Lada sales bounce back on Russian government support

Lada sales bounce back on Russian government support

Sales of AvtoVAZ’s Lada cars surged in August as the industry grapples with the fallout from Russia’s invasion of Ukraine.

The brand said it sold 18,087 passenger cars during the month, up 75 percent from July.

While sales fell 7 percent from August 2021, it was the automaker’s best monthly performance since Russia sent tens of thousands of troops to Ukraine in February.

AvtoVAZ president Maxim Sokolov said sales of two Lada models – the Granta and Niva – had recovered to “pre-crisis levels”, which he said was a “key achievement” on the road to recovery. Company.

“We will successfully overcome the current difficulties and meet the demand in the Russian car market,” he said in a statement.

The company, which employs about 42,000 people, said a government program to subsidize the purchase of new vehicles helped support customer demand.

The Russian auto sector, which relies heavily on foreign parts and global supply chains, came to a standstill after the West hit Russia with an unprecedented package of sanctions following the invasion of Ukraine, and international manufacturers shut down their Russian operations.

AvtoVAZ’s longtime shareholder, Renault, sold its stake in the company in May.

Also in May, Russian car production plunged by 97 percent as several factories, including AvtoVAZ, closed their doors, laid off workers and began offering staff cash bonuses to quit.