The revenue of AVTOVAZ has increased by 17.6% within the first half of 2017

The revenue of AVTOVAZ has increased by 17.6% within the first half of 2017

RusAutoNews.Com – As announced by the company press office, AVTOVAZ has sold 140,231 LADA automobiles in Russia within the first half of 2017, which indicates a 13% year-on-year rise (up from 124,353 in 2016), according to the company press office. The share of LADA in Russian automobile market (cars + LCVs) has increased by a percentage point to 19.5%. The achievement is largely due to the growing sales of the new models of the brand – LADA Vesta and LADA XRAY, as well as the expansion of their model ranges (new versions, new equipment). Five LADA automobiles are amongst the Top-20 best-sold models: LADA Granta (2nd), LADA Vesta (3rd), LADA XRAY (9th), LADA Largus (14th) and LADA 4×4 (17th).

AVTOVAZ has increased LADA exports (including car kits) by 76% in comparison with 2016. This growth is mainly due to the increase in the volume of large-scale kit assembly in Kazakhstan and the start of LADA Vesta sales in several foreign markets. In addition, AVTOVAZ has sold 48,487 Renault, Nissan and Datsun brand automobiles to its Alliance partners.

As a result, the revenue of AVTOVAZ has risen to 102 billion rubles (approx. $1.7 billion), which is equivalent to a 17.6% increase, compared to the first half of 2016. The group has almost reached the level of operational break-even with a result of -4.0 million rubles (an improvement of 9 billion rubles year-on-year). The net profit of the group has remained in negative figures, amounting to -4 billion rubles (an improvement of 23 billion rubles). Moreover, AVTOVAZ has drawn attention to continued risks that could adversely affect the company’s financial results in the second half of 2017. In particular, an increase in the purchasing prices for raw materials and the deterioration of foreign exchange rates. The company will stick to its restructuring plan, in order to mitigate the effects of these risks.