Ilya Semenov, the development director of the United Automotive Technologies group, outlined the risk of halting production lines when wages stay too low and called for higher car prices. He emphasized that without adjusting pay and prices in tandem, factories will waste time and resources without delivering sustainable output. The statements were shared during a major industry event, underscoring the urgency felt across the sector.
According to Semenov, the automaking complex faced a workforce contraction in recent years. In 2022, the group employed about eight thousand people, but a sharp drop in Russian automobile production forced a reduction to roughly seven thousand. The company noted that scaling back recruitment would be difficult or impossible under the prevailing wage pressures, further squeezing production momentum. He pointed out that without aligning compensation with market realities, factories cannot maintain current output levels or invest in necessary modernization.
“We are missing about a thousand workers. With the current wage trajectory, the existing production lines cannot sustain the products being manufactured on the conveyors”, Semenov stated. His comments highlight a direct link between wage levels, staffing stability, and the ability to meet demand without compromising quality or efficiency.
The United Automotive Technologies group is a KamAZ-owned conglomerate and serves as a major supplier to AvtoVAZ. The group comprises ten enterprises spread across five regions, including DAAZ, SAAZ, manufacturers of lighting equipment Avtosvet and Osvar, Vazinterservice, Rosavtoplast, and Motor-Super, among others. This network forms a critical node in the Russian automotive supply chain, where cost pressures and wage dynamics ripple through multiple facilities and product lines.
Earlier reports from the Mash Telegram channel indicated that AvtoVAZ might be considering price adjustments for Lada vehicles, with potential changes expected as early as October. The potential price moves reflect broader market pressures and the need to reconcile input costs with consumer pricing, a balance that affects both producers and buyers in the weeks ahead. The unfolding situation suggests that wage policy, labor availability, and pricing decisions will be closely watched by industry observers and policymakers alike, as they directly influence production viability and competitiveness in the domestic market.