AvtoVAZ admits revision of the production plan for 2025

AvtoVAZ plans to produce 500 thousand cars in 2025. This was told to "Izvestia" on December 4 by the head of the car company Maxim Sokolov.

"500 thousand cars, this is the budget and production plan approved by the Board of Directors," - said the head of AvtoVAZ.

At the same time, he added that due to dynamic changes in the market situation, the plan may change. According to him, at the moment car sales in all segments are falling, but he noted that LADA products are keeping up with the trends. Sokolov specified that compared to 2023 in the current year the situation is in the plus, but he added that the car company is preparing for a difficult 2025.

"We are accumulating the necessary finances, negotiating with our lending banks, with our dealerships, carefully looking at the situation of our partners - suppliers of component base, because on all fronts, so to speak, there are macroeconomic thunderstorms," - specified the head of the car company.

He also drew attention to the growth of the exchange rate and the key rate, noting that this greatly slows down lending. According to him, about 65% of all cars, where the brand LADA, are sold exactly on credit.

In addition, answering a question regarding price increases, Sokolov noted that there are no plans to do so yet, but he added that the changing ruble exchange rate will make purchases of imported component base more expensive.

Earlier, the investment program of AvtoVAZ for the next year was approved - according to the plan, it will exceed 45 billion rubles. The bulk of these funds will be used for the implementation of development work on automobile projects, power units, as well as for the development of facilities. The approved production plan for 2025 assumes the production of 500 thousand cars.

On November 20, Sokolov noted that the revenue of AvtoVAZ may exceed Br1 trillion a year if the annual production volume is about 700 thousand cars. The production capacity of the entire AvtoVAZ group is already designed to produce more than 600,000 cars per year at maximum utilization. In theory, AvtoVAZ can produce a larger volume if its capacities are developed, but it depends on the market and industrial policy instruments, the head of the company pointed out.