UAZ has gained its price
The Ulyanovsk Automobile Plant is breaking records for the rate of price increases. On Friday, UAZ cars rose in price by an average of 7.5%. This is the third increase in the selling price over the past two months.

New prices for UAZ cars will be introduced on November 1. The UAZ-2206 ("loaf") minibuses will rise in price the most - by 10%. UAZ-3303 trucks and its modifications will increase in price by 5-6%, and UAZ passenger cars - by 5-8%. For example, dealers will receive the most popular, so-called “commander” SUV UAZ-31512 with a canvas top at a price of 77,600 rubles. instead of the previous 72,200 rubles. The only thing that remained unchanged was the cost of the UAZ-3160 jeep with a 2.9-liter engine from Volzhskie Motors. Wholesalers can buy this car for 232 thousand rubles.
The current price increase is the third since September 9. Since then, UAZ cars have risen in price by more than one and a half times. The commercial department of UAZ told a Kommersant correspondent that the increase in car prices was caused by the rise in prices of components. Deputy General Director for Economic Affairs Sergei Babushkin said that engines and rolled metal have become more expensive.
The increase in prices for components is due to UAZ’s attempts to abandon barter operations. Until recently, the plant sold up to 80% of its production through barter. Suppliers were happy to charge for components in the form of finished cars and sell them at dumping prices. However, in the summer, UAZ almost halved the volume of barter transactions. This reduced the supply of cheap UAZs and the demand for Ulyanovsk cars fell. The fall in demand led to lower production volumes and lower orders for components. To maintain the profitability of production, related companies were forced to raise prices for components (for example, the Volzhskie Motors plant did this). This led to another round of prices for finished products.
It can be assumed that this increase in selling prices is not the last. The volume of barter transactions at the plant is quite high, but the company’s management is trying to reduce it (the plant needs “hard” money to pay the labor collective and the budget). In the future, UAZ plans to sell 100% of its cars for money. This will allow us to control the price situation on the market, because the decrease in demand for supplies of cars from the factory was provoked by dealers selling cheap “barter” cars. However, it will not be easy for the plant to realize its plans. Although its products, especially trucks, remain very popular (see diagram), another price increase will lead to the fact that some buyers will prefer equipment from other factories - for example ZIL or GAZ.
ROMAN J-ZHUK, NIKOLAI J-IVANOV

Newspaper "Kommersant" No. 201 dated 02.11.1999, page 7