AvtoVAZ President Maxim Sokolov said in an interview with RBC that he sees two directions for reducing retail prices.
The first is to increase the level of localization of Chinese cars that AvtoVAZ will produce at its sites. Due to high localization, AvtoVAZ will be able to receive compensation for the recycling fee, and, in fact, it will be possible to reduce the cost of the car by this amount - as a result, cars produced at AvtoVAZ will become cheaper than exactly the same models, but imported from China.
The second way is to work with dealers and strictly regulate prices. AvtoVAZ intends to set maximum resale prices for official dealers from May. If sellers still excessively inflate prices, the plant will use economic levers up to the termination of the dealer contract.
But for now, all this is just theory, here's what's happening in practice: from May 1, AvtoVAZ increased the cost of cars in the Granta and Niva Travel lines by about 2%.
