Head of AvtoVAZ admits 30% drop in sales of new cars in 2025

If the key rate continues to grow, the sales of new cars in Russia in 2025 may decrease in relation to 2024 by about 30%. This was stated by the head of AvtoVAZ Maxim Sokolov.

"I am sure that the market of both passenger cars and commercial vehicles will shrink. We, in principle, forecast the market to fall next year, if the rate goes up further, to 1.3-1.4 million. That is, in relation to the expected results of 2024, this decline will be by 300-400 thousand cars," Sokolov said on the sidelines of the forum-exhibition "Transport of Russia" on November 19, TASS reports.

Despite this forecast, AvtoVAZ is not abandoning its plans to produce 500 thousand Lada cars in 2025, which the Board of Directors approved earlier, the top manager emphasized. In November, sales of Lada cars were 25-30% lower than AvtoVAZ expected. The final figures for this year will depend on the actions of the Central Bank regarding the possible growth of the key rate, the head of the company noted.

"We see that now the targeting of the Central Bank has achieved its goal, and customers are flowing from car dealerships to banks and accumulate their funds on deposits, which, of course, in the medium term will definitely have a negative impact on the market and production plans. Because it is simply impossible to maintain such production rates, which is demonstrated by AvtoVAZ over the past two or three years, next year with such a key rate," Sokolov explained.

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Earlier in the day it was reported that in 2025 AvtoVAZ may continue to index prices for Lada cars. Now the main factor in the growth of the cost of cars is the interest rate, which is based on the key rate, explained Maxim Sokolov.

Also on Tuesday, the head of the Ministry of Industry and Trade of the Russian Federation Anton Alikhanov said that the annual production volume of AvtoVAZ in the next six years may be increased to 700 thousand cars per year. Earlier in November, following the results of the meeting of the Board of Directors, AvtoVAZ said that the company will produce 500 thousand Lada cars at the end of this year.