AvtoVAZ says it will stem its fall in sales this year as it launches four new models in Russia in the next 24 months.
The automaker saw a 19% drop in sales during the first two months of 2014 while Russia in general is starting to feel the effects of current market volatility as the effects surrounding the Ukraine situation continue to unsettle the economy.
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“When you have so much market share, it is difficult when you start to lose it [but], this year we will stop the erosion,” AvtoVAZ CEO, Bo Andersson, told just-auto at a Lada Granta Liftback launch event in St Petersburg.
“Four years ago, the company had 28% market share, so it is steep. New models are key. We also try to understand data more – 50% of our customers are unhappy with the dealer so that is why we launched ‘total customer satisfaction.’
“If a customer goes to the dealer and the dealer says: ‘It is not on the warranty’, the customer gets angry. That is why we want to talk directly to the customer.
“So an angry letter turn[s] into a very positive response. It is just beginning, but it is showing we care and we are more interest[ed] in understanding. Some understand that philosophy, others don’t.”
The AvtoVAZ chief added the company was “trying baby steps” in terms of exports, with Kazakhstan being the largest overseas destination, followed by Egypt, while the automaker also recently secured an order from Tunisia.
Other plans include Chile and Venezuela and, while Swedish dealers have been “relaunched” with distribution and import sought for Finland, “the key focus is Russia”.
Andersson was speaking to just-auto in front of St Petersburg’s Winter Palace – for many the origin of the Russian Revolution in 1917 – and the setting for a “rebirth” of the Lada Grant Liftback in the former capital.
“In the next two years, we will launch four new vehicles and we need a positive attitude towards the Lada brand, especially in St Petersburg,” said Andersson.
“With the launch of the Lada Granta Liftback, we are improving the best-selling vehicle in Russia [the], Lada Granta. We are giving it a more modern design with a new front and rear end [as well as a] better interior and exterior.
“We know a lot of people are happy and unhappy with the Lada but we will do everything we can to make the Lada better.”
