Falling demand forces AvtoVAZ to reduce its production plan for 2024
AvtoVAZ, Russia’s largest automaker, may revise its production program for next year. According to the Avtograd News public website, the company intends to adjust the previously approved plan from 401 thousand to 370 thousand cars. Such figures were recently announced by AvtoVAZ Vice President for Production Mikhail Ryabov.
Let us remind you that the production plan of 401.6 thousand cars for 2023 was approved in December last year by the company’s board of directors under the leadership of Deputy Prime Minister Denis Manturov. This is approximately the same amount as was released in 2021, and 80% more than the 2022 result. However, in the current crisis conditions, the auto giant is apparently forced to adjust its plans, significantly lowering the bar. Although it was previously reported that there was an intention to increase production in 2024 to 550 thousand cars – a third more than the current level. The growth was supposed to ensure the transfer of taxis to domestic cars and the renewal of fleets of government agencies.
It is obvious that in the current situation it will be extremely difficult to implement such ambitious plans. The fall in public demand during the crisis forces AvtoVAZ to lower the bar in order to avoid growing unsold inventories. (photo: AvtoVAZ)
