AvtoVAZ logs RUR2.6 billion net loss in first half of 2013

Article by Anita Panait, on October 4, 2013

AvtoVAZ, the largest auto manufacturing company in Russia, posted RUR2.6 billion ($80.7 million) in net losses in the first half of 2013, compared to RUR27.4 billion in profits in the same period in 2012. The carmaker’s dismal financial performance in the first six months of 2012 has been attributed to the economic slowdown in Russia, which in effect resulted to the slump in vehicle demand in the carmaker.

New-car sales in Russia have dropped for six straight months. The Association of European Businesses (AEB) lobby group recently revised downward its sales forecast for the full year 2013 to 2.8 million vehicles, reflecting a drop of 5 percent year-on-year. While this year’s first-half net loss came from lower car sales and increased investments in new models, profit in 2012 was heavily boosted by a non-cash gain from discounting the cost of future debt payments.

As a result of lower sales, AvtoVAZ logged a 7-percent fall in revenue year-on-year to RUR83 billion. The Russian carmaker had earlier said that its sales in Russia slid 10 percent in the first half of the year to 226,729 units. Western carmakers like Ford Motor Co., General Motors and Fiat Group have made heavy investments in Russia in the past years, wagering that the vehicle market will surge as owners update their units.

Topics: avtovaz, loss

If you liked the article, share on:

Comments

Recommended

British luxury automaker Aston Martin celebrates its new partnership with the Henley Royal Regatta sporting event by designing a one-off DB11 sports car that they recently revealed. The car explores...
by - June 28, 2017
The 2018 Dodge Challenger SRT Hellcat as we know, is the Demon's less powerful sibling, and there’s nothing wrong with that. But have you ever imagined how it would look...
by - June 28, 2017
Sorry Uber, but Handsome Cabs taxi company has something no one else can offer - a Lamborghini Huracan that can take their clients from Point A to Point B. This...
by - June 28, 2017
BMW saw a potential oil leak on the new M760Li, prompting them to recall the said vehicle last April. Today, a little over two months after issuing the first recall,...
by - June 28, 2017
Without a doubt, the SUV segment is getting increasingly more saturated. This month alone, we were greeted with city-oriented SUVs from the Kia Stonic to the Hyundai Kona, and now...
by - June 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries