The factory in Togliatti is running almost at full capacity: the five-day working week is back, Lada Granta is produced in two shifts and Niva in one. From August 29, a six-day working week will be introduced and in the autumn the conveyor belts will work until two o’clock in the morning.
As a result, the company will produce about 100 thousand cars in the second half of the year. In comparison, car sales are now lada per month are just over 10 thousand cars. From September, deliveries will increase to 16-17 thousand cars per month, which means that the demand is more than one and a half times higher.
As a result, dealers should start lowering prices and impose fewer and fewer extras. This will boost demand and eventually everything can go back to the way it used to be – dealers are earning again from sales, not fantastic margins.
“AVTOVAZ has opportunities, as the competition in the market is not very strong. In addition, under the preferential loan program, Lada now has quite good discounts. That’s why I think there will be a demand for cars with a subsidized preferential loan. Another important point is that taxi companies will also buy AvtoVAZ products,” Kommersant quotes the opinion of Sergey Udalov, executive director of the Avtostat analysis company.
Next year, AVTOVAZ will already produce half a million cars – just like before the pandemic.