The head of AvtoVAZ spoke out against government procurement of Citroen and Hyundai

In an interview with the RIA Novosti agency, Maxim Sokolov made it clear that he does not consider the government order for “cars with attached nameplates” fair. The head of AvtoVAZ considers the products of Kaiyi and Citroen, as well as those produced from the remnants of Hyundai (Solaris), to be hidden imports: according to the top manager, only truly localized models should be purchased for the needs of the state.

Maxim Sokolov called government procurement a non-fixed support measure. The authorities should stimulate the production of only highly localized products, and we are not necessarily talking about Lada: Haval can count on state support. The head of AvtoVAZ praised this Chinese manufacturer, but he considers the competition with other brands from China to be unequal.

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Chinese brands have three main advantages over Lada. Firstly, the market capacity varies by 60 times, which makes it possible to reduce the cost of components. Secondly, the Celestial Empire has a low lending rate: a maximum of four percent. Finally, Russia is under severe sanctions pressure, which is affecting work.

Avtotor (which also produces Kaiyi cars) expressed the opinion that AvtoVAZ itself is to blame for competition with Chinese brands. Representatives of Lada, in turn, believe that the “screwdriver” production of cars and electric vehicles should not be subsidized by the state.

Russian-Chinese badge engineering