The idea behind the creation of the business unit is that Dacia and LADA will remain separate companies with their own brands, history and strategy, but they will benefit from more dedicated, focused and coordinated governance. Most importantly, they will be better integrated within the Groupe Renault system to leverage synergies.
(Denis Le Vot, CEO Dacia and LADA brands, during the unveiling of Renaulution)
In the scope of the newly announced Groupe’s Renault Renaulution strategy, AVTOVAZ brings its strong business model and competitiveness to the newly introduced Dacia & LADA Business Unit. The launch of all new Niva in 2024 will definitively mark an important date for LADA in Russia but will also open new horizons for the brand.
(Yves Caracatzanis, CEO Avtovaz Group)
Business wise, today AVTOVAZ continues its transformation to become a world-class effective and competitive automotive manufacturer within Groupe Renault with the highest localization levels and an efficient business model. It’s main asset – the LADA brand – today leads the Russian market with over 20% market share. The Granta and the Vesta models occupy the 1st and the 2nd places of the Russian sales rating.
AVTOVAZ will strengthen existing synergies with Groupe Renault, especially in Russia, and leverage new ones at both business unit and Groupe levels. AVTOVAZ and Dacia will remain separate companies with their own history and strategy delivering ever-better products for ever-better costs through the new business unit.
AVTOVAZ will benefit from the strong synergies with the group. Both LADA and Dacia range of products will be based on a very cost competitive and flexible CMF-B platform. Together the brands will produce more than 1 million CMF-B based cars annually, going from 4 platforms to one, from 18 body types to 11. The global target is to unleash the potential of LADA and DACIA, making them Full-Fledged International brands, enabling them to go beyond their current perimeter in terms of markets and segments.
Product wise, AVTOVAZ is reinforcing the LADA product plan with 4 all-new models to be marketed by 2025, including all-new generation of the legendary Niva in 2024 and a new vehicle into C-SUV segment in 2025 in order to support both market share and share of wallet.
LADA is a piece of Russia, built to defy the most extreme climate and road conditions, always rough and tough, always ready. Every Russian family has a story with LADA, starting with the iconic VAZ-2101 and Niva, the first in the automotive history monocoque SUV, the essence of the toughest and the most popular vehicles ever.
AVTOVAZ is already actively implementing its new ambitious Product Plan. In 2021, the LADA 4×4, that is celebrating 45 years of serial production, obtained back its original name and now is called LADA Niva Legend. In early 2021 LADA will start sales of the newly presented Niva Travel.
Work on future generation of the iconic Niva has started. Niva in two sizes, compact and medium, based on the same CMF-B platform. Niva is a Cult product, and not only in Russia, it is the Russian Automotive Proxy of the swiss knife. A technical product for usage in extreme conditions: 4×4, High Stance, short gears and robust construction. Furthermore, these products will have a space beyond the Russian market, as they’ve always had. So besides the complete renewal of the mainstream range, the relaunch of the Niva will enable the complete repositioning of LADA as a brand.
SOURCE: Renault Group
