Russian automaker AvtoVAZ will reportedly start production of a new Renault-based sedan next month. The four-door will be sold under AvtoVAZ’s Lada brand.
The development is just the latest in a growing relationship between Renault- Nissan and AvtoVAZ – Russia’s largest automaker. AvtoVAZ will begin production of a new Nissan-badged vehicle on the same line as the Renault-based Lada later this year.
Renault-Nissan currently holds a 25 percent stake in AvtoVAZ, but hopes to grow that figure to 50 percent in the coming weeks, according to Bloomberg.
Growing potential
The Russian market expanded 39 percent to 2.65 million sales last year, with AvtoVAZ holding a significant share of those sales. AvtoVAZ produced about 630,000 vehicles last year and expects that output to increase to 750,000 units in 2012. The overall Russian market is expected to advance 12 percent to 2.8 million units.
AvtoVAZ could prove to be an important partner to Renault-Nissan, particularly if the European market continues to worsen. The Chinese market has kept a number of global automakers afloat, and Renault-Nissan might just be able to say the same thing about Russia in the coming years.
