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Business Insider
6 days ago
- Automotive
- Business Insider
Russia's biggest carmaker is eyeing a 4-day workweek because sales are doing so poorly
Avtovaz, the firm that manufactures Russia's best-selling car brand, said on Tuesday that it may shift to a four-day workweek amid forecasts of plummeting sales for this year. The state-owned automaker told Russian state media it was fighting multiple headwinds, including Chinese car brands surging into the local market. So it's considering introducing the downsized workweek in the fall, starting on September 29. "At the same time, the company emphasizes that the final decision on the introduction of a partial four-day workweek will be made based on the results of an analysis of market trends and economic factors, including the level of the key rate and the availability of credit products," Avtovaz said in a statement to Russian media. The firm makes the Lada, the Soviet Union's most widely produced family of cars, and a symbol of Russia's Cold War era. The Lada continues to be the most common car in the country. Avtovaz has previously reduced factory work days. It last introduced a temporary four-day workweek for three months in 2022, as the onset of the Ukraine war prompted foreign industries to leave Russia. Now, it's telling state media that its sales were hit hard by tightening car loan rules and high interest rates — debt-averse measures that Moscow imposed amid the West's sanctions. China's cars hit Lada hard But this time, the company also blamed the heavy import of foreign cars in 2024. With almost all international car brands ceasing official sales in Russia after the Ukraine war began, foreign sales there are dominated by Chinese automakers. Chinese car brands sold over 1 million vehicles in Russia in 2024, a sevenfold increase from the previous year. In its statement, Avtovaz accused imported brands of "pursuing a policy of price dumping," saying that these rivals' warehouses hold over 400,000 unsold cars. And the Russian carmaker thinks its revenues will continue to suffer. Avotvaz said last month that it expected its car sales to drop 25% to 1.1 million vehicles in 2025 compared to last year. That's amid an overall drop in car sales across Russia. The local auto analysis firm Autostat said on July 4 that 90,116 new passenger cars were sold in June, down 27.6% from the same month last year. Despite its challenges, Avtovaz holds the largest share in the domestic market, selling just over a quarter of those cars in June. Avtovaz and Solaris, a new local car company that operates an old Hyundai plant in St. Petersburg, are the only two Russian companies in the country's top 10 passenger car firms by sales. Another seven of the top 10 are Chinese firms, while one is Belarusian.
TimesLIVE
6 days ago
- Automotive
- TimesLIVE
Russian carmaker Avtovaz may shorten work week as sales sink
Russia's largest carmaker Avtovaz on Tuesday said it may shorten its working week to four from five days, a rare move from a major state-owned employer, as high interest rates and competition from China squeeze its sales. Avtovaz, struggling to find enough car buyers, said last month that it expects sales across Russia's car market to shrink by 25% this year and has blamed the central bank's high interest rates, which reduces appetite for car loans and raises production costs. Russia's key interest rate has been at a more than 20-year high for several months and the central bank has come under pressure from government officials and business leaders to reduce borrowing costs more quickly. The bank is widely expected to cut rates by 200 basis points to 18% on Friday. 'We are talking about the high key rate and tougher demands from the regulator for borrowers on car loans,' Avtovaz said in a statement. 'In addition, a significant number of cars have been imported into Russia, with imported brands pursuing a policy of price dumping.' Avtovaz employs more than 30,000 people, mostly in Togliatti, a city on the Volga river 800km southeast of Moscow, but does not disclose specific numbers. Its sales fell 25% to 155,481 units in the first half of this year, according to Autostat. The company switched to a four-day work week for three months in 2022 after Western sanctions were imposed due to Moscow's invasion of Ukraine and foreign carmakers left the market. Sales of its flagship Lada car dropped by 48.2% to 174,688 units that year. Russia's domestic production had relied heavily on foreign producers and the market slumped in 2022 before the rapid arrival of Chinese carmakers helped revive the sector. Chinese rivals now account for more than 50% of sales in Russia, up from less than 10% before the war started. 'The final decision about introducing a part-time four-day work week regime will be made following analysis of market trends and economic factors, including the level of the key rate and the availability of credit products,' Avtovaz said. Should it be implemented, the shortened work week would start in late September.
India.com
7 days ago
- Automotive
- India.com
Russia facing major crisis, biggest car company forced to work 4 days in a week, how China destroyed Russia?
