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. Last Updated: 07/27/2016

AvtoVAZ Sales in Germany Jump to Fill Market Niche

VedomostiLada sales in Germany were up 138 percent in the first half of 2009.
AvtoVAZ’s Lada brand, struggling in its home market, has shattered a German market growth record, with sales jumping 138 percent in the first half of 2009 compared with the same period last year, industry portal Avtostat reported, citing sources in Germany.

But the figures are no cause for celebration for the Tolyatti-based automaker, which is on the verge of bankruptcy and has halted production for the entire month of August.

AvtoVAZ’s share of the German market is still only 0.13 percent, however, or 3,169 cars of a total of nearly 2.4 million sold in the first seven months of the year, said Sergei Tselikov, director of Avtostat.

AvtoVAZ officially exports three models to Germany: the Lada Niva, the Lada Kalina, which is called the Lada 11-17 in Germany, and the Lada Priora, known there as the Lada 21-70, Tselikov said. The exported models are compatible with European environmental and safety rules and run on Euro-4 fuel.

Germany’s highly successful subsidized trade-in program has boosted demand for budget cars since it took effect in January, Tselikov said, adding that the Lada models were perfectly placed to cash in on the offer.

Russia’s Industry and Trade Ministry is working on its own program to encourage drivers to scrap their old cars for new, domestic models, but the plan isn’t expected to take effect until next year, Vedomosti reported earlier this month.