Renault Announces Russia Strategy for the Next Five Years

With a strong pace of product launches, capacity investment to meet demand and an alliance with the leader of the Russian auto industry, AvtoVAZ, Renault’s ambition is not just to become a leading brand in the B segment, but also to create a broad range of vehicles adapted to the needs of local customers.

At end-June 2011, Renault had 130 dealers in 86 locations and was present in all Russian cities with over 300,000 inhabitants. Renault plans to have 200 points of sale by 2013 and 260 by 2015.

The Renault-Nissan Alliance and AvtoVAZ have three production sites with a total capacity of 1.1 million units a year. The objective for 2016 is 1.6 million.

At Avtoframos (Moscow), Renault’s first facility in the country, capacity investment in 2010 has doubled output, to 160,000 vehicles a year. By year’s end, four different vehicles (Logan, Sandero, Fluence and Mégane) will be produced at the Moscow plant, while the Duster will be launched in 2012.

AvtoVAZ (Togliatti) has a capacity of 900,000 vehicles a year with three main production lines, including a new B0 line that will produce vehicles for the three partners starting in March 2012. It will have an installed capacity of 350,000 units a year and be able to produce five different vehicle models by the Renault, Nissan and Lada brands using modern facilities. The first vehicle produced will be the Lada Largus, a small van based on Logan. In all, some €400 million have been invested in capacity growth for the B0 line.
AvtoVAZ is responsible for 45% of domestic production and represents 27.3% of the market.

The Nissan plant in Saint Petersburg manufactures three models (Murano, Teana and X-Trail), eith a capacity of 50,000 vehicles a year.

The IzhAvto plant (220,000 vehicles annually, to be increased to 360,000 by 2016) will further boost this capacity when included in the Group’s strategic development plan.