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As the market slumps, Russia’s largest automaker plans to produce 100,000 cars in H2, Auto News, ET Auto

As the market slumps, Russia's largest automaker plans to produce 100,000 cars in H2, Auto News, ET Auto
Avtovaz sold more than 150,000 Ladas in the second half of last year and more than 350,000 units in the full year. In the first five months of this year, 67,230 units were sold.

MOSCOW – Russia’s largest automaker Avtovaz plans to produce 100,000 cars by the second half of 2022, its CEO said Friday, as it seeks to reverse a record decline in production caused by Western opposition to Russia’s military. campaign in Ukraine.

The Russian car industry, which is heavily dependent on foreign investment and equipment, has suffered an exodus from international manufacturers. 3,720 cars were produced in May, compared to about 112,000 in the same month last year.

Avtovaz resumed production of its best-selling Lada Granta model last month, after production was partially halted in March after Western sanctions led to a shortage of electronic parts.

“Maybe in the near future we can start assembling the Lada Largus model. However, most of the components are under the sanctions regime,” said Maxim Sokolov, former Minister of Transport who became CEO of Avtovaz, quoted by the regional government in Samara. , the heart of the Russian automotive sector and the production of Avtovaz.

“Therefore, we can’t say for sure how long the inventory we have in the factory now will last if there are no new channels or supply chains,” he said.

Avtovaz’s cheapest model, the Lada Classic, is produced without airbags or an automatic braking system due to sanctions and uses an older engine than before.

Sokolov said he expected some features in cars to return as more domestic parts manufacturers pop up.

French auto giant Renault sold its majority stake in Avtovaz in May to a Russian scientific institute for the symbolic sum of one ruble, with a six-year option to buy it back.

Avtovaz sold more than 150,000 Ladas in the second half of last year and more than 350,000 units in the full year. In the first five months of this year, 67,230 units were sold.