Residents of Kazakhstan are faced with LADA cars deficiency, which are still recently produced at the local factory. The specialists of the Russian newspaper edition told about the plans of the Patriotic Mark to return to the largest export market.
Recall that AvtoVAZ remained without local production in Kazakhstan, since the local partner of Asia Auto ceased production of the Russian brand cars back in November 2020, due to the violation of the obligations under Promsbork. The "RG" edition reminds that the enterprise in Ust-Kamenogorsk is engaged in a large-sized assembly of cars, but it was supposed to switch to full-scale production including welding and painting of machines. Since 2015, the construction of the company's full cycle "Asia Auto Kazakhstan" company and 25% belongs to AvtoVAZ. Initially, it was planned to launch the factory in 2018, but the start of production was repeatedly postponed and still did not take place, although the plant is almost completely ready.
The Government of Kazakhstan considered this non-performance of the conditions of industrial assembly as a result of which Asia Auto should pay a penalty in the amount of 173.9 billion tenge, which is approximately 30 billion rubles. In addition, the plant has deprived the tax breaks and compensation for the scourge. This led to the fact that the enterprise stopped his work, and about 4 thousand workers were reduced. The further fate of the enterprise and the new plant "Asia Auto Kazakhstan" is still not solved. The director of strategic planning of the Kazavtoprom Union Arthur Miskaryan in a conversation with the publication "RG" said that the stop of the Asia Auto plant was deprived of car buyers in the lower price segment, because the brand was essentially withdrawn from the market circuit. Due to the decline in competition and the lack of cars, there was a noticeable market growth, and cars rose by about 16-20%.
The press service of AvtoVAZ reports that carefully monitors the situation in Kazakhstan and is already looking for alternative ways to preserve the presence of car brand in the market. Representatives of the brand promise to tell about the decisions made in the near future.
AvtoVAZ and Asia Auto cooperate since 2003, after Kazakhstan's barrier fees were introduced and at the enterprise in Ust-Kamenogorsk began the release of LADA models. Thanks to the local production, AvtoVAZ managed to maintain a price advantage over competitors. At the moment, the reserves of LADA cars released on Asia Auto, are approached by an end. This will lead to the fact that the Russian brand will begin to lose its position in the market of the Kazakhstan market. Last year, Lada lost the leadership of Hyundai, and at the end of the two months of the current year and at all sank to the fourth line in the sales ranking behind Hyundai, Chevrolet and Toyota. Arthur Miskaryan notes that in these conditions the Chevrolet brand's position is actively increasing, because brand cars are collected in the republic from components supplied from Uzbekistan. Direct import could be a solution to preserve the presence of LADA, but it can hardly hit the price attractiveness of the car brand.
Leading expert UK "Finam Management" Dmitry Baranov said: "If the stop of the assembly of Lada models in the republic will delay, and their imports will not be or it will be small, then the place of the Russian brand can take other manufacturers of budget vehicles, so the local car market is unlikely to significantly decrease "
But it should not be noted that the suspension or decline in sales of LADA cars on the growing and promising market of Kazakhstan can negatively affect the export potential of the AvtoVAZ itself, because the republic was the largest foreign market. Analysts calculated that last year more than 40% of export cars were intended for Kazakhstan. Dmitry Baranov believes that despite the fact that the Kazakhstan market for AvtoVAZ is extremely important, the Russian market is basic for the brand. Companies need to preserve the championship in the Russian Federation and remain competitive against the background of other brands. Car sales growth in Russia can compensate for AvtoVAZ problems with the production of its products in other countries.