OREANDA-NEWS. June 01, 2010. AvtoVAZ plans to sell 573,000 cars this year, relying on the sale of 'classics' such as the LADA. Therefore, the company plans to sell 57,000 cars/month until the end of this year, which corresponds to its peak sales in April. AvtoVAZ sold 371,000 during 2009, reported the press-centre of OTKRITIE Financial Corporation.

View: In our opinion, this sales plan is too optimistic. AvtoVAZ sales will drop sharply in July, unless the 'cash for clunkers' program is reinstated. AvtoVAZ will sell 195,000 cars due to clunckers program in this year.  We expect AvtoVAZ to post sales of 430,000 vehicles in 2010.

Valuation and Action: We view the news as neutral for AvtoVAZ. Our valuation models and recommendations for domestic car producers are currently under revision.