TASHKENT, April 25AvtoVAZ will raise prices for Lada cars by an average of two percent from May 1, the company's president Maxim Sokolov said on the sidelines of the Innoprom international industrial exhibition in Tashkent.
He noted that the rise in prices was caused by a general increase in tariffs due to inflation.
“But we have set a course to raise lower than inflation, and we are acting in accordance with this approved financial plan,” the head of the automobile plant explained .
Also in May, AvtoVAZ will introduce marginal prices for the sale of Lada cars in its dealer network. As Sokolov emphasized, the manufacturer will strictly control the innovation up to the termination of the contract in case of violations.
According to the president of the company, the cost of components, spare parts and raw materials has increased both among suppliers and sub-suppliers of the company due to the growth of the exchange rate, which cannot but affect the price of the car. Nevertheless, AvtoVAZ will remain within the limits of inflation: according to the latest forecast of the Ministry of Economic Development, it is expected at the level of 5.3 percent.
Also, commenting on prices, the top manager noted that the cost of Lada cars is currently quite high. This is partly due to the high localization of production, which, positively influencing technological sovereignty, increases the costs of the manufacturer.
He explained that with localization, the price of a product includes an investment component, and the market for the produced component will be limited only to Russia.
How Sokolov emphasized that it was necessary to localize exactly those parts that were previously produced by global suppliers for the entire world market, which «fits plus or minus 80 million pieces.» Therefore, the localization of production by 600 thousand copies increases the cost of spare parts. /avtovaz-1863100226.html» data-title='Avtovaz sales in Russia grew by 90 percent in March'>