AvtoVAZ anticipates minimal impact on its production plans from the taxi localization law, according to company president Maxim Sokolov.

Speaking at the “Digital Industry of Industrial Russia – 2025” conference on June 3, Sokolov stated that the company has sufficient production capacity to meet demand, contingent on orders from car fleets. He believes the law sends an important message to regional authorities and businesses about prioritizing domestic products.

The law, which was signed in May and goes into effect on March 1, 2026, establishes localization requirements for vehicles used as taxis. To be included in the taxi registry, vehicles must meet localization standards comparable to those for government procurement or be manufactured under a special investment contract. However, vehicles already registered before the effective date are exempt from these new requirements. Certain models with lower localization levels will be permitted until 2033.

AvtoVAZ’s production plan for 2025 targets 500,000 vehicles, a goal the company is prepared to meet. Sokolov views the legislation as a signal for a broader shift towards domestic products across various sectors, not just the taxi industry.