Latest news with #Avtovaz
Yahoo
4 days ago
- Automotive
- Yahoo
Russia's biggest carmaker is eyeing a 4-day workweek because sales are doing so poorly
Avtovaz, the maker of the Lada, is thinking of switching to a four-day workweek amid poor sales. It accused foreign car firms of "price dumping," and projected earlier that 2025 sales would fall 25%. But Russians are also buying fewer cars overall, down 27.6% in June year-on-year. 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. Read the original article on Business Insider
Reuters
5 days ago
- Business
- Reuters
Russia's Kamaz to shorten work week due to truck market crisis
July 25 (Reuters) - Russian truckmaker Kamaz said on Friday it would reduce production and shorten its working week to combat a crisis in Russia's truck market that it blamed on the short-sighted policy of importers and the central bank's high interest rates. Russia's leading carmaker Avtovaz and the Gorky Automobile Plant both said this week that they may reduce their working weeks to four days from five, highlighting prohibitively high borrowing costs that are squeezing demand and hurting producers. The Bank of Russia, which has been under pressure from government officials and business leaders for months over high rates, is expected to slash borrowing costs by 200 basis points to 18% later on Friday, according to analysts polled by Reuters. Kamaz said Russia's market for trucks over 14 metric tons had slumped by 60% in the first half of this year and identified two leading causes. "1. The short-sighted policy of importers of foreign equipment, who, despite all forecasts of a declining market, imported an excessive amount of equipment last year," Kamaz said on Telegram. "2. The central bank's monetary policy, which has led not only to the impossibility of purchasing new equipment with the help of financial tools like credit and leasing, but is also forcing transport companies and others to return equipment leased last year to the lessor." Kamaz said over 30,000 trucks were sitting in warehouses with no demand even at dumping prices and equipment was being offloaded at well below market value. Kamaz said it would introduce a shorter working week from August 1. The company's plight highlights wider economic woes for Russia, with growth now slowing sharply after two years of military-spending fuelled economic overheating. Kamaz's sales are a key indicator of economic activity in Russia, both in terms of the construction sector and in trade.
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
23-07-2025
- 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.
Yahoo
22-07-2025
- Automotive
- Yahoo
Russia's top carmaker Avtovaz may shorten work week as sales slump
By Gleb Stolyarov and Alexander Marrow (Reuters) -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, 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
