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Monday, October 24, 2016

Germans buy “Frets” as “design for adults”

AVTOVAZ sales in Russia are still falling – and more surprising are the reports that in the European market, they are growing quite significantly. Of course, don’t get too complacent: the absolute number of units sold in Germany “Lad” is small. But what makes Europeans more to love more recently, the infamous Russian cars?

For the first nine months of 2016, German dealers sold 1229 cars Lada that on 41% more than in the same period last year, data from state-owned companies Kraftfahrt-Bundesamt on sales of new cars in Germany.

“Condescending attitude to the products of AVTOVAZ in Russia do not always correspond to the real situation”

The leader of sales still remains the SUV “Lada 4×4”, which sold 847 copies (plus 15% compared to last year). The Russian giant has upgraded the former “Niva” – the SUV received a revised suspension that improved the comfort, reliability and handling. The demand for “Lada Grant” has grown almost three times – a year ago this model was chosen 132 of the client, over the first three quarters of this year, it has sold 377 of such vehicles.

Thus, AVTOVAZ for the first nine months was able to surpass their result 2015 on the German market, when for a whole year in the country was sold 1181 car brand. And at the end of 2016, the German buyers are in for another surprise. In Germany must start sales of sedan “Lada Vesta” which is sure to attract. new customers. “Vesta” needs to obtain the necessary export certificate for compliance with environmental standards “Euro-6”.

Of course, if you look at the millions of sales of cars in Germany, it becomes clear that the share of AVTOVAZ on the German market negligible. So, in just nine months, the Germans bought 2.5 million cars, respectively, the share of the Russian auto giant, less than 1%.

Who buys Russian “Lada” in Germany? “I think that Russian cars are buying so-called enthusiasts, collectors, who are attracted by the low cost of Russian products, as well as the difficulties associated with the purchase of spare parts and independent is often a service. For them it is “design for adults”, which can not regret using in heavy work, such as in rural areas. Hence the love for SUVs “Lada 4×4” and “Lada Grant” – suggests Kirill Yakovenko from “ALOR Broker”.

Do not forget that in Germany there live many our compatriots and immigrants from the former Soviet Union, are familiar with the products of AVTOVAZ, says Roman Tkachuk from Alpari. “SUVs “Lada 4×4″ buy also those people who are important, not the car’s appearance and performance. Sales of 4×4 for less than the competitors – Opel Mokka and Nissan Qashqai, but they won their niche thanks to the simplicity and low cost,” says the source.

The weakening of the ruble in recent years additionally ensured a stable demand for VAZ cars. A similar demand will be on “Lada Vesta”, says Tkachuk.

Cars of AVTOVAZ is now one of the cheapest in Germany. So, for Granta sedan in the basic configuration “Norma” with the engine of 1.6 (87 HP) and mechanics asking 6750 euros (about 467 thousand). Lada Niva in the initial version sold for 10.5 million Euro (726 thousand rubles).

But the native Russian market AVTOVAZ can boast of sales growth. Here they are, on the contrary, continue to fall in the crisis, cost of auto loans and falling real incomes of Russians.

However, the Russian economy has been a tendency to improve and lending began to grow again, eventually the rate of decline in new car sales slowed. But all these positive trends while passing by AVTOVAZ. “Although the volume of mark “Lada” is the leader in the mass segment, but the demand for it continues to fall to almost 7% for the first nine months of 2016. At the same time, sales of Ford during this period in Russia has increased”, – said Georgy Vashchenko of IR “freedom Finance”. In other words, in Russia the modern brainchild of AVTOVAZ until losing to foreign competitors, which have their factories here.

However, the condescending attitude to the products of AVTOVAZ in Russia do not always correspond to the real situation, Alexander Shustov, General Director of “Mani Fanny”. “In recent years, the efforts of Renault-Nissan, which controls together with Rostec Togliatti plant “Lada” for the main indicators have reached the European level of environmental friendliness, quality and technical equipment. They can compete on equal terms with the same budget “Koreans” in the first place with the popular KIA Rio, Hundai Solaris, and not only in Russia but also in foreign markets,” he says.

In any case, the Volga auto giant is now more important than ever to the growth strategy of exports of machinery abroad to at least partially offset by losses on the home market. The current head of AVTOVAZ, Nicolas Maure has set a goal – in the next, 2017, to increase exports by 50% and put abroad up to 60 thousand cars to 30 thousand this year.

Moore is famous in the world of the automotive industry in the first place so that is the “father” of Logan budget, which began producing on a forgotten company Dacia on the outskirts of Eastern Europe. “And now on the basis of the nodes of the Logan, which became one of the most widespread and popular of the popular cars produced in the modern Lada. And, in fact, if you look, worse than a Lada Logan, if the product meets all the same Renault-Nissan?” – draws the attention of the Pasha.


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