Maxim Yuryevich, what is AvtoVAZ breathing now?
— The most difficult period for us is over. We managed to launch the first line of the conveyor (Granta), then the second line (both Niva). We obtained the last batches of Largus and Vesta from the parts stock, which resulted in a total of three thousand extra cars. And already in August we reached almost the same production figures as a year ago. We produced 19,000 vehicles in August 2021 and 18,800 vehicles in August this year. This made it possible to recover the loss after the results of the first seven months and towards the end of the year we also have to take care of the operating result.
Total this year we need to make about 220 thousand cars. Of course, if the general situation does not deteriorate dramatically. We live like on a volcano. Every day some or other risks are activated, which we have managed successfully so far. For example, we see targeted sanctions, some global suppliers unexpectedly stop supplying key components that are not on the sanctions lists. That is, the game no longer runs according to the rules.
Our engineering and procurement services work around the clock – and so far we solve any problems that arise. In order for the conveyor to operate without interruption, some components even had to be transported by aircraft in hand luggage. But sometimes we still produce incomplete cars, which we then finish and put up for sale – according to the high quality standards set when interacting with Renault.
What’s going on with Vesta?
– The transfer of production to Togliatti is in full swing. I do not doubt that in March 2023 we will start serial production of a new generation Vesta. At the beginning of November, the first test body will be welded. Then there will be a period of debugging the whole assembly process. Most importantly, our engineering has time to solve the component problem.
What is Vesta’s localization rate?
– If we talk about first-tier suppliers, Vesta’s localization level is about 85%. If you look deeper, taking into account sub-suppliers, the percentage of localization drops seriously. But we have to be on time with all parts by March. Usually such projects are completed within a year, we have to keep it within six months.
Vesta should play a very important role: we plan to produce up to 14,000 cars per month. And the overall production plan for 2023 for all models is 500,000 vehicles. We have already reached 40% share of the Russian market and next year we may be able to reach 50%.
In other words, Vesta NG is not simplified?
– It will fully comply with the new generation Vesta, which we presented in February and which, as far as I know, you have seen with your own eyes. We will try to keep as many options as possible, including ABS and airbags. We will implement ESP a little later.
And even the machine will be on Vesta?
– Not yet. This is an extremely difficult task. If you develop a machine yourself, it will take at least three to four years. For this to be cost effective, a large volume of output is required and expensive equipment has to be purchased.
But it is possible to produce a box under license – in Russia or on the territory of the customs union, including in cooperation with other manufacturers. But this is not less than a year and a half.
Does this mean you are looking for a machine partner in China?
“We will not focus only on China. There are also Iran, India and other countries with which we have good trade relations.
But even the licensed release of the machine is import dependent? And do I understand correctly that you are looking for an automatic transmission that can be mounted on various models with minimal adjustments?
– Right. U.S we need a universal solution: the more we buy the same components, the cheaper the production will be and the easier it will be to supply spare parts.
And of course, even releasing a licensed assault rifle involves the supply of many components from abroad. Synchronization rings, friction clutches, gears, shafts, materials and technologies… This is not a problem for AvtoVAZ – these are questions for manufacturers of rubber products, for metallurgy, for spraying metal surfaces, for heat treatment. We are working with the Ministry of Industry and Trade to find a consistent solution to these issues, but this cannot happen quickly.
We tell you about other novelties from AVTOVAZ, including a crossover based on Vesta. Come more often!
- Vesta’s production moved to Tolyatti. What will happen to the quality? Expert opinion here.
- “Behind the wheel” can also be read on VKontakte.