AvtoVAZ has acknowledged that a huge number of Lada cars have accumulated in the company's warehouses. Company President Maxim Sokolov announced during the St. Petersburg International Economic Forum (SPIEF) that car inventories amount to about 100,000 units, which is twice as much as it should be.
Because of this, the plant is forced to revise its production plan for 2025, which initially envisaged the production of 500,000 new cars. Sokolov noted that in the face of falling demand for new cars in Russia, which reaches 30-40%, it is necessary to adapt production volumes to the real market conditions.
We will adjust our production program, but this is a natural management decision, because when the market falls, you have to follow the objective external realities.
The decline in demand for cars has also created a financial burden on dealers, who are required to buy cars from AvtoVAZ within 90 days. This was reported by insiders. However, in some regions, for example, in the Samara region, dealers store cars on their sites for 3-4 months, which significantly exceeds the standard term.
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