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AvtoVAZ Projects Fourth Straight Break-Even Year as It Targets 400,000 Cars in 2026

The CEO warns of mounting price pressure from Chinese brands driven by steep discounts under easier credit in their home market.

Overview

  • Management reports revenue growth in the second half of 2025 supporting the outlook for another break-even year.
  • The 2026 investment program is set at about 42 billion rubles, with debt levels described as manageable despite high borrowing costs.
  • Production guidance calls for at least 400,000 vehicles next year, with the Lada Iskra and Azimut slated to enter the market in the second half; volumes depend on the key rate and demand support measures.
  • Maxim Sokolov accuses Chinese rivals of aggressive discounting up to 1 million rubles, while maintaining that Lada models are still priced lower in dealerships.
  • He notes that Chinese automakers face no sanctions and benefit from roughly 3% rates and export support, as their brands hold about 60% of new-car sales versus 32% for Lada, according to Rolf.