Latest news with #Avtovaz
Reuters
18-06-2025
- Automotive
- Reuters
Russia's top carmaker Avtovaz expects market to shrink by 25% this year
June 18 (Reuters) - Sales of passenger cars in Russia are set to drop by 25% to 1.1 million units this year, the head of Avtovaz, the country's largest automaker, said on Wednesday. Russia's car market slumped as Western companies halted sales and production soon after Moscow's February 2022 invasion of Ukraine. Spurred by the rapid arrival of Chinese carmakers, the market gradually recovered before starting to struggle again this year. "The situation will be difficult, the market will fall, it is already quite obvious, and the volume of the decline will be about one quarter compared with last year," Avtovaz CEO Maxim Sokolov said on TV channel Russia 24. In late 2024, Sokolov had blamed the central bank's high key interest rate as one of the difficulties facing the auto sector. On Wednesday, Sokolov said that around 500,000 new cars were ready and waiting to be sold, but finding buyers was difficult. In January-May, sales of new passenger cars fell 26% to 440,259 units, according to data from analytical agency Autostat, while Avtovaz's own sales fell 24.2% to 131,316 units. "This is serious, production cannot move forward with such fluctuations," Sokolov said. Avtovaz is taking anti-crisis measures. The company is adjusting its production plan for 2025 and expects its own sales to drop by 20-25% to 367,200 cars, the TASS news agency reported, citing Sokolov.
Yahoo
10-03-2025
- Automotive
- Yahoo
Russia moves to curb Chinese car imports with higher fees, tighter regulations
Russia is moving to curb the flow of Chinese car imports, a decision that could deal a blow to Chinese manufacturers and traders who have increasingly relied on the Russian market, the Financial Times reported on March 10. China has remained a key economic partner for Russia throughout the full-scale invasion of Ukraine, supplying Moscow with critical dual-use goods and helping to keep its economy afloat amind Western sanctions. Chinese car exports to Russia surged sevenfold in 2023 compared to 2022, as Western sanctions over Moscow's war against Ukraine cut Russia off from brands like Volkswagen, Toyota, and BMW. Automakers in China, facing anti-dumping measures in the U.S., EU, Canada, Turkey, and Brazil, found a lucrative market in Russia, the Financial Times wrote. Chinese brands now account for 63% of the market, while domestic Russian brands have fallen to 29%. In response, Russian authorities have introduced measures to slow the influx. In January, Moscow raised the "recycling fees" for most passenger cars to $7,500, more than doubling the rate set last September. The fees will continue rising by 10-20% annually until 2030. Russian regulators have also blocked the sale of a Chinese truck model over alleged safety violations and warned that more compliance checks may follow. The move comes amid an expected decline in new car sales in Russia, with projections of a 30% drop in 2025 if high interest rates persist, according to Avtovaz CEO Maxim Sokolov. The state-owned Avtovaz is Russia's largest carmaker, known for its flagship Lada vehicle series. The Russian Central Bank raised its key interest rate to 21% in October 2024 to curb inflation from wartime spending. Despite its growing economic ties with Russia, Beijing insists it remains neutral in Moscow's war against Ukraine and has even sought to position itself as a mediator. Read also: Russia's arms exports plunge by 47% since full-scale invasion's start, SIPRI reports We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Reuters
25-02-2025
- Automotive
- Reuters
Renault's Russia buyback to cost at least $1.3 billion, says Russia's Avtovaz
Feb 25 (Reuters) - Should French carmaker Renault ( opens new tab wish to buy back its majority stake in Russia's top carmaker Avtovaz, it would have to pay at least 112.5 billion roubles ($1.3 billion) to cover investments made since selling for only one rouble in 2022, Avtovaz said. U.S. efforts to secure a quick deal to end the war in Ukraine have sparked speculation that Western companies could seek to return to Russia in the event a peace deal is signed and Avtovaz's position offers the first indication of how hard Russian firms might push their former Western partners in negotiations. Renault last week said it was "very unlikely" to return to Russia under the exit terms it agreed, including a six-year buyback clause, when selling its 67.6% stake in Avtovaz to the Russian state in May 2022 following Moscow's invasion of Ukraine. The deal also included Renault's Moscow plant, but that was sold without a buyback clause. At the time, then industry and trade minister Denis Manturov said the cost of returning would include investments made by Russia in the interim. "It is clear that these investments will have to somehow be refunded, so the entry price will not equal the exit price of one rouble," the TASS news agency cited Avtovaz CEO Maxim Sokolov as saying on Tuesday. Renault