Lada Intends to Visit Azimut
CX-1: Taking on the Titans - Lada Azimut's Epic Fight in Russia's Crossover Market
Gear Up: Lada Azimut Readies to Roar in Tolyatti Starting Next Year
Photos: Kommersant / Yevgeny Razumny
AVTOVAZ, the renowned Russian automaker, is about to unleash the long-awaited Azimut model in Tolyatti by 2026 - the first significant new crossover in Lada's lineup in nearly three decades. The development of this beast took around three years, with a staggering 20 billion rubles poured in so far. The aim? To conquer the segment that accounts for a whopping 70% of new car sales in Russia, presently dominated by Chinese brands [1]. However, the weak demand for new vehicles might complicate things [2].
Photo: Kommersant / Yevgeny Razumny
Maxim Sokolov, AVTOVAZ's Iron-Fisted President
Sokolov, AVTOVAZ's fearless leader, revealed that the company has invested a hefty sum in the creation of the next-gen Lada Azimut crossover, showcased at the St. Petersburg International Economic Forum 2025 [3]. "This is a massive investment in research, development, and capacity expansion," Sokolov remarked, explaining that funds continue to flow [3].
Photo: Kommersant / Yevgeny Razumny
Thousands of Original Parts: The Blueprint of Victory
Over three years, Russian geniuses spent countless hours crafting nearly a thousand unique parts and components for the Lada Azimut [3]. The crossover will commence production at the Tolyatti plant in the first half of 2026. For this, the Lada Vesta's production line underwent modernization [3]. The plant witnessed improvements in welding, painting workshops, and additional robotization to prepare for the new battles [3].
A Cause for Poverty? - The Cost Remains a Mystery
AVTOVAZ chooses to keep the price of the new model under wraps [3]. Sokolov revealed that the Azimut will be slightly pricier than the current Lada lineup but cheaper than the market average [3].
Engine Power: The Heart of the Beast
The new crossover will be equipped with 1.6 and 1.8-liter engines, coupled with a 6-speed manual and a variator transmission [3]. Future plans include a new, powerful turbocharged engine delivering 150 hp, along with a classic automatic transmission [3]. AVTOVAZ assures a strong emphasis on technological sovereignty, focusing on both the car's design and production process [3].
Riding the Front-Wheel Drive Wave
Front-wheel-drive crossovers are all the rage in the market, and the Lada Azimut follows suit [3]. Over half of the crossovers available from Chinese manufacturers are front-wheel-drive [4].
The Elephant in the Room: Intense Competition
Despite the beaming hopes and investments AvtoVAZ has put into the Lada Azimut, it will be going toe-to-toe with Chinese crossover titans such as Chery, Haval, and GAC [5]. Igor Morzharetto, an automotive expert, asserted that the Azimut's success depends on it staying within the price range of 1.9-2.5 million rubles [6].
Photo: Kommersant / Yevgeny Razumny
A Price War Going Downhill? - Market Perspectives
Experts like Maxim Kadakov, chief editor of "Za Rulem" magazine, and Sergei Tselikov, CEO of "Avtostat," believe that price will be the main deciding factor for the popularity of the model [6]. If the price is affordable, demand for the new Lada crossover will skyrocket, they believe [6]. However, the ongoing market decline may hinder the launch, with Sergei Sokolov predicting a 20-25% reduction in AVTOVAZ's production plan for 2025 [2].
Photo: Kommersant / Yevgeny Razumny
Sources1. Kommersant2. TASS3. Auto24.ru4. Avtostat5. Interface Online6. Za Rulem magazine
Additional Insights:- In 2024 and the first half of 2025, Chinese-origin vehicles accounted for a significant share of new car sales in Russia, roughly 16-18% of the total market in 2023-2024, with expectations to grow to around 40-45% by the end of 2025 due to increasing local assembly and localization efforts [6].- Chinese automakers such as Haval, Chery, Geely, and Changan are among the top competitors in the market. Although their sales have fluctuated, they maintain strong market shares: for example, in May 2025, Haval held about 11.6% and Chery about 10.7% share [6].- The trend shows Chinese brands moving from pure imports to localized production in Russia, supported by government subsidies and investment contracts, which further solidifies their competitive position [6].- Geely and Changan also compete in this segment but have seen larger sales declines; nevertheless, they still represent significant competition because of their model lineups suited to Russian market preferences [6].- Additionally, other localized production efforts like the Moskvich 8 and electric vehicles from brands like Evolute contribute to the competitive landscape, though these are less dominant than the Chinese brands in crossovers [6].
- The development of the Lada Azimut crossover, set to be released in 2026, marks a significant investment not just in the automotive industry, but also in the finance sector, as AVTOVAZ has poured 20 billion rubles into its creation.
- In the quest to dominate the Russian market, the upcoming Lada Azimut crossover will face fierce competition not only in the automotive segment but also in the transportation industry, as it will go head-to-head with Chinese crossover titans like Chery, Haval, and GAC.
