In June this year, AvtoVAZ in St. A ceremony was held at the former Nissan plant in St. Petersburg to officially start production of the new Lada X-Cross 5 crossovers, but the car never went on sale. Under the name X-Cross 5 is hidden the Chinese crossover FAW Bestune T77, the original logo of which has been replaced by the Lada nameplate.
Experts interviewed by socialbites.ca doubt the implementation of this project; They believe this has become impossible. inclusion The Russian automobile factory is on the sanction lists of the European Union and the USA. In such cases, analysts call the most difficult task to organize the assembly of finished Chinese cars at AvtoVAZ, as opposed to the purchase of individual components and assemblies.
“There was a situation when AvtoVAZ had just begun to negotiate with Chinese concerns about loading its new sites. And a few months later, AvtoVAZ itself was subject to sanctions, which could not but play an important role in relations with Chinese partners,” explains Sergei Tsyganov, author of socialbites.ca’s Telegram channel “Russian Automobile”.
According to him, for AvtoVAZ the failure in FAW is a very sensitive issue, because it is necessary to somehow get out of the situation, both in terms of image and economy. The problem also lies in the fact that a batch of Lada X-Cross 5 cars has already been assembled.
“What should we do with these cars, with what brand should we sell them? If it is like Lada, how can you guarantee it without the support of the manufacturer? Is it possible to somehow manage this while maintaining relations with the FAW and without incurring huge losses? “There are so many questions there.” notes addressee on the public page.
If you look at the issue more broadly, Chinese automakers are starting to fall into two categories when it comes to cooperation with Russia: those that ignore sanctions and those that previously allowed the possibility of cooperation but got tougher after the tightening of sanctions. an irreconcilable position. Experts note that those who are ready to cooperate no matter what are an absolute minority.
“Lada X-Cross 5 has less than a 50% chance of entering the Russian market. Please note that FAW is currently investing heavily in promoting the Bestune T77.
– Lada is the one who should be. “If AvtoVAZ were ready to enter the market with this car under the Lada brand, they would of course also agree that FAW would not sell it under its own brand in Russia,” he points out.
According to independent automotive industry consultant Sergei Burgazliev, large Chinese automakers that cooperate with Western companies and are export-oriented are most afraid of sanctions pressure.
“FAW is one of the largest Chinese automakers and its area of interest covers all of Southeast Asia, including Malaysia, Indonesia, Vietnam and other countries where the US political position is strong.
“No one will risk total sales in this region because of the Russian market,” he said.
– Burgazliev told socialbites.ca.
They sell themselves
The FAW Bestune T77 crossover sells well in the Russian market, even without the Lada logo; The Russian representative office of FAW named Bestune T77 bestseller in its report on car sales for the three quarters of 2023.
2,784 units of these machines were sold in the 9 months of this year.
this accounted for 40% of all sales of the FAW passenger division in Russia.
In the Russian market, FAW Bestune T77 is offered at a price of 2.3 to 2.6 million rubles. At the same time, the price of even the simpler domestic Lada Vesta Cross in the maximum configuration has already exceeded 1.8 million rubles.
Don’t forget the warranty
Independent automotive industry consultant Sergei Burgazliev notes that the sale of already assembled Lada
“Lada X-Cross 5 cars will probably go on sale, but it is not clear who will buy them without warranty and service.
It takes at least 3-4 months for the dealer network to learn how to service a new model. “The technical documentation alone that needs to be translated into Russian takes approximately 2 thousand pages,” he said.
– points out Burgazliev.
Maxim Kadakov, editor-in-chief of Za Rulem magazine, is more optimistic about the fate of Lada X-Cross 5.
“The cars to be produced at AvtoVAZ facilities will be gathered under the Lada brand. This is the main interest of AvtoVAZ. If produced, service and spare parts will be provided. This also applies to the X-Cross 5,” Kadakov told socialbites.ca.
Kadakov noted that AvtoVAZ takes a responsible approach towards customers, they have fully prepared documentation on service stations and service provision, and since the beginning of summer, FAW has had problems cataloging spare parts for Bestune T77.
“It is possible that the owners of these FAWs can get service from Lada services,” he thinks.
Which Chinese does AvtoVAZ cooperate with?
Negotiations on cooperation with AvtoVAZ are being conducted by the Chinese automobile concern Dongfeng, reported former Telegram channel No Limits.
According to Linlong Zou, director of Dongfeng’s general management department, the Chinese automaker is in talks with AvtoVAZ about localizing auto components in Russia, with assembly expected to begin in 2024.
At the MIMS exhibition, Chinese Dongfeng presented engine and transmission products, including a 6-speed robotic transmission and a hybrid power unit based on a 1.5 gasoline engine.
The easiest way for AvtoVAZ and Chinese partners is to organize cooperation on individual components and assemblies – Lada Vesta has already received Chinese synchronizers in the transmission for the 1.6 engine with 106 hp. Maxim Kadakov from “Behind the Wheel” notes that a Chinese gas distribution mechanism has been installed. He also knows that AvtoVAZ products will receive CVTs and manual transmissions from WanLiYang (WLY) in 2024.
According to the author of “Russian Automobile” Sergei Tsyganov, AvtoVAZ’s cooperation with the Dongfeng concern has gone much further than with FAW – it is planned to fill the production site in Izhevsk with Dongfeng cars.
“Dongfeng is one of three concerns that have circumvented sanctions. Its main counterparty is Motorinvest, which assembles cars in Lipetsk. But even at the AvtoVAZ plant in Izhevsk, a test meeting is almost taking place.”
– Tsyganov told socialbites.ca.
The official representative of AvtoVAZ refused to make any comments on interaction with partners.