Chinese cars should not create competition for AvtoVAZ, First Deputy Prime Minister Denis Manturov said in an interview with Vesti.
He believes Chinese companies should focus on segments that do not overlap with AvtoVAZ’s model lineup.
Denis Manturov’s statement sets an important direction for Russia’s automotive industry, according to Alexei Ivanov, owner of the Alliance Trucks commercial vehicle dealership chain. This stance is less about completely restricting competition and more about creating a balanced market structure while supporting a strategically important domestic manufacturer.
AvtoVAZ has traditionally held a strong position in the mass-market budget segment. Lada models are in demand due to their affordable cost of ownership, extensive service network, and wide availability of spare parts – especially in the regions. At the same time, Chinese manufacturers have been actively strengthening their presence in more technologically advanced segments in recent years: crossovers, hybrid and electric models, as well as vehicles with advanced digital features and driver assistance systems.
Based on this logic, the market may indeed evolve toward a model of clearer brand positioning and product segmentation, the expert believes. This approach helps reduce direct overlap between individual models and shapes a more resilient industry structure.
In his assessment, production localization remains a key strategic element. Developing domestic component manufacturing, standardizing platforms, and expanding cooperation with suppliers help reduce dependence on external factors, optimize logistics, and enhance the overall stability of the automotive industry. Furthermore, localization contributes to job creation and the growth of related sectors.
“Chinese companies have already shown interest in local production and industrial cooperation in Russia. For them, this is an opportunity to boost product competitiveness and gain access to government support programs. For the Russian market, it provides an additional source of technology, investment, and manufacturing expertise,” explains Alexei Ivanov.
At the same time, the Russian market remains sufficiently large to accommodate both domestic and foreign manufacturers, provided there is clear positioning and development of local production, the entrepreneur emphasizes. Regions continue to see steady demand for affordable cars, while in higher price segments, interest in modern technological solutions and new types of powertrains continues to grow.
“In the long term, the industry’s success will depend less on restricting competition and more on manufacturers’ ability to offer a high-quality, technologically advanced, and economically accessible product with a high level of localization and robust service support,” concludes Alexei Ivanov.