The plan to relocate Lada Largus production from the Tolyatti facility to Izhevsk is projected to need about 2 billion rubles in extra funding. This estimate comes from statements attributed to Maxim Sokolov, the company president, and was reported by RIA Novosti as part of their coverage of AvtoVAZ’s strategic shift. The move is framed as a targeted step to improve capacity utilization and strengthen long-term competitiveness for the automaker.
Speaking about the relocation, Sokolov framed it as more than a one-off expense. He explained that shifting Largus production would require an expanded investment program, with roughly 2 billion rubles additional to equip the Izhevsk site. The funds would cover machinery, installation work, and the reorganization of assembly lines to align with the new site’s workflow. He described the Largus as a popular, profitable model and expressed confidence that the capital deployment would yield solid returns as demand remains strong and efficiency gains accumulate over time.
The corporate timetable outlines a phased transition: AvtoVAZ announced in mid-August that Lada Largus production would cease at the Tolyatti plant. Starting in September, the necessary equipment would be moved to Izhevsk, with Largus production scheduled to resume in 2024 at the new location. This shift is paired with broader plans to increase output of the updated Lada Vesta at the Togliatti plant, signaling a realignment of product lines across the production network to match changing demand and optimized capacity at each site.
Earlier comments from Maxim Sokolov in August 2022 highlighted another shift involving Vesta production: the plan to move Vesta manufacturing from Izhevsk back to Tolyatti was projected to require about 1 billion rubles in investments. Analysts noted that the current decision could mirror or exceed that investment within a year, underscoring how agile capital allocations must be in response to market conditions and strategic goals. This context helps explain why AvtoVAZ presents these moves as part of a tightly managed, long-term strategy to optimize the company’s manufacturing footprint and responsiveness to evolving demand patterns in North American and European markets as well as domestic customers.
Reporting on recent developments has also highlighted the cost position of the Largus in the latest batch, with a price tag around 2 million rubles per unit. This figure provides a benchmark for assessing the financial impact of the relocation, including anticipated savings, potential pricing considerations, and the overall margin profile that informs management’s view of the project’s viability. The overarching narrative around the Largus transfer encompasses immediate capital needs and the expected shifts in manufacturing efficiency, product mix, and the company’s ability to scale output in line with demand, market conditions, and ongoing product updates. Source attribution: AvtoVAZ corporate communications and market coverage by RIA Novosti.