declined to comment on Avtovaz's comments. On the question of a return to Russia, its official position is: "We do not foresee any change for the short term." Renault allocated about 20-22 billion roubles annually for facilities renovation, Sokolov said, but Avtovaz raised this to over 27.5 billion roubles in 2023 and almost 40 billion roubles last year. Sokolov did not explain the sharp rise in investments, but Avtovaz has been increasing production. Following a sales slump in 2022, Avtovaz has seen steady growth in sales of its Lada cars and launched new models, now competing with Chinese carmakers that have seized market share. Avtovaz sold almost 460,000 Lada cars in 2024, an increase of 30.2% from the year before and more than double the nearly 190,000 sales in 2022 when sanctions and the exodus of foreign carmakers hit Russia's auto market hard. Sokolov did not specify whether the investment figures he named accounted for total investments or just Renault's hypothetical portion, but the overall figure serves to illustrate what other companies with buyback clauses might be up against. Hundreds of Western firms have exited Russia since February 2022. Some, such as Renault, McDonald's (MCD.N), opens new tab and Henkel ( opens new tab, agreed to buyback options when exiting. ($1 = 86.5955 roubles)
Yahoo
20-02-2025
- Business
- Yahoo
Encouraging foreign brands to return to Russia 'ill-advised', trade ministry says
(Reuters) - Encouraging foreign brands to return to Russia would be "ill-advised," according to the industry and trade ministry, which wants to champion domestic companies that have stepped in to fill the gaps left by departing Western counterparts. More than a thousand companies, from McDonald's to Mercedes-Benz, left Russia in the last three years by selling, handing the keys to existing managers, or abandoning assets. Others like Danone and Carlsberg had their assets seized and a sale forced through. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. But as Moscow and Washington discuss a path to end the war in Ukraine, one of the many questions on investors' minds is whether the corporate exodus from Russia, triggered by the February 2022 invasion of its neighbour, may be reversed. "The Ministry of Industry and Trade considers it ill-advised to stimulate the return of foreign brands," it said in a statement to Reuters on Thursday. "In the last three years, domestic companies have significantly increased their own production and actively occupied market niches vacated after the exit of foreign companies." Russian businesses have been successfully importing requisite goods through indirect means, the ministry said, and its absolute priority was protecting domestic producers and the production of high-quality products on Russian soil. French automaker Renault, which agreed a six-year buyback option when selling its majority stake in Russian carmaker Avtovaz in May 2022, on Thursday said the probability of activating its clause with Avtovaz was "very, very low." "If any foreign company decides to return to the Russian market, then this issue should be considered on an individual basis," the ministry said.
Reuters
20-02-2025
- Business
- Reuters
Encouraging foreign brands to return to Russia 'ill-advised', trade ministry says
Feb 20 (Reuters) - Encouraging foreign brands to return to Russia would be "ill-advised," according to the industry and trade ministry, which wants to champion domestic companies that have stepped in to fill the gaps left by departing Western counterparts. More than a thousand companies, from McDonald's (MCD.N), opens new tab to Mercedes-Benz ( opens new tab, left Russia in the last three years by selling, handing the keys to existing managers, or abandoning assets. Others like Danone ( opens new tab and Carlsberg ( opens new tab had their assets seized and a sale forced through. But as Moscow and Washington discuss a path to end the war in Ukraine, one of the many questions on investors' minds is whether the corporate exodus from Russia, triggered by the February 2022 invasion of its neighbour, may be reversed. "The Ministry of Industry and Trade considers it ill-advised to stimulate the return of foreign brands," it said in a statement to Reuters on Thursday. "In the last three years, domestic companies have significantly increased their own production and actively occupied market niches vacated after the exit of foreign companies." Russian businesses have been successfully importing requisite goods through indirect means, the ministry said, and its absolute priority was protecting domestic producers and the production of high-quality products on Russian soil. French automaker Renault ( opens new tab, which agreed a six-year buyback option when selling its majority stake in Russian carmaker Avtovaz in May 2022, on Thursday said the probability of activating its clause with Avtovaz was "very, very low." "If any foreign company decides to return to the Russian market, then this issue should be considered on an individual basis," the ministry said.
