AvtoVAZ Aims for Profit in 2022 and Expands Output Plans for 2023
AvtoVAZ chief Maxim Sokolov indicated that the automaker is on track to finish 2022 with a positive result, according to reports from Interfax. The company is navigating a challenging year while planning gains in the near term.
For 2022, AvtoVAZ projects a total output of about 220 thousand vehicles. This figure is lower than the prior year, yet the forecast had been far more conservative earlier in the year. In April, some scenarios warned that the production line could be halted for nearly the entire year and that AvtoVAZ might incur losses around 30 billion rubles. By late 2022, however, the team had shifted to a six-day work week and managed to secure a modest profit, Sokolov noted on Rossiya 24, as cited by Interfax.
Looking ahead to 2023, Sokolov outlined plans to raise production to roughly 400 thousand cars and to expand the company’s manufacturing capacity. He also estimated that AvtoVAZ would continue to hold about 40 percent of the Russian auto and light commercial vehicle market, a share he expected to keep for the coming year as well.
Historically, AvtoVAZ, which was once part of the Renault-Nissan alliance, reported a profit of 166 million euros at the close of 2021, underscoring the company’s volatility and the potential for rebound in the domestic car market.
Additionally, Sokolov suggested that widespread adoption of electric vehicles in Russia by 2030 may not occur as quickly as some observers predict. He also hinted that a pre-New Year showcase would unveil the first prototype of an electric Lada Largus, signaling practical steps toward electrification within the brand lineup.
From a northern market perspective, analysts in Canada and the United States interested in global vehicle production trends would note how domestic policy, exchange rates, and supply chain resilience shape the pace of modernization for large regional players like AvtoVAZ. While the near-term focus remains on stabilizing output and profitability, the longer arc includes leveraging existing distribution networks, managing raw material costs, and aligning new product launches with consumer demand for affordable, practical vehicles. In this light, AvtoVAZ’s 2023 guidance reflects a broader industry pattern: moderate growth driven by capacity expansion, product diversification, and careful cost management amid a shifting global auto landscape. The company’s approach to electrification, including a prototype Largus, aligns with global expectations that electrified options will become increasingly common in mainstream segments, even as adoption rates vary by region and policy framework.