Avtovaz Group revenues increased by 4.8% in 2016

Avtovaz Group revenues increased by 4.8% in 2016

RusAutoNews.Com – Avtovaz Group has published the financial results of the year 2016. The high share achieved in Russian passenger cars market, in connection with the commercial success of new Lada models, the measures taken on restructuring, the pro-active reduction of costs and more favourable exchange rates have helped the improvement of the financial performance of the Group.

Despite the 12% shrinkage in Russian car market in 2016, Avtovaz has managed to increase its revenue to 184.9 billion rubles, which is equivalent to a 4.8% rise. High customer demand for the new Lada Vesta and Lada XRAY models, alongside a sensible pricing policy have become the main factors behind the revenue growth.

The retail sales of Lada in the Russian market amounted to 266,296 units in 2016 (down by 1% year-on-year). The share of Lada in the domestic market has risen by 2.2 points to 20.1%. 18,511 Lada vehicles have been sold in export markets (according to figures from 32 countries). Thereby, the combined sales of Lada in Russia and abroad have amounted to 284,807 vehicles.

The production volume of four brands (Lada, Renault, Nissan and Datsun) at Tolyatti and Izhevsk plants has reached 408,000 units, including the assembly kits.

The operational loss of Avtovaz Group before depreciation and the restructuring costs amounted to 15.6 billion rubles, which indicates a 36.8% year-on-year decline. (24.7 billion rubles). 25.0 billion rubles have been spent on depreciation and restructuring.

Avtovaz Group has ended the year 2016 with a net loss of 44.8% billion rubles, including the depreciation and restructuring costs.