AvtoVAZ positions its competition with Chinese automakers as a core element of its strategy to capture a larger slice of the Russian automotive market. This perspective emerged in an interview conducted by the AvtoVzglyad portal, where Dmitry Kostromin, the deputy head of sales and marketing at the domestic carmaker, laid out the competitive landscape as observed from the company’s vantage point.
According to Kostromin, Geely is making steady inroads in Belarus, while Haval is gaining traction in the Tula region. When the discussion turns to market share among Chinese brands operating in Russia, Kostromin identifies Chery as a primary rival. He notes that Chery is developing across multiple segments, spanning from niche models to higher-end, even luxury categories, thereby broadening its appeal and market footprint in the country. This multi-segment approach is seen as a strategic move that intensifies competition for established players like AvtoVAZ.
Regarding the Moskvich 3, a model based on the Chinese JAC platform, Kostromin was clear in his assessment: AvtoVAZ does not view it as a competitor. He explained that the company monitors the missteps and strategic moves of other players to learn and improve, yet it does not fear healthy competition. He emphasized that competition will always exist in the market, and that domestic players should respond to it with resilience rather than retreat. The mindset, he suggested, should be to observe, adapt, and push forward rather than to count on protection or complacency.
Market data from the 2022 results of the Association of European Businesses in the Russian Federation provides context for AvtoVAZ’s position. The association reported that AvtoVAZ held a 27.4% share of the Russian new-car market, while Chery, including its collaborations with Exeed and Omoda, held a 7.8% share. This snapshot highlights the relative scale differences and the potential room for growth that AvtoVAZ sees as a driver for ongoing investment in product lines, manufacturing capabilities, and brand positioning. The numbers also underscore the competitive challenge posed by Chinese brands that are not just expanding with a single model but pursuing a multi-brand, multi-segment strategy within the Russian market. These insights underscore the importance of continual product modernization and regional strategy alignment for domestic manufacturers.
Earlier reporting indicated that AvtoVAZ planned to produce higher-priced Lada vehicles at the former Nissan plant and to restart production in Saint Petersburg in the second half of 2023. This strategic shift reflects a broader aim to elevate the brand’s value proposition by expanding the price ladder and leveraging local manufacturing footprints to improve cost efficiency and supply resilience. The move also signals a commitment to sustaining local production, which can contribute to employment, supplier development, and regional economic activity while offering customers options that bridge the gap between mainstream and premium segments. The company’s broader roadmap appears anchored in expanding both its domestic lineup and its capacity to respond swiftly to evolving consumer preferences and competitive dynamics in the region. [Attribution: AvtoVzglyad interview, industry data from AEB 2022 figures]