AvtoVAZ decided not to manufacture the Renault Duster under the Lada badge in Russia due to a shortage of necessary components. This stance was outlined by Evgeniy Shmelev, the company’s First Vice President for Strategy and Technical Development, in statements reported by a major Russian newspaper. The decision highlights the practical challenges of aligning a popular foreign model with local production capabilities when critical parts are unavailable or difficult to source domestically.
Shmelev noted that the Duster sold in Russia was predominantly the all‑wheel drive version. The team quickly concluded that recreating this configuration domestically, while ensuring a reliable supply of all required components, would be infeasible. He emphasized that more than nine out of ten Duster units in Russia were equipped with all‑wheel drive, making a version without that capability economically nonviable. Producing a lighter, non‑ AWD Duster would still require the same equipment and ongoing component replacements, which would not be cost effective or technically sensible.
Earlier discussions in May of the previous year suggested AvtoVAZ could begin producing a Duster under the Lada brand. Denis Pak, who later led the automotive industry and railway engineering department within the Ministry of Industry and Trade of the Russian Federation, spoke on the matter. Maxim Sokolov, who later became president of AvtoVAZ, described the situation as risky due to insufficient localization of Duster production and the high share of components subject to sanctions lists. This combination created a substantial exposure to supply instability and potential price pressures for any new manufacturing plan.
The broader context involves how sanctions and localization efforts shape the strategy of Russian vehicle producers. Officials stressed the importance of integrating more inputs locally to reduce dependence on external suppliers, while also navigating the regulatory and logistical hurdles associated with sanctions. The interplay between foreign‑brand models and domestic production capacity continues to influence decisions about which vehicles to assemble in Russia and under what configurations.
As for 2024 prospects, industry observers have contended that price adjustments at AvtoVAZ would be influenced by the level of localization achieved and the evolving component sourcing landscape. The balance between maintaining product appeal and ensuring cost‑effective production remains a central consideration for the company as it evaluates its model lineup and potential new assemblies in the face of market and policy dynamics.