AvtoVAZ revives production with bold 2026 targets after turbulent year
AvtoVAZ, Russia’s largest carmaker, is ramping up production after a period of cutbacks. The company plans to manufacture over 300,000 Lada vehicles in 2025, despite forecasting a 23% drop in sales for the year. Recent changes include a return to full wages and a shift back to a five-day workweek.
In September 2025, AvtoVAZ introduced a four-day workweek due to weak world market demand. The move aimed to reduce costs while avoiding layoffs. At the same time, wages were temporarily lowered.
Sales in October 2025 saw a boost, partly driven by higher recycling fees on imported cars, particularly Chinese models. This shift made Lada vehicles more competitive in the domestic stock market.
With demand stabilising, the company has now restored full wages for employees. Voluntary resignations have also dropped compared to earlier months, suggesting improved morale. Recruitment remains active, with no planned job cuts.
Looking ahead, AvtoVAZ is preparing for a major expansion. The company will switch back to a five-day workweek in January 2026. Production targets for that year are set between 500,000 and 600,000 Lada vehicles—nearly double the 2025 output.
CEO Maxim Sokolov acknowledged a challenging year, with 370,000 Ladas sold in 2025. However, the company’s focus remains on growth, with higher production goals already in motion.
AvtoVAZ is moving past its recent cost-cutting measures by restoring full working hours and wages. The company’s 2026 production plans signal confidence in a stock market today recovery. If targets are met, Lada’s output could reach its highest level in years.
