AvtoVAZ revenues sharply reduced in Azerbaijani market

Baku. 15 November. REPORT.AZ/ Vehicle export sector, one of the saving in the automotive industry of the Russian government, is still unable to cope with the task.

Report informs citing Kommersant, in 9 months of 2016, revenues of one of the industry's leaders, AvtoVAZ from export fell doubled by 45% in annual comparison. Supply to Kazakhstan, which is the biggest export market of the company, decreased by 71%.

Sale of Lada model cars decreased in Azerbaijani market, too. Sale of the model cars in the local market fell by about two-fold, namely to 1 500. However, sale of Lada increased to 108% - 1 300 in the Ukrainian market, also, the brand's market share increased to 2.9% from 2%. Even greater export growth of AvtoVAZ export observed in Europe - vehicles registration increased by 75% - to 3 100.

Notably, AvtoVAZ revenues from export fall rapidly. Amount of the revenue decreased from 7.77 billion RUB to 4.27 billion RUB over the last year, which means decline from 6.2% to 3.2% in the total revenue structure.

The document states that if demand decreases, the company will change its export strategy.