AVTOVAZ: Main Events of 2018

In 2018, AVTOVAZ confidently continued implementing the Mid-Term Development Plan. The Company reinforced the product offensive, strengthened its position as automotive brand No. 1 in Russia - LADA - and expanded its presence in export markets. Thanks to the support of the Shareholders, Federal and Regional Authorities, AVTOVAZ Group demonstrated steady positive operating margin and profitability.

LADA New Products

The sales of LADA Vesta Cross sedan started in June 2018. It is the first car in its segment that combines the ground clearance of crossover (203 mm), excitable handling, spacious interior and one of the most popular body types in Russia - sedan.

August 2018 is notable for the start of sales of the new LADA Granta Family — sedan, hatchback, station wagon and liftback. LADA Granta, distinguished by its modern style and improved level of comfort and safety, has been and remains one of the most affordable vehicle models in the Russian market.

In November, the sales of LADA XRAY Cross started. The model is distinctive in SUV inherent attributes both in terms of design and in terms of the technical content. The car has a rich set of new equipment, a high level of comfort and off-road performance: the car’s ground clearance has reached 215 mm, a record for LADA; it’s got the intelligent LADA Ride Select system enabling the driving modes for various road conditions.

At the main automotive event of the country - the Moscow International Automobile Salon - LADA presented 4 new models and the vision of the brand’s development and design concept. LADA stand showed 6 premieres, which is a record in the Brand’s history. LADA 4x4 VISION concept car, recognized as the best exhibit at the Moscow International Automobile Salon, demonstrated the vision of the development of the Company’s style DNA.

Brand and Company Awards

LADA was awarded in 4 categories in the annual national award the “Car of the Year in Russia”. More than 1 million people took part in voting. LADA Vesta and LADA Vesta SW became the winners in the category “Small class”. LADA Vesta SW Cross got the title the “Car of the Year in Russia” in the category “Cross-country station wagons”. LADA Largus Van was awarded in the category “Mini-vans” for the 6th time already. LADA brand was awarded in the special category “Favorite brand in the mass segment”.

LADA Vesta SW Cross won the prestigious automotive award - Grand Prix “Za Rulem -2018”. The car was awarded in the category “Compact Crossovers”. LADA Vesta SW and LADA Vesta SW Cross were also awarded in the special category “Breaking stereotypes”.

The annual national award “TOP-5 Auto” by the automotive business experts: LADA Vesta SW and LADA Vesta SW Cross were recognized as the best in the category “Compact city car”. LADA PR-function was awarded in the category “The best PR department of the car maker”; it is a special award for competence and efficient communication.

LADA Vesta SW Cross received the RAF-2018 Russian Automobile Forum Award - the model was awarded in the “Best Debut of 2017”.

AVTOVAZ was awarded by “Kommersant of the Year” in the category “Industry” (according to the Kommersant Volga edition). The award, one of the most reputable and largest in the country’s business community, is given to the companies for their strong contribution to the development of Russian business.

Brand and Company Development

In 2018, LADA developed a new corporate philosophy; for the first time in the last few years it’s got a single Brand slogan. Energetic design, best quality and equipment at an affordable price, confidence in all situations - these are the three basic principles of the new LADA philosophy. The Brand’s new motto: “LADA. New Horizons”. The slogan emphasizes a full renewal of the model lineup, access to new niches, transformation of the dealer network, advanced standards in engineering and production of cars.

AVTOVAZ, together with “Immoshan” Company and the Togliatti Road Police, opened the largest car playground for the children in Russia – LADlandia to teach the traffic rules. Now children and schoolchildren of Togliatti will be able to study traffic safety rule while driving a car bike in a mini-city.

The Company has started implementing the Labor Conditions Improvement Program 2018-2020 to improve the working conditions for the Company’s employees. The total amount of funding within the Program is 3.178 billion rubles, of which more than 900 million rubles have been allocated already in 2018. The Program is developed on the basis of 100% survey of the Company’s employees and includes 588 actions aimed at improving the comfort and safety for the AVTOVAZ personnel.

The corporate development of AVTOVAZ Group is aimed at preparing further renewal of the model range: by 2026, the Company plans to launch 8 new models and 9 facelifts. In order to reinforce its scientific and technical potential the Company recruits the engineers: about 400 people, including young specialists and graduates of higher educational institutions who were hired to R&D Center. AVTOVAZ managers were meeting with the students of the largest universities in the Volga region, the Company became the general partner of the youth forum iVolga, thus creating the basis for the implementation of long-term plans for LADA.