AvtoVAZ and Renault brand’s other Russian operations, represented about 10 percent of Renault Group’s revenues in 2021, Pieton stated.
Renault’s initial-quarter outcomes mirrored the impression of the war in Ukraine, which started on Feb. 24:
- Lada’s automobile profits were being down by 33 p.c to 61,000 in the quarter
- AvtoVAZ revenues fell by 23 % to 527 million euros
- Renault Russia revenues dropped by just 2.1 p.c to 367 million euros. The decline was reasonably reduced because of “destocking” and value improves, Pieton mentioned.
Russia has mentioned that foreign businesses that leave the nation next the invasion of Ukraine could be subject to repatriation of their industrial property.
For Renault Group, that could incorporate AvtoVAZ’s enormous Togliatti manufacturing unit, in which Renault has invested hundreds of hundreds of thousands to modernize, as properly as a different factory around Moscow that builds Renault and Nissan versions for the domestic current market.
Renault Group CEO Luca de Meo planned to shift Lada’s growing older lineup to the modern Renault-Nissan Alliance CMF-B system to boost synergies with the Dacia manufacturer in the coming several years.
Other automakers, which includes BMW, Ford, Mercedes, Stellantis and Volkswagen, have suspended functions in Russia. But Renault has by far the biggest presence in Russia, with Lada the No. 1 manufacturer. Combined, Renault, Lada and Nissan have about a 30 per cent share of the Russian market.
AvtoVAZ was a shiny location for Renault in 2021, as de Meo’s budding turnaround plan started to slowly but surely bear fruit.
AvtoVAZ contributed a disproportionate quantity of Renault’s automotive revenue: 247 million euros, for an operating margin of 8.7 percent. Of Renault’s around 2.7 million product sales, Lada accounted for 385,000, or about 14 p.c.
But outdoors of AvtoVAZ, Renault’s automotive operations produced a earnings of just 260 million euros, or .6 per cent of revenues.