Russian car manufacturer AvtoVAZ has raised car prices by 2-4% since July 1 amid rising metal prices, according to the company's updated price lists, Interfax reports.
Prices for standard configurations of modifications of the most popular and most budget model Lada Granta have been increased from 1.9% to 2.3%. The Lada Vesta sedan has risen in price by 2%. Lada Xray and Largus modifications have risen more sharply - by an average of 3.6%.
Lada Niva and Lada Niva Travel (formerly Niva Chevrolet) went up by 2.2%. The three-door Lada Niva Legend (formerly 4x4) has risen in price by 2.1%, the five-door - by 4.4% at once.
The July rise in prices was the fourth for the company since the beginning of the year and is associated with an increase in metal prices. As the head of AvtoVAZ noted, steel occupies a significant percentage both in mass and in the cost of a car, therefore, prices for it affect the final cost of products. Previously, the company tried to negotiate with metallurgists on discounts on raw materials.
According to him, "steel occupies a significant percentage both in the mass and in the cost of the car", without specifying the indicators by shares, and said that in the current situation “AvtoVAZ will in no way be able to somehow swallow or compensate for the impact of the current and ongoing increase in steel prices. These prices have a significant component in the retail value of our products. We expect that their level will return, or at least stabilize somewhat, decreasing by the end of the year, "said More.
According to the analytical system SPARK-Interfax, the steel suppliers for AvtoVAZ are PJSC Magnitogorsk Metallurgical Plant (MMK), PJSC Novolipetsk Metallurgical Plant (NLMK), PJSC Chelyabinsk Metallurgical Plant (ChMK), Beloretsk Metallurgical Plant Combine Mechel (AO BMK). The car manufacturer is supplied with rolled metal products by PJSC Severstal, which announced in February that it had signed its first annual contract since 2012 with AvtoVAZ.
According to Rosstat data on the consumer price index, the cost of new domestically assembled passenger cars has grown by 7.09% since the beginning of the year, and for foreign cars - by 7.2%. In May, prices for cold-rolled steel rose by almost 17% compared to April.
Apart from AvtoVAZ, prices are also raised by other Russian automakers. So from July 1, prices for the entire model range of Skoda assembled in Russia (except for the Superb model) will increase in the range from 2.3% to 4% (27 thousand - 73 thousand rubles). Volkswagen cars will rise in price by 2-3%. Ford commercial vehicles will rise in price by 37 thousand - 69 thousand rubles, BMW announced an increase in retail prices by an average of 1.9%, Toyota Camry will rise in price by 2.5%, Hino and Hyundai cars - by 3-5% .