AvtoVAZ expects a decline in new Lada sales in February

AvtoVAZ, Russia’s largest carmaker and producer of Lada vehicles, has reduced its February sales plan for new Ladas by 15% and publicly signaled an expected decline in sales. The company reports no noticeable market revival following a recent key interest rate cut, while broader Russian sales of new diesel passenger cars fell by about 25% in 2025. The situation underscores persistent weakness in Russia’s passenger car market despite monetary easing, with implications for domestic auto production and related supply chains.