"We will strictly control this measure": AvtoVAZ announced the introduction of maximum permissible prices at Lada dealers

AvtoVAZ intends to set maximum prices for the sale of Lada cars in the Russian dealer network, said the head of the company Maxim Sokolov.

As Sokolov said on the sidelines of the Innoprom exhibition in Tashkent, the manufacturer "is deploying a vector of policy in the field of car sales."

"We have already prepared an appropriate program with a control mechanism that we will implement in relation to dealers - we set marginal prices. That is, now dealers, having received a car from AvtoVAZ at the recommended price, will not be able to sell it above the marginal price, which will also be set by AvtoVAZ, "RIA Novosti quoted him as saying.

According to Sokolov, the possibility of applying these measures to the company is provided by antitrust legislation. He added that now the company has 308 dealerships, 11 of which are their own, and the rest are private.

"We will establish this measure, fix the additional agreement and tightly control, up to the termination of dealer agreements," Sokolov stressed.

He also added that the innovation will come into force in May, after the increase in prices for Lada cars by 2%.

Also at the russian.rt.com, the head of AvtoVAZ said that the company is considering the option of assembling Lada Vesta in Uzbekistan

Auto expert Igor Morzharetto told the RT correspondent that AvtoVAZ had previously adhered to similar rules regarding the implementation of budget models.

"Dealers couldn't make much money on them, because it's a social moment. For cars that are in short supply, which were last year - for example, on Vesta - there were no such restrictions, "said Morzharetto.

At the same time, the expert believes that in the face of a shortage of cars, it is impossible to restrain the rise in prices.

"In principle, everything that AvtoVAZ produces, everything is sold. And even the stocks that we have will be sold off," he said.

In turn, Vice-President of the National Automobile Union Jan Heitzer expressed the hope that AvtoVAZ will methodically work with dealers. He noted that the positive effect will be noticeable if dealers refuse to impose additional options and conditions for purchasing a car.

"Without strict additional markups, all these markups will be voluntary, not voluntary-compulsory. Then it will really stimulate the market," the expert said.

It should be noted that cars manufactured by AvtoVAZ retain their traditional leadership in the Russian market and strengthen their positions. According to the AUTOSTAT agency, at the end of 2022, the share of cars under the Lada brand in the market amounted to more than 27%, while a year earlier this figure was slightly more than 22%.

It also follows from the data of AUTOSTAT that according to the results of the first quarter of 2023, AvtoVAZ occupied almost 35% of the Russian market. The closest indicator was demonstrated by the Chinese brand Chery, which occupied more than 11% of the market during this period.

Meanwhile, earlier it became known that AvtoVAZ plans to start production of cars at the former Nissan plant in St. Petersburg in the second quarter of this year.

In November 2022, FSUE NAMI acquired all the Russian assets of the Japanese automaker Nissan, including the plant in St. Petersburg. Subsequently, Deputy Prime Minister, head of the Ministry of Industry and Trade of Russia Denis Manturov said that FSUE NAMI would transfer to AvtoVAZ the acquired Russian assets of the Nissan automaker.