AvtoVAZ production results in 2023 and plans for 2024

AvtoVAZ in 2023 increased production by 33%, to 374 thousand due to the simplest models Lada Granta and Niva. In total, the domestic concern sold 352.6 thousand cars, occupying, as the head of the company Maxim Sokolov noted, a “dominant position” in the market. However, AvtoVAZ is increasingly concerned about competition from Chinese brands, which, despite increasing recycling fees in 2023, occupied 80% of the Russian market in monetary terms.

AvtoVAZ in 2023 increased production by 33%, to 374.077 thousand vehicles. The company called this a record volume for ten years. However, this assessment does not take into account the models produced by AvtoVAZ until February 2022 from Renault (former co-owner of AvtoVAZ) and its alliance partner Nissan.

According to the head of the company, Maxim Sokolov, AvtoVAZ plans to produce 500 thousand cars in 2024. The concern’s product line, which currently includes the Lada Granta, Vesta, Niva models, will expand: it is also planned to launch an extended version of the Vesta (Lada Aura) and an electric Largus. “Aura will hit the production line in September,” said Mr. Sokolov.

In the Russian car market, the concern reached a share of 35% in 2023, having sold 352.57 thousand cars. This is 87% higher than in 2022, the company said. Of this volume, 138.5 thousand cars are corporate sales. The brand “became dominant in the market” in 2023, said Maxim Sokolov. At the same time, sales in December were lower than in the previous two months, amounting to 33.05 thousand cars.

According to AvtoVAZ estimates, the market for passenger cars and light commercial vehicles in 2023 grew by 45%, to 1 million units. This data does not include parallel imports.

According to Autostat estimates, the entire market of passenger cars alone (including parallel imports) amounted to 1.06 million units, of which 12% were supplied not through official channels.

Maxim Sokolov in his speech once again pointed out the intensifying competition with foreign brands. “The competition is even stronger if we evaluate not in units, but in monetary terms,” he said.

According to his estimates, 80% of the market in monetary terms are Chinese brands, and AvtoVAZ has the task of resisting this “expansion, aggression.”

At the same time, the main volume of cars sold by the automaker in 2023 is the most budget-friendly Granta (206,116 thousand) and Niva (92 thousand). The mid-mass segment model Vesta, production of which began in Togliatti in the middle of the year, accounted for only 49.27 thousand vehicles. At the same time, brands from China are mainly sold in more expensive segments of the car market, primarily SUVs.

A year ago, Maxim Sokolov, summing up the results of 2022, insisted on the need to increase recycling collection to increase the barrier to imports and increase the output of less localized players in the Russian Federation. The government eventually increased the recycling fee from August 2023.

Now the head of AvtoVAZ thanked the authorities for this step, but stated that this “cooled the ardor” of the company’s competitors “only for a short time.” He added that discounts at dealerships in the AvtoVAZ segment already exceed the recycling fee. Note that discounts on cars are usually provided by dealers at times of slowdown in demand, including this fall after the Central Bank increased the rate.

Export of Lada cars in 2023 amounted to 6.5 thousand cars versus 17.2 thousand in 2022. Back in the summer, Mr. Sokolov expected to export 10–15 thousand cars in 2023.

Olga Nikitina