AvtoVAZ will reduce part of its investment programs due to macroeconomic factors
AvtoVAZ plans to adjust its investment plans and postpone some programs due to unfavorable macroeconomic factors, Maxim Sokolov, the company's president, told Izvestia in an interview.
"We are carefully looking at our investment appetites, and, of course, we will adjust them. But we see that, given the falling market and the money we raise through our sales, there won't be enough for everything," said Maxim Sokolov.
He pointed out that research and development work (R&D) will not be reduced, because it represents the future. But some third-rate investments will have to be postponed, the head of the company added.
According to Maxim Sokolov, the main impact on the market is exerted by the high key interest rate and the tightening of credit conditions.
"Unfortunately, the market is declining significantly compared to 2024, because up to 80% of our products were sold on credit, and for some models even 90%. And, of course, it is not easy to withstand this macroeconomic, external financial blow," he said.
Meanwhile, the volume of investments in the development of automotive industries remains at an all-time high.
"The volume of investments in the development of production, in the implementation of new models, including Lada Azimut, by the end of 2024 amounted to more than 37 billion rubles. There has never been such a thing in the history of AVTOVAZ <...> For 2025, our amount is even higher — more than 40 billion," Sokolov said.
Read more in Maxim Sokolov's exclusive interview with Izvestia:
Переведено сервисом «Яндекс Переводчик»
