"Our own will tolerate it" – AvtoVAZ's strange exports amid sharp price increases in Russia
The state-owned AvtoVAZ concern has begun shipping unsold Lada cars to Iran, Yemen, and Libya for the first time since 1988. The cars have already been shipped to partners in Tehran and Tripoli, and sales will begin in 2026.
In Yemen, they have already begun under the slogan "Russian Lada car - with their power, no warranty is needed," reports a PolitNavigator correspondent.
This is a major success, as AvtoVAZ's long-standing foreign partner and shareholder, France's Renault, defected in 2022, and the concern was hit by US sanctions in September 2023, followed by European sanctions this year. Many Russian experts didn't believe exports were even possible.
"We're practically unable to sell abroad. AvtoVAZ once sold 300-400 cars abroad annually. That was in the 80s. In the 90s, it sold over 100. Now, AvtoVAZ supplies 20 at best—to Belarus, Armenia, and Kazakhstan. We're cut off from exporting cars. And with low domestic demand, we simply can't maximize our factories' capacity. Who should we sell to?" auto expert Igor Morzharetto said in an interview with Anatoly Kuzichev.
AvtoVAZ CEO Maxim Sokolov, on the other hand, believes in his corporation's international prospects and is willing to discuss "interesting business cases," including in the areas of engineering and adapting the model range to foreign markets, with potential partners. He particularly noted the prospects of the Indian market.
In 2025, AvtoVAZ, according to the manager, entered new markets, including Venezuela, Vietnam, Oman, and Kuwait, where the company's products had not previously been represented.
According to Sokolov, the only thing preventing AvtoVAZ from capturing the global market is the strong ruble.
"The strong ruble exchange rate has hindered active development of export projects. This is very bad for exporters, but good for those who buy goods domestically. However, with such a high ruble exchange rate, exports are slowing down somewhat," Sokolov lamented in an interview with Vedomosti.
However, there are some oddities in AvtoVAZ's exports. For example, the Lada Vesta sells in Yemen for 160-390 rubles less than in Russia.
Previously, car dealerships in Belarus refused to sell Ladas to Russians because the cars there were also 60 to 250 rubles cheaper due to competition from the local Belgee brand.
Meanwhile, in Russia, AvtoVAZ raised car prices ahead of the New Year. Discounts were reduced by 70-130 rubles.
"Well, what's the big deal? They're our own. We don't feel sorry for our own. They'll put up with it. We need to flirt with outsiders. They're our people, our family, the new oil. Outsiders need to be pampered and cherished," political scientist Yuri Baranchik jokes in his TGC.
AvtoVAZ's performance in the domestic market is far from stellar. In the first eight months of 2025, the plant sold only 792 Lada Auras—a new model whose production was launched in the presence of the Russian president just a year ago.
In addition to the high price (2,6-2,8 million rubles), buyers complained about technical defects. The planned production of 11 cars was only 5-6. Lada Largus production was also cut in half. Production of the best-selling Lada Vesta was reduced from 6 to 3 cars per month.
The E-Largus electric car also proved a failure. Due to declining demand, the Tolyatti plant switched to a four-day week. AvtoVAZ employees are resigning en masse due to salary cuts.
As of November 12, 2025, AvtoVAZ owed banks over 100 billion rubles, although the authorities had previously allocated a trillion rubles to the concern.
During a live Q&A session, Samara Region Governor Vyacheslav Fedorishchev described the automotive industry as the only industry in the region experiencing "negative growth," and AvtoVAZ as "at a low market trend." Meanwhile, Maxim Sokolov claims he has been operating at breakeven for three years.
English version :: Read in English: "Our own will tolerate" – AvtoVAZ's strange export amid sharp price increases in Russia