Renault-Nissan finalised a long-awaited deal to take control of Lada-maker AvtoVAZ as it looks to snatch market share from rivals in Russia by offering affordable modern vehicles to a rising middle class.

Carlos Ghosn, leader of the Franco-Japanese alliance who was in Moscow to sign the agreement, said the deal deepens a four-year partnership it has had with AvtoVAZ to tap demand for new cars from Russians with growing salaries and rising aspirations.

“Russia is poised to become the largest auto market in Europe by 2015,” Mr Ghosn said.

He expects the new venture to capture 40 per cent of Russia’s market by 2016, up from 30 per cent, as Renault-Nissan contributes technology and product knowledge to Lada while benefiting from AvtoVAZ’s manufacturing facilities. – (Reuters)