Russia’s top automotive brand, Lada, has idled production due to supply chain issues.
The marque was launched during the Soviet era by AvtoVAZ, which was originally a state-owned company, but has been part of France’s Groupe Renault since 2017.
Renault’s holdings in Russia account for approximately 40% of the country’s car production, and Lada accounted for the two best-selling models of 2021.
An AutoVAZ spokesman told The Wall Street Journal that the suspension was due to the global chip shortage and refused to comment on whether economic sanctions were a contributing factor.
Renault had previously paused production at other factories in Russia, citing short supplies of parts, but it has not taken any steps to exit its Russian operations in response to Russia’s invasion of Ukraine. Lada is expected to resume production next week.
Lada dominated the Soviet market during the 1970s and 1980s, and its Niva SUV remains on sale today at a starting price below $10,000. Russian President Valdimir Putin has used a personally owned Lada Viva painted in camouflage colors to promote the Russian automotive industry.