Categories: Auto News

The head of AvtoVAZ explained the stoppage of production of Lada Vesta and Niva

In an interview with Rossiya 24, Maxim Sokolov listed the factors that influence the plant’s strategy. Firstly, AvtoVAZ has already fulfilled the plan for 2024 and produced more than half a million cars. Secondly, at the end of the year the market began to deteriorate greatly due to the high key rate, and it was not practical to produce for storage. Finally, Lada’s assembly lines are affected by the actions of the Chinese auto industry.

Maxim Sokolov made it clear that it is important for the plant to maintain a balance between production capabilities and consumer demand. The head of AvtoVAZ complained that the increase in recycling collection has not yet affected the market. The thing is that the Chinese auto industry has “brought a large amount of inventory,” and no one can raise prices in accordance with the scrappage level.

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According to Maxim Sokolov, the reserves of Chinese cars on the Russian market amount to more than half a million units, and this excess also affects AvtoVAZ. The plant is now waiting for stocks to clear, but the forecast is that the price war will last until mid-2025. This situation affects both the investment and production plans of AvtoVAZ.

Let us remind you that in November AvtoVAZ stopped production of the Lada Niva Legend, and the price lists of three-door SUVs still contain the “not produced” mark. Last week, the assembly of Vesta SW station wagons in all trim levels stopped, and out of 35 modifications of the Vesta family, 10 remained on the assembly line.

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