AvtoVAZ: almost all of Russians’ money to buy cars goes to China

“If the market is measured in money, today Lada’s share is only 11%. In other words, only 11% of the money Russians spend on buying new cars remains in the Russian economy. Almost all other funds are dragged from Russia to China, where the value-added training centers are located. The ideal would be for everything to be exactly the other way around,” he emphasized.

According to AvtoVAZ, between 1.7 and 1.75 million cars will be sold in Russia in 2024, with Chinese models accounting for 60% of the market, Kostromin said. According to Autostat’s September forecast, Russians will buy around 900,000 Chinese cars until the end of the year.

This is a “huge” figure, taking into account that most of these cars are imported, said the senior manager. “We are the only company that develops the component base in the Russian Federation. It is the localization of the component base that will drive the growth and independence of our automotive industry,” said Kostromin.

He added that much will depend on government support for demand and localized production. If the amount of support is significant, then the share of Russian cars in the market can be increased. Otherwise, we will have to work to maintain our positions, since “the Chinese are here to stay,” concluded the vice president.

Since October 1, Russia has increased the recycling fee for imported cars by 70% to 85%. RB.RU wrote about how this will affect the cost of a car and whether it will affect cars produced in Russia.