AvtoVAZ to Build Seven Models at IzhAvto for Lada, Renault and Nissan
Russia’s AvtoVAZ will assemble seven different models across Lada, Renault and Nissan brands at the IzhAvto plant in Izhevsk, with production ramping up from 2012 through to 2020.
AvtoVAZ has confirmed plans to build seven models under the Lada, Renault and Nissan brands at its IzhAvto plant in Izhevsk, marking a significant expansion of its manufacturing presence in Russia. This initiative will see the facility, acquired from the former IzhMash group, transformed into a multi-brand production hub over the next several years.
AvtoVAZ to Build Seven Models at IzhAvto Plant Under Lada, Renault and Nissan Brands
Background: IzhAvto Plant and Acquisition
The IzhAvto plant, located in the Ural city of Izhevsk, was previously part of IzhMash, a company known for producing motorcycles, cars and weapons. AvtoVAZ’s acquisition of the facility has paved the way for a broader production strategy, enabling the Russian automaker to diversify its output and collaborate more closely with its strategic partners, Renault and Nissan. The move is part of a wave of investment in Russian automotive manufacturing, with several global carmakers establishing or expanding local production to meet growing demand and localisation requirements.
Production Timeline and Model Line-Up
AvtoVAZ’s preliminary production plan begins with the Lada Granta sedan, scheduled for assembly at IzhAvto from 2012. The Granta hatchback will follow in 2013, expanding the Lada range produced at the plant. According to company projections, combined production of Granta models at IzhAvto could reach 95,000 units annually by 2020.
The plant’s multi-brand strategy extends beyond Lada. Production of the Renault Duster SUV is set to begin in 2013, with an initial volume of 20,000 units per year. By 2020, output of the Duster is expected to rise to 30,000 units annually. Renault will also introduce the Sandero hatchback to the IzhAvto line-up in 2015, with a planned annual production of 20,000 vehicles.
Nissan will join the IzhAvto production roster in 2014 with the Tiida sedan and hatchback. Annual production of the Tiida is projected to reach 75,000 units by 2020, reflecting Nissan’s increasing focus on the Russian market.
- Lada Granta sedan (2012)
- Lada Granta hatchback (2013)
- Renault Duster SUV (2013)
- Renault Sandero (2015)
- Nissan Tiida sedan and hatchback (2014)
- B-cross (2015-2016, AvtoVAZ)
- C-cross (2015-2016, AvtoVAZ)
Future Models: B-cross and C-cross
In addition to the established models, AvtoVAZ’s internal plans include two future vehicles, codenamed B-cross and C-cross. These crossovers are scheduled for production at IzhAvto between 2015 and 2016. The introduction of these models is expected to further boost the plant’s output, contributing to a combined annual capacity of up to 185,000 vehicles when all lines are fully operational.
Implications for Russian Manufacturing and Employment
The expansion of IzhAvto is a key element in AvtoVAZ’s strategy to modernise its product range and strengthen its position in the Russian automotive market. By integrating production for Lada, Renault and Nissan under one roof, the company aims to improve efficiency and competitiveness. This approach also supports local employment, as increased production is likely to create new jobs and stimulate the regional economy in Izhevsk and the wider Ural area.
The project is expected to have a positive effect on local supply chains, as component manufacturers and logistics providers benefit from higher production volumes. For Renault and Nissan, assembling vehicles at IzhAvto provides a cost-effective route to serving Russian consumers, in line with the broader strategy of the Renault-Nissan Alliance to deepen its presence in Russia through its partnership with AvtoVAZ.
Comparison with Other Industry Investments
The IzhAvto project is part of a broader trend of investment in Russian automotive manufacturing. Other global automakers, such as Fiat, Mazda and Chrysler, have also announced or launched new plants and joint ventures in Russia in recent years. These investments reflect the growing importance of the Russian market and the need for localised production to meet both regulatory requirements and consumer demand.
- Renault and Nissan have increased their investment and local production in Russia.
- Fiat has announced plans to build a new plant in St. Petersburg.
- Mazda has set up a joint venture with Sollers.
- Chrysler is planning for a Jeep plant in Russia.
Summary
AvtoVAZ’s decision to build seven models at the IzhAvto plant under the Lada, Renault and Nissan brands marks a significant step in the company’s development. By 2020, the facility is expected to reach an annual output of up to 185,000 vehicles, supporting local jobs and supply chains, and enhancing the competitiveness of all three brands in Russia. The project reflects a broader trend of increased investment in Russian automotive manufacturing and the growing integration of global carmakers in the market.
