OREANDA-NEWS. May 14, 2010. In April, domestic car sales rose 28% compared to March levels, amounting to 163,299 units, according to AEB's monthly report. AvtoVAZ car sales rose 58% MoM in April , while GAZ Group sales advanced 27% over the previous month. Sollers’ sales were up 44%. We view these figures as positive for domestic car producers, reported the press-centre of OTKRITIE Financial Corporation.

View:  The ‘Cash for Clunkers’ recycling program has proven its effectiveness in view of the sharp increase in domestic car sales, particularly Lada sales, which saw a 58% MoM rise (70% MoM in March). Since the beginning of the recycling program AvtoVAZ has continued to increase market share, with its sales returning to pre-crisis levels. It is also a positive development that the increases were not only in the low price segment. We expect rapid growth in the sales of domestic models through the end of the summer.

Valuation and Action: We view these figures as positive for domestic car producers, particularly for Sollers and AvtoVAZ. Our valuation models and recommendations for domestic car producers are currently under revision.