Home News Russia facing major crisis, biggest car company forced to work 4 days in a week, how China destroyed Russia? Russia facing major crisis, biggest car company forced to work 4 days in a week, how China destroyed Russia? Carmaker AvtoVAZ is facing difficulties due to the high car loans and 'price dumping' of imported Chinese cars in the Russian market. Russia facing major crisis, biggest car company forced to work 4 days in a week, how China destroyed Russia? Moscow: AvtoVAZ, which is the biggest carmaker in Russia, is going to make major changes in the company. It is planning to reduce its work week from five to four days. Known for its Lada cars, AvtoVAZ is forced to take this step because of the decline in car sales due to high interest rates and the increasing challenge from Chinese competitors. Its sales have declined by 25 percent in the first six months. However, the carmaker has blamed the high interest rates of Russia's central bank, because of which people are not taking car loans. The increased production cost is also haunting the country. The situation has come to the fore amid slow growth and fears of recession in Russia's economy. It is also a sign of the major impact on the economy following two years of heavy defence spending on the Ukraine war. How Chinese Cars Dominating In Russian Auto Market Amid slow growth and fear of recession, 'price dumping' of imported Chinese cars in the Russian market is also a major problem for AvtoVAZ. Notably, 'Made in China' vehicles now account for more than 50 percent of sales in the country. AvtoVAZ also plays a part in the country's big economy as it employs over 30,000 people. It is worth noting, earlier the Russian government has previously provided financial assistance to the company to save it from bankruptcy. AvtoVAZ To Reduce Working Hours Russia's largest car company plans to reduce its working hours starting from September. It is considering working four days a week instead of five. The reason is declining sales. In June, Russia's Finance Minister Maxim Reshetnikov warned that Russia's economy is on the verge of recession. Russian car sales are projected to decline by 25% in 2024, mirroring a similar drop in AvtoVAZ sales during the first half of the year. Autostat reports that AvtoVAZ sales reached 155,481 units in this period, representing a 25 percent decrease. For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest World News on
Reuters
22-07-2025
- Automotive
- Reuters
Russia's top carmaker Avtovaz may shorten work week as sales slump
July 22 (Reuters) - Russia's largest carmaker Avtovaz (AVAZI_p.MM), opens new tab on Tuesday said it may shorten its working week to four from five days, a rare move from a major state-owned employer, as high interest rates and competition from China squeeze its sales. Avtovaz, struggling to find enough car buyers, said last month that it expects sales across Russia's car market to shrink by 25% this year and has blamed the central bank's high interest rates, which reduces appetite for car loans and raises production costs, as a major issue. Russia's key interest rate has been at a more than 20-year high for several months and the central bank has come under pressure from government officials and business leaders to reduce borrowing costs more quickly. The bank is widely expected to cut rates by 200 basis points to 18% on Friday. "We are talking about the high key rate and tougher demands from the regulator for borrowers on car loans," Avtovaz said in a statement. "In addition, a significant number of cars have been imported into Russia, with imported brands pursuing a policy of price dumping." Avtovaz employs more than 30,000 people, mostly in Togliatti, a city on the Volga river 800 km (500 miles) southeast of Moscow, but does not disclose specific numbers. Its sales fell 25% to 155,481 units in the first half of this year, according to Autostat. The company switched to a four-day work week for three months in 2022 after Western sanctions were imposed over Moscow's invasion of Ukraine and foreign automakers left the market. Sales of its flagship Lada car dropped by 48.2% to 174,688 units that year. Russia's domestic production had relied heavily on foreign producers and the market slumped in 2022 before the rapid arrival of Chinese carmakers helped revive the sector. Chinese rivals now account for more than 50% of sales in Russia, up from less than 10% before the war started. "The final decision about introducing a part-time four-day work week regime will be made following analysis of market trends and economic factors, including the level of the key rate and the availability of credit products," Avtovaz said. Should it be implemented, the shortened work week would start in late September.
IOL News
07-07-2025
- Automotive
- IOL News
New Chinese premium brand Lepas confirmed for South Africa in 2026: here's what we know so far
Another Chinese car brand is set to compete for a slice of the action in South Africa's hotly contested car market, and it goes by the name of Lepas. Although it is a newly launched brand, Lepas forms part of the Chery stable, and it will aim to expand its parent company's presence in the premium segment. The automaker has confirmed that the Lepas brand will be launched in South Africa in 2026, spearheaded by the L8 flagship SUV that was revealed at the 2025 Chery Business Conference in Wuhu, China, in late April. Although the full South African line-up has yet to be confirmed, the L8 is likely to be joined by the smaller L6 and L4 models that were also previewed at the Wuhu event. In time, the brand will expand its line-up to five vehicles, with the aim of achieving annual global sales of more than 500,000 units, Autostat reports.
