OREANDA-NEWS. AvtoVAZ last week resumed its recycling program of cars. Conditions are the same: a discount of 50 thousand rubles for the purchase of a new car at the time of recycling of the old one and 40 thousand rubles by scheme trade-in. AvtoVAZ program will run until March 31st, wrote the newspaper "Vedomosti", citing its sources.

According to dealers, there is still the deficit for Lada cars, but on Monday the plant has left a corporate holiday, and January quotas for dealers are "more than enough". However, there is no increased demand - very few people know about the resumption of the recycling program, regrets one of the dealers.

Previous state program operated in September - December, the government allocated for it 10 billion Rubles in the form of subsidies. It was so popular that AvtoVAZ that took its limit of 2 billion Rubles earlier, which was determined for it by officials, continued the program at its own expense. Discounts were shared with dealers, informed the sources of "Vedomosti". In January interview with the newspaper "Kommersant", AvtoVAZ’s President Bo Andersson explained that at this stage the company has spent about 500 million Rubles. According to him, the company does not expect compensates for these costs. Dealers also do not count on it, says one of them.

According to the results of the previous program AvtoVAZ has already received 2 billion Rubles in subsidies from the total 10 billion Rubles, said Bo Andersson. With account of additional subsidies from the Government in 2014 to expand the state program of parc renovation (for a total sum of 2.9 billion Rubles) it is more than 2.7 billion Rubles, a source close to AvtoVAZ informed "Vedomosti".

In 2015, it is also likely that limits on state subsidies will be set, but their sizes are not determined yet, say workers of three automakers. For this reason, car manufacturers do not renew the recycling program. About the resumption of the program, in addition to AvtoVAZ, it was also announced only by "Sollers" - for cars UAZ and SsangYong. According to federal officials, including the reasons for the delay of other participants - the saturation of warehouses that have been devastated by the excessive demand for cars, observed in November - December 2014 due to the fall of the ruble.

Recycling program will support sales of AvtoVAZ, say the analyst of "VTB Capital", Vladimir Bespalov, executive director of the agency "AUTOSTAT" Sergei Udalov and dealers. AvtoVAZ produces low cost cars and discounts of 40-50 thousand rubles for their buyers are the most noticeable, they explain.

In 2014, the Russian Lada sales fell by 15% to 387,307 units, all passenger cars and light commercial vehicles - by 10.3% to 2.49 million units, according to the Association of European Businesses (AEB). This year the market could fall by another 24% to 1.89 mln units, according to the AEB. AvtoVAZ is more optimistic: in its estimation, the Russian market of passenger cars could be reduced by 19% to 1.9 million units. Planned sales of Lada are not revealed by the company, but it predicts a 15-20 per cent increase in total sales (ie up to 504,965-526,920 units).

AvtoVAZ plans to bring the share of the Russian market up to 20% or more in 2015, said earlier, a source close to the plant (at the end of 2014 - 16.6%). In this case, it will be sold over 380 thousand cars Lada, ie approximately at the level of 2014. This is quite possible, agree Mr.Bespalov, Mr.Udalov and dealer of AvtoVAZ.

AvtoVAZ hopes that total sales will help it to increase the localization of Lada cars (now it is 82%) and launch of two new products to the market - Lada Vesta and Lada Xray. Due to the high localization AvtoVAZ has more opportunities to keep the prices as opposed to foreign cars, notice Mr.Bespalov and Mr.Udalov.