Ulyanovsk Region: Enterprises Are Ready to Supply Automotive Components within AVTOVAZ Programme

On 23 June, Prime Minister Vladimir Razumkov took part in the Conference of Automotive Industry Suppliers held in Togliatti. The event was organized with the support of the Russian Engineering Union and the Automotive Industry Cluster.

The conference was also attended by Dmitry Azarov (Governor of Samara Region), Albert Karimov (Deputy Minister of Industry and Trade of the Russian Federation), Maxim Sokolov (President of AVTOVAZ JSC), as well as heads and representatives of suppliers from Russia and friendly countries.

The event was aimed at developing mechanisms to implement tasks set by Russian President during the meeting on 16 June.

The conference was the first large-scale event and platform for dialogue between AVTOVAZ and suppliers of automotive components in several years. Being faced with the new challenges due to sanctions, the company seeks to replace imported components, to enhance localization and cooperation with domestic partners, and to develop technical, scientific and production cooperation with them. AVTOVAZ welcomes swift and effective measures introduced by the federal authorities and the relevant ministry to support development of the component industry and technologies.

AVTOVAZ President Maxim Sokolov shared his company's strategy and priorities in the current conditions with participants of the conference. He said, “Only direct and open dialogue with suppliers will help the industry survive and develop. It is important for our company to ensure continuity of production and sustainable employment of personnel. AVTOVAZ has successfully restarted production of LADA Granta; next in line are NIVA Legend, NIVA Travel and other models. The key objective in these conditions is to keep and maintain professional staff, as well as work together to develop the LADA lineup. For this task, we will rely on new domestic platforms and local and localized solutions and components. Our priority is technological sovereignty for critical technologies and components, which we can achieve only together with our partners and state support.”

According to Vladimir Razumkov, Chairman of the Government of Ulyanovsk Region, the region traditionally specializes in the mechanical engineering sector. In total, about 400 medium and large enterprises produce automotive components in the Ulyanovsk region. More than 22 thousand people work for these companies; some of them - more than six thousand - are involved in production of original equipment and materials for AVTOVAZ JSC and enterprises of the Samara region.

“In the current situation, it is absolutely necessary to join forces to replace critically important import as soon as possible, to repurpose regional enterprises to study and produce necessary products, to provide work according to companies' capacities, and to cover markets that previously belonged to companies from unfriendly countries. The regional government and heads of enterprises from the Ulyanovsk region are most interested in preparing production of units at all levels. These include development of design documentation and technological processes, production of industrial equipment, units and components, as well as technological processes automation and introduction of digital solutions to monitor all stages of manufacturing. We are most interested in launching new types of goods, expanding product portfolio of the first-level suppliers, and replacing import with locally made items,” said Vladimir Razumkov.