MOSCOW - The devaluation of Russia's ruble has revived the market for Lada cars.
A 22 percent price cut in July and a wave of panic buying in August has helped AvtoVAZ get rid of a stockpile of 100,000 cars. AvtoVAZ said it had resumed working two shifts and will increase daily production to 2,350 cars from 1,300 cars.
Consumers see cars and other goods as a hedge against devaluation. This phenomenon has been seen in Russia before, in 1994-95 and again when the ruble was revalued in December 1997.
Earlier this year, AvtoVAZ slashed its 1998 output target by 125,000 cars to 623,000.
Foreign automakers at the Moscow auto show last week said the devaluation had not changed their plans.