The company is moving toward SKD assembly of foreign cars at its facilities, according to AvtoVAZ president Maxim Sokolov. He explained that several foreign manufacturers have already put forward proposals, and negotiations are in progress. The discussions are being evaluated for their potential benefits to AvtoVAZ and to the broader Russian auto industry, with careful consideration given to what such partnerships could mean for local jobs, supplier networks, and technology transfer. However, Sokolov did not disclose which country’s firms are engaging in talks, keeping the specifics under wraps as the process unfolds.
Speaking during a session of the Federation Council, Sokolov noted that once foreign automakers left Russia, a number of domestic companies signaled their readiness to initiate low-localization SKD assembly of imported models either on their own grounds or within idle factory spaces. He emphasized that these arrangements, while they may offer short-term capacity, do not automatically foster the growth of national suppliers or strengthen engineering competencies within Russia. The implication is that simply having assembly lines in place without a robust localization strategy leaves critical gaps in the domestic value chain and technical know-how.
To address this, Sokolov argued for a regulatory framework that ties government support to the level of localization. He proposed a straightforward principle: the higher the localization, the greater the amount of state aid should be available. At the same time, he cautioned against front-loaded incentives that promise future localization. In his view, incentives should be earned through tangible domestic contributions, not as promises that may never materialize. This approach aims to spur genuine import substitution and strengthen the national automotive ecosystem by encouraging original equipment suppliers, local content creation, and domestic engineering development. [Source: AvtoVAZ leadership remarks]
AVTOVAZ operates main production facilities in Tolyatti and Izhevsk, locations with historical significance in Russia’s automotive landscape. The current product lineup includes four main model families: Vesta, Largus, Granta, and Niva. These brands serve a broad range of market segments from compact passenger cars to versatile utility vehicles. The company continues to balance maintaining legacy models with exploring modernization avenues to better align with evolving consumer preferences and regulatory requirements. The ongoing strategic discussions about SKD assembly are viewed in the context of broader regional industrial policy, aiming to strengthen domestic manufacturing bases while leveraging international partnerships in a controlled, gradual manner. [Attribution: company records and public statements]