Wide advertising of measures of state support of the car market became one of the reasons of critically low demand for AVTOVAZ production in January as its dealers consider.
Since January, 1 till January, 24th 12 thousand Lada cars were sold in the Russian market whereas in January last year the manufacturer managed to sell 29110 cars. Thus, to reach this index "AVTOVAZ" should sell 17 thousand cars during last week of the month, the agency Reuters writes.
According to dealers, low demand is caused not only by long New Year holidays but also by pent-up demand in connection with expected measures of state support. So, some buyers of budgetary cars waits for renewal of the program of auto crediting which has ceased to work since the beginning of 2010 because of the fact that it has not been prolonged by the government in time. They informed in Ministry of industry and trade that this program should be renewed the next weeks. According to the data of Ministry of industry and trade, in 2009 more than 33.5 thousand cars or about 70% of sold cars under the program of preferential auto crediting fell on the brand Lada. The second factor is the promised program of old car recycling with a bonus in 50 thousand rubles on purchase of a new car which will start to operate since March, 8th and demands for it will be accepted since February, 1st.
However, the direct competitor of "AVTOVAZ" - Renault, which produces a budgetary model Logan in Russia, has not noticed catastrophic recession of sales. But low demand on Lada in January does not frighten dealers as now, in their opinion, the pent-up demand is formed and the next months they hope to compensate present sales fall.

| AUTOSTAT |