AVTOVAZ IN 2023: SALES AND PRODUCTION GROWTH

JSC AVTOVAZ announced results for 2023. During a press conference in Moscow, President of JSC AVTOVAZ Maxim Sokolov announced achievement of key targets for production, sales and corporate development.

Main tasks in 2023 were to resist sanctions while maintaining continuity of production, preserving personnel, keeping social guarantees and increasing wages, relaunching LADA Vesta in Togliatti, starting up the production site in St. Petersburg, expanding vehicle families and returning previously lost options, and, in addition, further implementation of investment projects for new vehicles.

At the end of 2023, AVTOVAZ increased vehicle production to 374,077 units. Moreover, the production volumes of LADA vehicles at the Togliatti site have reached a record for the last 10 years. By the end of the year, 16 modifications were in production, 16-valve engine was resumed, and all models were transferred to Euro-5 standard. More than 1,200 parts, components and materials, previously imported from unfriendly countries, were localized and replaced. AVTOVAZ team grew to 34.5 thousand people and AVTOVAZ Group as a whole has expanded to 43 thousand.

In 2023, LADA brand increased its share in the Russian automobile market and reached record levels over the past 20 years - about 35%. LADA remains the best-selling vehicle in the Russian Federation, and at the end of the reporting period, LADA Granta again took first place in ranking of best-selling models. The brand's bestseller simultaneously updated its annual sales record, reaching 206,116 vehicles.

Overall, LADA sales in 2023 increased by 87%, amounting to 352,572 units. In addition to LADA Granta, the TOP 5 of the Russian car market includes LADA NIVA and LADA Vesta family. In 2023, 49,272 new generation LADA Vesta vehicles were sold. Sales of NIVA family amounted to 92,003 units, this volume is almost equally divided by Legend and Travel models.

At the end of the year, LADA completely take up the segment of light commercial models of B-segment: the brand’s share in this market niche was 99.6%, and a total of 4,228 such vehicles were sold.

The growth in LADA sales was accompanied by the development of the dealer network. Today, 568 dealer centers operate under AVTOVAZ control, of which 315 specialize in LADA, and 253 in Renault and Nissan brands.

At the end of 2023, sales of spare parts and accessories increased by 22%. Lecar World project was actively developing, including the sale of spare parts under its own Lecar brand, a multi-brand network of spare parts stores and service centers, and a marketplace for spare parts.

Sanctions pushed LADA transformation in 2023 in the export business model. In the past year, about 6.5 thousand LADA cars were sent abroad to dealership centers in 8 countries. CIS countries remain priority export destinations, with plans to restart sales in Latin America, Africa and Middle East in the near future. A number of SKD LADA assembly projects are being implemented abroad, and one of them could be the resumption of Granta assembly in Egypt.

In 2024, AVTOVAZ plans to launch LADA Vesta with a new powertrain (1.8 EVO and automatic transmission), resume production of LADA Largus and begin production of e-Largus in Izhevsk, systematically renew the color scheme, reintroduce options to vehicles (including ESC on LADA Vesta), develop the production of special modifications, including sports, bi-fuel, manually-operated vehicles. Work will continue on new models, including LADA Iskra, the start of production is scheduled for early 2025.