Russian carmaker AvtoVAZ reported a jump in new car sales in August on Friday, as the country’s industry is reeling from Western sanctions over Moscow’s invasion of Ukraine.
Car maker Lada announced that it sold 18,087 passenger vehicles during the previous month, a figure that increased by 75.2% compared to July. Although AvtoVAZ’s sales are down 7 percent year-on-year, they are the automaker’s best monthly performance since Russia invaded Ukraine in February.
AvtoVAZ president Maxim Sokolov said sales of two Lada models – the Granta and Niva – had recovered to “pre-crisis levels”, a development he described as a “significant achievement” in the company’s turnaround
“We will successfully overcome the current difficulties and meet the demand of the Russian car market,” he said in a statement, according to Reuters.
The company, which employs about 42,000 people, said a government program to subsidize the purchase of new vehicles helped boost demand.
Russia’s auto sector, which is heavily dependent on global supply chains, came crashing down after the West slapped the country with an unprecedented package of sanctions over its invasion of Ukraine and international manufacturers halted operations in the country.
It is also recalled that AvtoVAZ’s long-time shareholder, French automaker Renault, sold its stake in the company in May.
Source: Capital
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