Sales of “AvtoVAZ” in February collapsed by 21%

by time news

Sales of Lada cars in Russia in February 2022 decreased by 21% compared to the same month last year, to 22,378 units, the Association of European Businesses (AEB) reported. In two months, they decreased by 19% to 40,423 vehicles.

Sales of AvtoVAZ are falling faster than the market. In general, in February, 4.8% fewer new passenger cars and light commercial vehicles (LCV) were sold in the Russian Federation than in the same period in 2021 – 114,349 units. Moreover, in February, the decline in sales intensified – in January they sank by only 3.7%.

Deterioration of results in February was shown in the Russian Federation by almost all brands of the mass segment, except for Chinese ones. Sales of the most popular foreign cars – Korean Kia and Hyundai – sank 9% and 1%, respectively, to 15,001 and 13,761 units. Toyota sold 7568 (-1%) cars, VW – 5631 (-18%), Skoda – 5438 (-23%), Nissan – 4192 (-12%). The exception in February was the French Renault, which is in fourth place in terms of the number of cars sold in Russia: the concern increased sales by 2% to 10,382 units. At the same time, in January-February, Renault sales fell by 2% and amounted to 18,320 cars.

The Chinese Haval, which is now one of the ten best-selling cars on the Russian market, increased sales in February by 65%, to 3,569 cars. Purchases of Chery brands also rose, including its sub-brand Cheryexeed, Geely and Changan. Chery cars were sold 2907 units (+45%), Geely – 2188 (+82%), Changan – 472 (+19%). In February sales of Mitsubishi and Volvo increased by 47% to 2892 vehicles and by 84% to 1023. Ulyanovsk Automobile Plant (UAZ) sold 1684 vehicles (+7%). Lexus, which closes the top twenty most popular brands among Russians, reduced sales by 28% to 884 cars.

In February and in general for two months of 2022, sales of commercial vehicles increased in Russia. GAZ Group sold 3,791 LCV units (+17%), while Ford, represented in Russia by the only Transit model, sold 1,763 units (+65%). At the same time, sales of VW commercial vehicles fell by 9% and amounted to 418 units.

In 2021, sales of passenger cars and LCVs in Russia were declining in the second half of the year amid the crisis due to a shortage of microchips. Nevertheless, at the end of the year, the market showed a slight increase of 4.3% compared to 2020, with sales of 1.67 million units.

In early February 2022, a representative of the Russian Association of Auto Dealers told Vedomosti that car dealers do not expect an improvement in the situation with a shortage of semiconductors before the second quarter.

Additional pressure on the balance of supply and demand in the car market in the Russian Federation is exerted by the situation with the imposition of sanctions by the countries of the European Union and the United States due to Russia’s special military operation in Ukraine, which began on February 24. As a result of sanctions against the Russian Federation, which some auto concerns have joined, and the weakening of the ruble, the assembly and shipment of many foreign cars in the country has been suspended for an indefinite period (Vedomosti wrote about this on February 28). This was done, in particular, by Volkswagen Group Rus (factories in the Kaluga region and Nizhny Novgorod), Renault (Moscow), Mercedes (Moscow region), BMW (Kaliningrad), Hyundai, Toyota (both brands are St. Petersburg), Sollers Ford (Elabuga). Among the importers who stopped the import of cars are Audi, Porsche, General Motors (Chevrolet and Cadillac), Jaguar Land Rover, Lexus, Volvo, Honda and others.

As Vedomosti wrote, as of March 3, only 55% of the capacities for the production of cars and LCVs from those that were loaded in 2021 continued to operate in the country. and controlled by the French Renault AvtoVAZ (both production sites will be stopped – in Izhevsk and Togliatti).

The Ministry of Industry and Trade, in order to reduce the negative consequences of sanctions and the collapse of the ruble, proposed to postpone the payment of the recycling fee for the automotive industry to the end of the year, follows from the message of the department dated March 4. Previously, this fee was collected quarterly. This will allow maintaining the working capital of the backbone automakers, which are the largest employers, including to ensure timely payment of salaries to employees, payments on other mandatory payments, as well as for advanced purchase of components, the Ministry of Industry and Trade explained.

The picture of the market shrinking continues, the main problem is the lack of cars, VTB Capital analyst Vladimir Bespalov told Vedomosti. Because of this, AvtoVAZ has such a drop in sales, he explains. According to the expert, last year’s high base also played a role in the market dynamics. Together, these two factors “added up to a moderate decline,” he added.

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