MOSCOW, 14 FebAvtoVAZ has turned to the authorities for state support to curb price increases for its most affordable Lada Granta model in the basic configuration; the government is discussing the relevant regulatory act, company president Maxim Sokolov told reporters.
Earlier, the top manager noted that AvtoVAZ has developed a mechanism to contain the price of the base Lada Granta, and intends to discuss it with the Ministry of Industry and Trade of the Russian Federation.
“We are actively working. Not only on the platform of the Ministry of Industry and Trade of the Russian Federation — already of the Government of the Russian Federation. The draft regulatory act is being discussed… The Ministry of Industry and Trade supports us, but the level of such an act is within the competence of the government, so we are waiting for the appropriate approval of the rules that will provide a mechanism for compensating for a stable price for a car Lada Granta is in the basic configuration, and now we are actually fulfilling the president’s instructions,” he said on the sidelines of the Russia exhibition and forum, commenting on the price containment mechanism.
Sokolov also emphasized that prior to the adoption of this regulatory act, AvtoVAZ had already fixed the price for the base Lada Granta — 700 thousand rubles.
The top manager did not disclose what exactly the compensation mechanism under discussion is and whether it involves subsidies to the automaker. “I won’t tell you now. The Russian government must finalize this act,” he explained.
AvtoVAZ owns production sites in Tolyatti, Izhevsk and St. Petersburg. In mid-May last year, the French Renault transferred its share in AvtoVAZ (67.69%) to the state ownership of the Russian Federation. Now the brand consists of four families of models: Vesta, Largus, Granta and Niva. Sales of Lada cars in 2023 amounted to 352.6 thousand units (an increase of almost two times in annual terms).