Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0058

Year : 2005

Industry : Automobiles

Region : Russia

Teaching Note:Available

Structured Assignment :Available

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Introduction:Togliatti-based AvtoVAZ is the largest passenger carmaker in Russia, constituting 70% of cars manufactured in Russia. The factory is one of the biggest in the world, with 90 miles (144 km) of production lines.

Though AvtoVAZ has dominated the Russian auto market for years, due to customer preferences for foreign cars, it has started losing market share.

Due to booming demand for cars, many foreign carmakers started foraying into Russia since the 1990s.

However, "the Russian market features some stiff, well-publicized barriers to entry, including excessive bureaucracy, inefficient vertical integration, high duties and taxes on components, and poorly trained management".