In 2015, AVTOVAZ will invest 30 billion rubles in preparation for the launch of production of the Lada Vesta and Lada X-RAY models, according to Bo Andersson, speaking to reporters during an online conference.
"This year, investments in Lada Vesta and Lada X-RAY will amount to 30 billion rubles,” said the head of AVTOVAZ.
Mass production of the new model of the Lada Vesta sedan is scheduled to start on September 25, and in mid-December for the Lada X-RAY crossover. Bo Andersson pointed out that partner banks are primarily financing this year’s investment program.
The investment program of AVTOVAZ in 2014 amounted to 20 billion rubles.
“The largest part of the investments comes from Vnesheconombank, and we have to finance the other part with our own cash flow,” said Stefan Maurer, Acting CFO of AVTOVAZ.
While the Russian car market has been declining for more than two years, AVTOVAZ has increased its share of sales to about 20% of the market. For the first five months of this year, 114,213 Lada cars were sold in Russia, which is 29.8% lower than last year.
Bo Andersson also said that the company is actively developing relations with dealers. In the past two months alone, AVTOVAZ began working with 15 new dealers.
AVTOVAZ is one of Europe’s largest car manufacturers. AVTOVAZ currently has the capacity to produce about 800,000 cars and car kits a year under the Lada, Renault, Nissan, and Datsun brands.