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In Russia they announced “terrible trends” due to cars from China

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In the first quarter of 2024, AvtoVAZ’s revenue will account for less than 10% of the total new car market in Russia.

Chinese automakers are offering big discounts to Russian buyers and “squeezing” the largest Russian manufacturer AvtoVAZ in the low-margin market segment. The head of the company, Maxim Sokolov, said this, reported Interfax on Tuesday, April 16.

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“The Chinese work in the most marginal segment of the market, that is, they collect more money with fewer cars. because it needs to be sold cheaper – and thus we are squeezed there, “- complain of the head of AvtoVAZ.

According to Sokolov, previously the Vesta model “was a good high-margin product, and technologically advanced,” but now Chinese competitors “start to surpass Vesta at this 900 thousand ruble discount and, entering the segment its 1.5 to 2 million rubles, is starting to squeeze it from there.”

As a result, in 2023 AvtoVAZ’s revenue will only reach about 10.8% of the total new car market in Russia, and in the first quarter of this year this figure will drop below 10%.

“This trend is scary… And although in quantitative terms we have about 30%, the share of money continues to decrease,” said Sokolov.

At the same time, the sales volumes of “individual Chinese manufacturers” in financial terms have already exceeded the figures of AvtoVAZ, the director of the company admitted.

He recalled that the net income of the Russian distributor of the Chinese automaker Chery (JSC Cherry Cars Rus) last year amounted to almost 35 billion rubles.

“At the same time, Chery does not produce (in Russia, – ed.) there are no local products at all,” said Sokolov.

It was previously reported that sales of Chinese cars in Russia have reached their peak. The aggressor country has become China’s largest export market for automobiles. Even connoisseurs of premium brands in Russia are forced to switch to Chinese cars.

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Source: korrespondent

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