Moskvich Targets Price Reduction Through Localization and Local Supply Networks
In a candid discussion with RIA Novosti, Oleg Maslyakov, the production director at the Moskvich plant, indicated that the company is prepared to reduce car prices. His remarks emphasize a strategic shift toward stronger localization and a rapid revitalization of Russia’s supplier network, equipped with the necessary skills and basic production capabilities. He suggested that accurate localization on the right scale would positively influence the final price of Moskvich vehicles. In addition to localization, Maslyakov highlighted other active measures, including lowering logistics costs, reducing production expenses, and trimming fixed costs. These steps are all part of the ongoing effort to bring more affordable models to the market while maintaining production efficiency. (Source: RIA Novosti)
The executive noted that predicting exact car prices for 2024 is challenging, yet Moskvich is committed to optimizing prices across its model lineup. The emphasis remains on maintaining competitive pricing while ensuring product quality and supply reliability through domestic production improvements. (Source: RIA Novosti)
Earlier in the year, there was a notable shift in pricing within the Russian market. In November, prices for the FAW Bestune T77 crossover, which serves as the basis for the St. Petersburg-assembled Lada X-Cross 5, rose sharply. The entry-level version of the Bestune T77 saw an 18 percent price increase, amounting to 439 thousand rubles. After the adjustment, the model could be purchased for no less than 2.86 million rubles. The higher-end Prestige Plus DCT variant rose by 436 thousand rubles, reaching 3.02 million rubles. These changes underscore the volatility in vehicle pricing amid supply and localization dynamics. (Source: Industry reports)
In related news, Kaiyi announced that the X7 Kunlun crossover would enter the Russian market in December, signaling ongoing expansion and competition among local and foreign brands as the market adapts to new production and localization realities. (Source: Market updates)