Russian carmaker AvtoVAZ will scale back its 2026 production plans after weaker-than-expected demand for its Lada vehicles abroad, the company's president said, highlighting broader strains in Russia's automotive sector despite hopes for a recovery later this year.
The manufacturer had initially planned to produce 400,000 vehicles in 2026, including 30,000 for export markets, but those targets will now be revised downward, AvtoVAZ President Maxim Sokolov told Interfax.
The move underscores the challenges facing Russia's largest carmaker as high interest rates, a strong ruble and sluggish demand weigh on both domestic and export sales. The Russian auto market has struggled to regain momentum despite the departure of many Western manufacturers following Moscow's invasion of Ukraine.
Sokolov said the ruble's strength was hurting exports by making Russian-made vehicles less competitive abroad.
"Of course, we would like to maximize our production and especially exports," Sokolov said. "But there is no point complaining about the situation, just as there is no point complaining about the weather. We will adjust our production plan accordingly."
