AvtoVAZ is already starting to lobby for Russia’s ‘clunkers’ scheme to be extended beyond November.
The firm – which is accounting for around 80% of early sales on the scrappage incentive scheme – believes it could become a profitable company if the government prolonged the programme.
At present, the program, which was launched on March 8, is scheduled to remain in operation until November 1.
AvtoVAZ’ sales have increased and cash flow has become positive for the first time in 18 months thanks to the cash for clunkers program, the company’s President Igor Komarov said last month.
The government expects about 200,000 new cars to be sold this year under the programme.