Renault-AVTOVAZ Update: Production Strategy Amid Russian Supply Shifts

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The Renault Group’s recent decision to pause operations in Russia caught many observers off guard, yet AVTOVAZ apparently had warning signs earlier and began implementing steps to safeguard production continuity. A communications briefing from the domestic automotive leader to the media outlined concrete measures: “Active work is underway to substitute certain essential imported components with viable alternatives. The company is also preparing specialized variants of selected Lada models that will be less vulnerable to disruptions in supply. These variants will progressively reach customers in the coming months.”

To restart production of the original Granta and Niva lines, certification with new component suppliers must be completed. Industry insiders cited by Kommersant suggested the factory could commence assembling cars in a simplified configuration by late April. The trajectory remains uncertain regarding fresh models tied to the Renault platform, and the overall outlook for renewed cooperation with the French group appears unsettled. Renault holds a 68 percent stake in AVTOVAZ, Rostec 32 percent, and Renault represents roughly 10 percent of the French group’s total revenues from Russia.

In Togliatti, two models are produced on internal platforms — Granta (formerly Kalina) and Niva (SKP) — while the Izhevsk facility manufactures Lada Vesta on its own platform. Largus and XRAY (line B0) are built on the Romanian Dacia framework. The ongoing AVTOVAZ process remains tightly linked to foreign suppliers, with a single purchasing system coordinated with Renault. Vesta still depends partly on external components, while Niva and Granta show somewhat lower reliance on Renault. In recent years, AVTOVAZ has progressively reduced its independent component production, trimmed staff, and boosted efficiency. Now the company faces a reverse shift as the Ministry of Industry and Trade signals willingness to provide broad support.

Experts anticipate that AVTOVAZ will likely simplify equipment further, possibly releasing models without ABS and prioritizing air conditioning as a basic comfort feature. If Western restrictions intensify, the product lineup could shrink to three core models: Niva, Granta, and Vesta, offered in the most basic trims. Yet foreign components still require certification, and timely replacements remain a critical factor.

Even under a streamlined approach, a full return to regular production is not expected before mid-summer. In the meantime, the priority remains to keep assembly lines moving to preserve business viability and avoid a deeper downturn in regional manufacturing activity. This approach aims to maintain worker employment, stabilize supplier relationships, and sustain downstream distribution networks across Russia.

The Ministry of Industry and Trade is prepared to present companies that paused operations in Russia with options to decide their future plans before the start of April.

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