Lada car

By Pierre99 on 07/01/2023 at 6:40 pm

AVTOVAZ reduces its production of LADA for 3 months

When geopolitics impacts the economy, and what is more, automotive production. On the background of a Ukrainian file.

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When geopolitics impacts the economy, and what is more, automotive production. Avtovaz, the Russian car manufacturer controlled by the Renault-Nissan Alliance, announced on Monday that it wished to reduce its production of Lada cars during the three months after. A decision which indirectly derives tensions between Western countries and Russia on the background of Ukrainian file.

While vehicle purchases were already experiencing a slowdown given growth at half mast, now the sanctions taken against Moscow in response to its action in Ukraine do not manage things. The Russian economy could indeed directly suffer from this situation, and even more directly the Russian consumers, who prefer to postpone their purchases.

It is therefore in the end, to cope with a drop in domestic demand, that avovaz decided to reduce its production by 25.000 cars in total in September, October and November.

Let us recall, by way of comparison, that during the month of July, 47.100 lada, as well as 12.100 Renault and Nissan vehicles were produced by the manufacturer. At the same time, Lada sales fell 25% to establish itself at 28.014 units.

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