Russia-friendly countries have expressed willingness to supply the missing auto parts necessary for the continued production at AvtoVAZ, according to Denis Manturov, the head of the Ministry of Industry and Trade. This support aims to keep the Lada production line robust under various scenarios, including continued cooperation with Renault.
In remarks captured by TASS, Manturov noted that discussions with Renault are ongoing while Avtoframos and AVTOVAZ pursue parallel paths. He suggested that for AVTOVAZ, it could be easier to replace certain suppliers with partners from friendly nations who can provide the needed components, thereby filling gaps in the supply chain and stabilizing output. This approach reflects a broader strategy to diversify sourcing and mitigate disruptions in the global supply network.
A window of opportunity has opened for Russian enterprises to step in as suppliers of auto parts. Through the Industrial Development Fund, a program backed by state support offers soft loans with potential partial offsetting once production ramps up. This framework is designed to reduce initial financial barriers and accelerate local manufacturing of essential components, strengthening domestic automotive industry resilience.
Manturov expects improvements in car sales within the Russian market, noting that first-quarter results should not be used to judge the full-year trend. He pointed to a rise in sales through February, followed by a dip in March, and emphasized the need to adapt logistics, adjust production planning, and monitor developments into the second quarter. The ministry is prepared to issue decisions that support both consumer demand and auto production, aiming to stabilize the market and restore production momentum.
Recent data from the Association of European Businesses (AEB) highlighted the volatility in the market, with March figures showing just over 55,000 vehicles sold, a decline of approximately 63 percent compared with the same month last year. This context underlines the importance of supply stabilization, cost management, and strategic partnerships to sustain domestic output during periods of market fluctuation.
- AvtoVAZ has announced plans to shift toward the production of simplified model lines to preserve manufacturing continuity and respond to market demand.
- The company and its partners are exploring channels to keep essential operations visible and informed for stakeholders as the industry adapts to evolving conditions.