The domestic automotive industry survives in the conditions of aggressive expansion of Asian brands solely due to the total reduction in the cost of finished cars. This was stated by Maxim Sokolov, president of the Tolyatti concern, to journalists on the sidelines of the St. Petersburg International Economic Forum. The top manager outlined the giant's production priorities.
The average cost of a new passenger car in the country has already broken the psychological mark of 3.5 million rubles. The Tolyatti giant deliberately keeps the top trim levels of its flagship family at a strict ceiling of 2.2 million. This colossal gap of 1.3 million rubles allows the plant to maintain control over 25 percent of the entire national market. In fact, the conveyors stamp out the most affordable chassis so that enterprises do not stop due to a lack of solvent demand.
We operate in the niche of the most affordable cars in terms of price. And we continue, this is our strategy, I would even say - a historical mission
The AvtoVAZ management openly admits: the production of budget cars has turned from an ordinary business strategy into an uncontested "historical mission". Without this artificial price barrier, domestic assembly lines simply would not be able to physically compete with mass imports from China. It is the availability of local metal and plastic that remains the plant's only reliable shield.
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