Thousands of unsold LADA cars have accumulated near Togliatti. Distributors are forced to rent additional storage space for cars. Since the beginning of the year, demand for AvtoVAZ products has fallen, leading to overproduction.
The company is planning to transfer employees to a four-day work week. This decision is related not only to internal economic difficulties, but also to growing pressure from Chinese automakers. Brands such as Haval, Chery and Geely are actively expanding their presence in Russia, offering more technologically advanced models in a similar price segment.
Analysts note that Chinese competitors have been able to adapt to the new conditions faster than AvtoVAZ. Their cars are often equipped with modern multimedia systems, hybrid engines and driver assistance systems, which makes them more attractive to buyers.
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