AVTOVAZ COMPANY MAY LOSE MARKET OF KAZAKHSTAN

The work of assembly rooms of the Asia Auto plant, located in Ust-Kamenogorsk city, has been terminated since November 2020. And already in February 2021, the authorities of the republic presented to the enterprise a strict demand to return about 174 billion tenge (30 billion rubles) to the treasury.

The funds were received by the company in the form of privileges under contractual obligations, which the plant never fulfilled. As a result, the production of Lada cars was discontinued, and the issue of customer support was open for discussion.

The company Asia Auto has existed in Kazakhstan for almost 20 years. The enterprise, in the activities of which about $ 15 million was invested at the first stage, began operations in December 2002.

The main beneficiary of the company is Anatoly Balushkin, who owns 67.9% of the company's assets.

According to various sources, the plant, where the assembly of Lada cars was actively underway, is currently undergoing staff reductions. The head of the East Kazakhstan region, Danial Akhmetov, told reporters that by March 10, about 2 thousand people working at the plant would be dismissed.

The claim of the relevant republican ministry on the payment by the company of a significant amount as a debt to the budget was considered and satisfied by the district economic court of the Kazakhstan capital. The reason for this was the violation of the plant's obligations to put new lines of industrial assembly of cars into operation.

Experts note that the closure of the enterprise had a negative impact on the market share traditionally occupied by the Lada brand in Kazakhstan.

In January 2021, the company from the first place in the ranking of sold cars dropped to the fourth position, having reduced sales by 37%.

According to the results of sales last year, Lada cars also took the second place, leaving the Hyundai brand ahead. For one of the main export markets of AvtoVAZ, which Kazakhstan has remained for a long time, such a decrease in sales could have serious and long-term consequences.