/ world immediately information/ Renault makes critical requests on the Russian market; the financial downturn doesn’t deter buyers from growing their shares in Lada. After years of decline, the market has began to revive.
The administration of Renault-Nissan is satisfied that the market in Russia will develop. Over time, the Russian market could take the primary place in Europe, overtaking the German one.
(rus.ez.)
Renault desires to make a revenue in Russia once more
Russia and the auto trade – incompatible issues?
After years of collapse, the Russian market is beginning to revive. The monetary figures from the start of the 12 months present that Renault Group vehicles (together with Lada) are actually properly positioned to make the most of this surge available in the market. The group has all the mandatory levers to extend income on this tough market.
Renault is betting closely on the Russian market to such an extent that its decline has not scared off buyers or prevented it from growing its stake in Lada. It appears to be like just like the French group is lastly rising from its tough scenario.
Nicolas Maure, head of Renault’s Russian subsidiary since 2016, reassured everybody by saying this weekend that the corporate had managed to mitigate short-term liquidity dangers.
“We pay our suppliers on time, our intermediaries pay us on time – we now have no short-term liquidity dangers,” Mor stated on the sidelines of the Financial Discussion board in St. Petersburg.
Losses have been considerably decreased
Based on Nicolas Maure, AvtoVAZ has efficiently eradicated its internet loss. It has already been decreased by 40% within the first two years and decreased threefold within the first quarter to 45 million euros. Working losses have decreased sixfold (16 million euros).
All this was made attainable by the resumption of gross sales. Turnover elevated by 20% within the first three months of this 12 months to 720 million euros. “The outcomes are considerably higher than final 12 months,” says Nicolas Maure, who hopes for a rise in income beginning in 2018. “We’ll see what occurs this 12 months,” he provides, with out eager to get forward of himself and hoping for a great shock when it comes to gross sales within the second quarter.
Because the starting of this 12 months, AvtoVAZ has been actively benefiting from the market restoration and even growing its market share. Whereas the nationwide market grew by 2.6% within the first 4 months, Lada gross sales elevated by 8%, in accordance with the Affiliation of European Companies (AEB). Renault gross sales (4th place after Kia and Hyundai) elevated by 14%. In whole, the Renault-Nissan Alliance occupies virtually 35% of the Russian market. Final 12 months, this determine was 33%.
Market to develop in 2017. Renault hopes for one of the best
The truth is, the French firm could be very happy with the truth that it managed to stabilize gross sales within the nation. Whereas in 2016 the monetary 12 months available on the market ended with a remaining determine on the inventory change (-11%), Lada recorded a fall of 1%, and Renault gross sales of vehicles fell by solely 3%.
The AEB believes that the market may develop by 4% this 12 months. Nicolas Maure expects progress of 5-10%. Nonetheless, Russia, with its 1.5 million registered vehicles, continues to be removed from the document of 2012-2013, when about 3 million vehicles had been offered.
However the French should not relying on a home market upturn alone to return to revenue. Renault has launched main tasks on the historic Lada plant in Togliatti to spice up its productiveness. The plant must work exhausting to return to the corporate’s requirements. Till not too long ago, the principle Lada plant, whose manufacturing capability can attain 1 million models, confirmed a productiveness stage 25% decrease than the Dacia plant in Romania.
AvtoVAZ underneath stress from competitiveness indicators
The manufacturing administration downside has been exacerbated by Renault’s shareholding enhance final winter. The French now personal 70% of the shares, whereas Nissan and Rostec personal 30%. Renault now consists of the Russian firm’s accounts in its monetary statements. So there isn’t any longer any speak of shedding cash.
Over time, this market may take first place in Europe, forward of Germany. In Russia, 30% of the inhabitants owns vehicles (versus 80% in Western Europe), and 50% of those vehicles are over 10 years outdated… Carlos Ghosn, head of the Renault-Nissan Alliance, is satisfied that the Russian market is on the verge of progress.
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