22 Feb 2024 12:39

Moskvich RAS net loss increases 3.6-fold in 2023 to 8.6 bln rubles

MOSCOW. Feb 22 (Interfax) - JSC Moscow Automobile Plant Moskvich (formerly owned by Renault) saw its RAS net loss increase 3.6-fold in 2023 to 8.6 billion rubles, company financials said.

Revenues increased 38.9% to 59.2 billion rubles, as did cost of sales, by 59.2%, to 57.5 billion rubles. Gross profit totaled more than 1.6 billion rubles, a drop of 74.6%.

Total debt increased 2.5-fold last year to 42.6 billion rubles. Long-term liabilities doubled to almost 7 billion rubles, primarily because of a 5-billion ruble increase in the indicator of long-term borrowed funds. Short-term liabilities increased 2.6-fold to 35.6 billion rubles. The company raised almost 19.4 billion rubles in short-term borrowed funds last year, and increased accounts payable almost a quarter to 24 billion rubles.

Moskvich produces three models: the Moskvich 3 urban crossover, the Moskvich 3e electric car and the Moskvich 6 sedan. Autostat previously reported that Moskvich shipped about 19,000 cars to dealers in 2023, 15,300 of which were sold onward to customers.

The plant is under the parity management of the Moscow government and Kamaz PJSC . KAMAZ General Director Sergei Kogogin in a recent interview with Vedomosti said that Moskvich's break-even point comes with 40,000 vehicles produced and sold per year. Meanwhile, the company is targeting production of 30,000-35,000 units in 2024. When the newspaper asked if it is advisable for Moskvich to strive to produce the 50,000 units previously announced for 2024, Kogogin replied, "No - precisely because it is not necessary. The break-even level is achieved at 40,000 cars per year." He also said that Moskvich's Chinese technology partner (JAC concern) is "far from the largest automobile corporation in China."