The first year turned out to be difficult for Moskvich, but the beginning of a new one did not bring relief
In recent days, Moskvich has been spewing unexpected reasons: for example, it announced about a significant price reduction. This would be something to rejoice at, but, according to our automotive journalist Artem Krasnov, this is not at all connected with the well-being of the plant, but with dismal sales results.
The reduction in prices by Moskvich resembles a panic attack, because we have never seen a discount of 20-30% at once… and, perhaps, never. No, I remember the times when, in the wake of the booming market in 2012, dealers were clearing out warehouses, offering give or take such discounts, but they did not do it so clearly.
“Moskvich simply rewrote the price lists, immediately knocking off 500-700 thousand rubles. Was that even possible?”
It is possible when real sales increasingly diverge from the wishes of officials who cheerfully report on uncontrollable import substitution. Moskvich’s generosity is associated with the accumulation of large reserves of unsold cars. In 2023, the plant planned to produce 50 thousand cars, actually produced 31 thousand, only 13 thousand were registered (data from Electronic Passport JSC). That is, by the beginning of 2024, stocks exceeded annual sales. Yes, the plant and its dealer network are just getting up to speed, but still such an excess of cars suggests that the market has received them very coolly.
Registration statistics also include cars of government agencies with which Moskvich works (Ministry of Internal Affairs, Rosgvardia, some ministries)
The beginning of 2024 has not yet brought relief: 1,050 Moskvich cars were sold in February, and 1,740 in the first two months. In recalculation, the figures are plus or minus the same as last year, which are four times worse than the original plan. The expansion of the model range does not help either, especially since the second model, Moskvich-6, immediately looked overpriced.
“The March discount will certainly boost sales, but the measure looks like a gesture of desperation. At the end of last year, the company’s loss amounted to more than 8 billion.”
Why don’t Russians like “Muscovites”? They are produced at the former Renault plant, which they tried to hastily, for show, load up with at least some kind of production. There was no time to conduct long negotiations, so, apparently, they chose the partner who at that moment showed the greatest “compliance”. In principle, JAC cars are not that bad, but in China they are far from market leaders. And the front-wheel drive crossover JS4 (Moskvich-3) is positioned in its homeland as a low-cost airline, much like the pre-crisis Hyundai Creta in our country. That is, this is not the model that makes your hand reach for your wallet just by looking at it. Well, not for two million for sure. The car has not been adapted to Russian conditions, it does not have the best corrosion protection, and although the consumer qualities are not bad, they are not outstanding. In addition to this, there are hordes of competitors led by the Tula-assembled Haval Jolion.
During the test drive, Moskvich-3 showed itself to be a good, but also unassuming urban crossover
The electric Moskvich with a price tag of four million rubles in principle looked absurd, because they asked for a little more for the much more sophisticated and modern Zeekr 001. The Moskvich-6 liftback is made on the basis of the JAC J7, but if the latter last year sold under seven thousand, then Moskvich-6 – 211. Yes, it was sold only in the last months of the year, but even in recalculation it turns out to be a complete defeat, which means the problem is again in the price.
“Moskvich-6” is a liftback of the Skoda Octavia class. But the price of 2.626 million rubles (before the March adjustment) was higher than almost all competitors
The screwdriver assembly does not provide any particular advantages, and now Moskvich is switching to small-unit technology, which can be considered a plus for the plant: in the future, this promises a certain discount on duties and other goodies provided by the Ministry of Industry and Trade for manufacturers with increasing localization. Again, the bar set by Renault is still very far away: Franco-Romanian crossovers were stamped from Russian rolled stock with welding and painting of the bodies, the localization level was 70%, and the plant’s capacity reached almost 170 thousand cars per year. Compare this with the current thirty thousand, of which not even half were sold last year.
Small-unit assembly involves welding and painting of bodies. Moskvich is switching to it these days
Plan for this year – only 22 thousand, although 50 thousand were recently announced. That’s probably why Moskvich looking for a second partner besides JAC, which seems quite reasonable under the current circumstances. Another thing is that you need to look for it not according to the principle “whoever gives, we take from,” but taking into account the preferences and capabilities of the Russian audience. And finding such an option is not easy, because the Chinese side is not eager to invest money and effort into the unpredictable Russian auto industry. Moskvich is called a candidate for the assembly of Atom electric vehicles, but this project also raises many questions. Previously, the plant announced the development of its own platform for electric vehicles, but there are few specifics here.
The assembly of the Xcite X-Cross 7 crossovers has started at the former Nissan plant, but in fact these are only slightly redesigned Chery Tiggo 7 Pro
By the way, the previous experience of the Russian Automotive Industry shows that a hastily chosen model often turns out to be a failure. Government procurement may be a salvation for Moskvich: it is included in the list of cars for officials.
2024-03-16 04:00:46
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