Rostec CEO: AvtoVAZ sales to fall around 7% in 2020

MOSCOW, Dec 7 (PRIME) -- The sales of Russia’s largest car maker AvtoVAZ will fall by around 7% in 2020, but the company will have a minimal net profit, state industrial corporation Rostec CEO Sergei Chemezov told reporters on Monday.

“Since July, their sales have been growing every month – this partially compensates for the spring losses. We expect the year to be profitable, but of course, the company is unlikely to achieve the same profit as in 2019. The drop in sales will be about 7%. That is, there will be some profit, but minimal,” Chemezov said.

Overall car sales in Russia will decrease by 10–15% this year, he added.

“This is a difficult year, and this concerns not only AvtoVAZ, but all manufacturers of passenger cars and trucks too. The market experienced a serious drop in the spring months. Overall, I think that the market will fall on average by 10–15%,” he said.

Chemezov also said that Rostec plans to write off the remaining 20 billion ruble debt of AvtoVAZ.

(74.2529 rubles – U.S. $1)

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