The factory was created in 1933 as a wood processing plant LOZOD (Likino Engineered Wood Test Factory). It produced pressed wood products, as well as wood particle boards. In 1945 the factory was renamed to LiMZ (Likino Machinery Factory) and it started producing small machinery like power saws and portable generators.
In 1959 factory has started to assemble passenger bus ZIL 158. It was renamed to LiAZ the same year. In 1967 the factory has designed and manufactured first bus of its own named LiAZ-677. The factory has produced over 200 thousand buses of this model over next 25 years.
After collapse of the Soviet Union, LiAZ started to experience difficulties. In 1996 bus manufacturing ceased and the factory declared bankruptcy in 1997. The factory has been restructured and it is known as LLC Likinskij Avtobusnyj Zavod. In 2000 it became a part of RusAvtoProm corporation, and it is a part of GAZ group since 2005.