Lada (, ), marketed as LADA) is a brand of cars manufactured by AvtoVAZ (originally VAZ), a Russian state-owned company. From January 2021 until May 2022, Lada was integrated with then sister brand Dacia into Renault's Lada-Dacia business unit.
The first cars manufactured by AvtoVAZ were produced with technical assistance from Fiat and marketed under the Zhiguli designation. The Lada brand appeared in 1973, initially being overseas-focused before becoming AvtoVAZ's main brand for all markets in the 1990s. Renault took control of the brand in 2016. Technical assistance from the French company started in 2008, after it acquired a minority AvtoVAZ stake. Lada was re-acquired by the Russian government in 2022.
Outside of the Eastern Bloc, Ladas were aimed squarely at the budget end of the market, where they were often as little as half the price of contemporary Western vehicles of the period. Lada vehicles are positioned as affordable and offering good value for money.
History
Soviet era
Automaker AvtoVAZ was formed from a collaboration between Fiat and the Soviet Vneshtorg (Department of Foreign Trade), and is based in the city of Tolyatti on the Volga River. Both sides discussed the proposal in Moscow, where Gianni Agnelli, the owner and nephew of the founder of Fiat, and Vittorio Valletta, the president of the company, had arrived from Italy. The first preliminary agreement was signed on 1 July 1965. On 4 May 1966, the Soviet minister of the automotive industry Alexander Tarasov and Vittorio Valletta put their signatures on a protocol on the scientific and technical cooperation between Fiat and the Soviet ministry. Eventually, a general agreement between the two sides was signed in Moscow on 15 August 1966. Fiat's subsidiary Comau supplied many of the automation systems in the plant.
The company began producing the VAZ-2101 in 1970, which was a more rugged version of the Fiat 124 sedan. The car was given heavier steel body panels and strengthened components, which improved reliability on bumpy roads and in the harsh winters of the Soviet Union.
The first cars manufactured by AvtoVAZ with technical assistance from Fiat were marketed under the Zhiguli designation, allegedly chosen after it was suggested by designer, A. M. Cherny. When the cars began to be exported on foreign markets, the Zhiguli designation was found to be inappropriate, as it was hard to pronounce for non-Russian speakers, and it was said to resemble the word gigolo too closely. Lada become the brand for export markets. Due to the scarcity of auto-repair shops in the Soviet Union, Ladas were designed to be easily maintained by their owners. The rugged Lada was popular in Europe, Canada, and South America for customers looking for more affordable alternatives to local brands, and sales of the new cars were extremely successful, reaching as far as New Zealand. In the West, their construction was frequently described as cheap, and that inspired jokes at the car's expense; nonetheless, Lada "gained a reputation as a maker of solid, unpretentious, and reliable cars for motorists who wanted to drive on a budget." The Lada brand appeared in 1973, and it has since become the main brand for AvtoVAZ vehicles.
Since the original Fiat engine did not have any space for modernization, it was replaced with a new overhead camshaft engine. The car was equipped with rugged drum brakes, as the latter proved to be more reliable on poor roads. More reliable and up-to-date front and rear suspension with increased ground clearance, a modernized transmission, and recessed door handles were also fitted. The work on the new car was conducted by joint groups of NAMI and Fiat engineers, who worked together in Turin and Tolyatti. By the spring of 1970, AvtoVAZ had formed its own team of designers and engineers and worked independently.
After having built several prototypes and experimental vehicles, AvtoVAZ designers launched the first car entirely of their design, the VAZ-2121 Niva, in 1977.
Post-Soviet era
The 110-series sedan was introduced in 1995, two years after its original 1993 deadline. Development costs for the car were estimated at $2 billion. The 2111 station wagon followed in 1998 and the 2112 hatchback completed the range in 2001. A five-door version of the Niva, the VAZ-2131, was introduced in 1995. However, by 1997, Lada was forced to withdraw from most Western European markets due to tightening emission and safety legislation. Also, the rapid rise of Pacific Rim marques such as Hyundai, Kia, and Proton in the 1990s began to take over the budget sector of the market, in which Lada had survived since the 1970s, which also contributed to the marque's eventual demise in the West.