AvtoVAZ to Cut Production Due to Export Problems
Russian automaker AvtoVAZ plans to cut production due to weak demand for its vehicles abroad. Company President Maxim Sokolov announced that the targets for 2026 will be revised. Initially, the company expected to produce 400,000 vehicles, of which about 30,000 were planned for sale in foreign markets. However, due to export difficulties and low demand, these plans will have to be adjusted.
Sokolov attributed the situation to the “strong ruble,” which, he said, negatively impacts exports.
“Of course, we would like to maximize production overall and especially our export operations. But complaining about the current situation is pointless—just like complaining about the weather. Therefore, given these circumstances, we will adjust our production plan,” he said.
In 2025, the company sold nearly 351,400 vehicles, of which 23,000 were exported. To meet AvtoVAZ’s current targets, the company must sell at least 30,800 Lada vehicles monthly in the domestic market and another 2,500 abroad.
At the same time, Sokolov noted that the company will try to redirect some of the cars intended for export to the Russian market, where the situation also remains challenging. According to Autostat, in the first quarter of 2026, AvtoVAZ sold 63,800 cars, which is 17.4% less than in the same period last year.
In January, sales fell by 29% to 19,600 vehicles, and in February by 22.5% to 19,000. In March, 25,200 cars were sold—the same number as in March 2025. If this trend continues, the company’s annual sales may not even reach 300,000 cars.
The drop in demand has already led to a significant buildup of inventory at dealerships. In May, AvtoVAZ resumed operations after a nearly two-week corporate shutdown, which was officially attributed to production modernization. However, market participants linked the halt in production primarily to overstocked warehouses and weak sales.
Despite this, performance improved slightly in April and May. The company reported that it sold nearly 31,200 and 27,500 cars during those months, respectively.
Commenting on Lada’s sales prospects in Russia, Sokolov noted that based on the results of the first five months of 2026, the situation for the company was roughly the same as last year.
“Everyone, of course, is looking at the second half of the year with more hope than the first. The key factors will remain the key interest rate and the ruble exchange rate,” he concluded.
Earlier, AvtoVAZ Sales and Marketing Director Dmitry Kostromin stated that the start of 2026 was the worst for the Russian automotive market in the last 20 years.
This is reported by Russian propaganda media.
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