AvtoVAZ Progresses Through Supplier Diversification and Unit Reconfiguration

AvtoVAZ has resumed car production on a leaner, anti-crisis footing, gradually expanding its lineup and broadening supplier contacts after securing new partners. The company is anticipated to reach a more stable trajectory by year’s end, according to Sergey Chemezov, head of Rostec. Rostec reports that while profits this year should not be expected, there are clear signals of improvement. Chemezov noted that the shift away from the Renault group and the temporary pause in some models will meaningfully affect AvtoVAZ’s financial results for 2025. The year 2020 was tough for the plant, marked by the pandemic and a loss of 196 million euros. In 2021 the business managed to post a net profit of 166 million euros, signaling a rebound amid ongoing operational and market adjustments. Rostec reinforces that the strategic break with Renault and the halt of certain production lines lie at the heart of the current and upcoming financial performance. This transition has included retooling the factory, renegotiating supplier contracts, and diversifying the supply chain to reduce dependence on a single partner. By securing fresh suppliers and widening vehicle configuration options, AvtoVAZ aims to stabilize production flows, improve product mix, and sharpen price competitiveness in a difficult market environment. The leadership stresses that profitability this year remains uncertain, but the path toward earnings growth stays viable as structural adjustments take hold and demand gradually recovers. Rostec emphasizes that sustained progress will depend on maintaining resilient supply chains, favorable terms with partners, and delivering vehicles that meet evolving consumer preferences in Russia and in other markets where the company operates. The broader context includes government and corporate involvement in supporting domestic automotive manufacturing, which can influence incentives, financing, and strategic direction for AvtoVAZ in the near term as reported by Rostec.