AvtoVAZ remains entangled in sanctions lists in the United States, with ongoing issues around banking payments and supplier separation. Amid these tensions, the company has not spoken openly about the future of the effort to unite the Lada X-Cross 5 with the Chinese FAW Bestune T77 under a Lada badge.
A formal ceremony marked the production kickoff for the Lada X-Cross 5 in St. Petersburg, timed to coincide with the International Economic Forum in St. Petersburg held in the summer of 2023. Attendees included the head of the Ministry of Industry and Trade, Denis Manturov, AvtoVAZ president Maxim Sokolov, and the governor of St. Petersburg, Alexander Beglov. Since then, the crossover has not seen an official launch, with pricing and configurations still undisclosed. On Lada’s official site, the model appears only in a brief slide reading Coming soon.
The press office of AvtoVAZ avoided addressing questions from socialbites.ca about the fate of the Lada X-Cross 5 project. Reports suggesting the project might be interrupted were not denied, and no clear comment was given regarding potential collaborations with other brands.
One representative stated that there are no confirmations of any partnerships and warned against speculating on such matters. The official spokesperson, Sergei Ilyinsky, emphasized that inquiries on this topic would not be commented on.
Speculation has circulated that AvtoVAZ could pivot toward producing Chery vehicles as an alternative to FAW cars. A VKontakte post from the Avtograd public page cited insider information from AvtoVAZ, noting that a test run of the Chery Tiggo 7 Pro was observed at the AvtoVAZ engineering center in Tolyatti.
Sergei Tsyganov, who runs the Telegram channel Russian Automobile, told socialbites.ca that Chery cars were in St. Petersburg, with preparations for production at the Lada plant near completion. He claimed that a production setup for Chery Tiggo 7 Pro Max would begin, including body welding and localization of certain equipment. The project is described as being nearly finalized rather than speculative.
The potential shift to Chery is viewed by Tsyganov as advantageous for Chery’s strategy to solidify presence in the Russian market, particularly given rising local content requirements and recycling fees. He suggested the move would suit those favoring direct imports more than AvtoVAZ’s needs.
According to Tsyganov, AvtoVAZ is unlikely to publicly declare the end of the FAW partnership. Instead, it may attempt to quietly terminate the collaboration. Public statements today tend to avoid direct admissions or refusals, favoring non-committal messaging.
Chery’s Russian office has not confirmed or denied joint production with AvtoVAZ in St. Petersburg, offering no comment to socialbites.ca. FAW representatives did not respond to requests for comment either. AvtoVAZ’s official line remains non-committal about any partner or project.
While AvtoVAZ’s ties with FAW appear untenable, the option of reassigning the Nissan plant for another partner has been floated. The St. Petersburg facility reportedly has the capacity to host a new operation, and discussions with other potential partners are ongoing. Analysts note that selling the plant to Chery could be possible only at a substantial discount.
Igor Morzharetto of Autostat pointed out that FAW Bestune T77 cars have reportedly reached St. Petersburg and acknowledged clear obstacles to assembling the model there under the Lada X-Cross 5 banner. Some units have been produced but not yet sold, and AvtoVAZ still lists the model on its website, suggesting ongoing deliberations with potential partners.
Morzharetto observes the broader landscape of Chinese automakers in Russia, noting the complexity of ownership structures and the presence of sub-brands such as Chery, Jetour, and Kaiyi. The future of manufacturing in St. Petersburg remains uncertain as sanctions influence decisions by both Russian and Chinese interests.
Industry insiders agree that the latest sanctions package has significant implications for Chinese partners, complicating the already delicate calculus around production in Russia and the feasibility of joint ventures in St. Petersburg. (Source: socialbites.ca)