History[edit]
The AvtoVAZ assembly line in 1969
Post-Soviet adjustments[edit]
See also: Automobile industry of the Soviet Union
The Soviet Union possessed a large automotive industry. In late 1987, the industry produced 2 million cars, satisfying 45% of the domestic demand.[2] But after the dissolution of the Soviet Union the industry faced a crisis due to competitive foreign imports. Japanese brands overtook the lower-end Ladas; on the high-end sector, Volga sales dropped in favor of German-built Mercedes and BMWs. By 1993, total output was down 14% compared to 1990 levels. Lada's declining sales during the 1990s, and toughening European Union emissions requirements, saw exports to Western Europe discontinued by the end of the decade. Lada had enjoyed particularly strong sales in Britain, peaking at more than 30,000 sales a year in the late 1980s, but had failed to remain competitive with other budget brands over the subsequent few years.