Russia's largest car manufacturer AvtoVAZ is expected to switch to a one-tier sales system that eliminates wholesale dealers from 1 January, the company said.

The one-tier system may help cut expenses and risks as well as improve the management of the dealer network, the company told the Prime-Tass news agency.

Currently AvtoVAZ has a two-tier sales system that involves direct wholesale dealers and regional dealers.

Under the new system AvtoVAZ plans to create joint ventures, which will integrate wholesale dealers into the regional dealer network.

AvtoVAZ plans to conclude direct agreements with the joint ventures that will stipulate sales quotas equivalent to the previous volumes of car sales by dealers.

AvtoVAZ said earlier its sales increased 1.4% year on year to 530,000 cars in January-October.