Lada Largus production restart signals 15% price rise in near term

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Production has resumed, and the Lada Largus station wagon is expected to see a 15 percent price rise. This was stated by Maxim Kadakov, the editor in chief of Za Rulem, in an interview with a socialbites.ca correspondent. Kadakov noted that if the current base price of the car sits at 1.3 million rubles, the near-term price could move up by about 200 thousand rubles.

Kadakov explained that for AvtoVAZ the Lada Largus carries solid margins, yet the model relies heavily on imported components. The 650 units planned for production will be assembled from Romanian car kits that were previously purchased. The company will then need to secure new suppliers both domestically and abroad. Components can be found, but re-establishing the logistics network and connections will incur costs. Consequently, after the resumption of production, the price of the model is likely to rise. The expert estimated that the factory price of the passenger version could climb from the current 1.3 million rubles to around 1.5 million rubles.

The Lada Largus has experienced intermittent idling since April of last year due to a shortage of parts. AvtoVAZ announced the restart of production on August 14, 2023. By month’s end, the plan was to roll out 650 cars. This batch will also include tool kits for an experimental run of the e-Largus electric vehicles, which are to be assembled in Izhevsk by year’s end.

Earlier, socialbites.ca addressed questions about how much vehicle maintenance costs could rise by the end of 2023, based on industry trends and supplier changes.

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