The Russian brand Lada is sweeping the domestic market, in the midst of one of the best periods for the automotive giant AvtoVAZ. Its management has just released a shocking figure: in 2024, the plant produced more than 525,000 cars. That is a 10-year record and almost 50% more than in 2023.

Those who, given the international context, had predicted a bleak future for the company were wrong, Russian President Vladimir Putin noted during a recent visit to AvtoVAZ. The manufacturer is not only staying afloat, but also launching new models.

The latest, the Lada Iskra, was presented to the head of the Kremlin in January. Its series production starts this year. The five-seater car will come in three variants: sedan, compact and compact Cross, i.e. a version more suited to rough terrain with features such as higher ground clearance. It will be available with 1.4-litre, 1.6-litre and 1.8-litre engines, the most powerful of which will have 173 horsepower, and with manual or automatic transmissions.

Even in its basic version it will have ABS brakes, dual airbags, electric windows, power steering and LED lights, among other features, while its more advanced versions will involve more systems, such as automatic climate control – which adjusts the temperature, humidity and airflow inside the vehicle to ensure a comfortable environment – a touchscreen entertainment panel and cruise mode.

These features are available on virtually all Lada models and it should be noted that the bulk of the solutions are domestically manufactured. AvtoVAZ managed to localise production to 95%, i.e. its vehicles are made almost entirely of made-in-Russia components, something made possible by import substitution forced by Western sanctions imposed on Moscow. For example, Russia began to manufacture anti-lock braking systems, which it had previously purchased from abroad as a standard practice in the era of the globalised economy.

The other fact is that the success of Lada, Russia’s best-selling brand, is not the result of a lack of competition. In fact, the Western brands that have left the Eurasian giant have been replaced by Chinese brands, which obviously have something to boast about. Nevertheless, AvtoVAZ remains firmly in the lead with almost 30% of the Russian car market.

Its most popular model is the Lada Granta. One of the keys to its attractiveness is its price, which is the cheapest among AvtoVAZ’s other offerings. The famous Russian phrase «simple and reliable as a Kalashnikov» is perfectly applicable to the Granta. This is also the case for the Lada Vesta, the second most purchased model in Russia. Its design is more modern and functional, the interior is more spacious and offers more comfort, it is safer and has better handling, among other advantages. It is not for nothing that the extended version of the Vesta, the Lada Aura – launched at the end of last year – was designed for Russian civil servants and is already being introduced into ministerial fleets.

The latter is part of the government’s strategy to support AvtoVAZ. The other line of action is to boost Lada exports. In 2024, its foreign shipments quadrupled: more than 21,000 cars were shipped to 20 countries, including Cuba. For the current year, the company aims to increase exports by 50% and expand the number of international destinations for its cars to 25. In this context, the news from the Russian Ministry of Trade and Industry, which announced subsidies for the logistics of Russian exports to markets such as Latin America, deserves attention.

Experience shows that Russian Lada cars could be well accepted in the region, as was the case with the Niva model, which remains one of AvtoVAZ’s flagship products. Its other product, which cannot be overlooked, is the Largus model. It is a compact vehicle with up to seven seats, ideal for family trips and commercial purposes. And its successful sales confirm this.

The other well-known Russian brand on the other side of the Atlantic is Moskvich. Relaunched in 2022, the plant already has several new models. The Moskvich 3 compact crossover is available in two versions: fuel-powered and electric. The Moskvich 8, which will soon be on sale, will have a seating capacity of up to 7. Meanwhile, the Moskvich 6 sedan is the brand’s latest model to be launched on the market.