Ukrainian budget car makes comeback
Nov 12, 2008 10:50:18 AM
Ukrainian carmaker UkrAvto has said it will continue making its budget Slavuta range next year, pointing out the move was intended to counter the negative sales trends in the local car market and with local consumers finding it increasingly difficult to secure auto loans.
Recession of sales on the domestic automotive market, deficite and sufficient rise in credit resources, will result, for sure, in "polarization" of automotive market: demand will be shifted to the sector of popular vehicles and to premium-vehicles, where sales on credit had never occupied large portion. In this situation the consumer often reviews the version of vehicle purchase by available cash resources, not attracting the loans. Taking these facts into account, UkrAvto took the decision to proceed with Slavuta production next year.
“Slavuta is the most favorable proposal nowadays in the niche of popular vehicles. Decision to reserve its production the next year was dictated by market conditions", said Oleg Papashev, Vice President of the UkrAvto Corporation.
Recently the Zaporozhye Automobile Building Plant, included to the structure of UkrAvto Corporation, announced about its intention to diversify the channels for promotion of its products due to situation arisen at domestic market. Inclusion of Slavuta into the production plan for next year is one of the measures that should minimize the impact of Ukrainian crisis on the company’s activities.
Sources
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