Maxim Yuryevich, what is AvtoVAZ breathing now?
– The toughest stretch is behind them. The factory successfully rolled out the first line for Granta, followed by the second line for both Niva variants. The company also drew down the last batches of Largus and Vesta from its parts stock, adding three thousand extra cars to the tally. By August, production nearly matched the prior year, with 19,000 vehicles built in August 2021 and 18,800 this August. This uptick helped recover the losses from the initial seven months, and the year is rounded out with a focus on preserving operating results.
Overall, the target for the year remains around 220 thousand cars, assuming the macro situation does not deteriorate sharply. The team operates under constant, high vigilance, like living atop a furnace. Every day brings new risks—yet they have been managed so far. Targeted sanctions linger, and some global suppliers unexpectedly halt deliveries of crucial components not listed as sanctioned. In short, the game has shifted away from a predictable playbook.
Engineering and procurement teams operate around the clock, and so far they resolve every disruption. To keep the conveyor running, some components were even airlifted in carry-on luggage. There are times when cars roll off the line in incomplete form, only to be finished later and sold in line with the strict quality standards upheld in collaboration with Renault.
What’s going on with Vesta?
– The shift of production to Togliatti is advancing on schedule. There is confidence that serial production of a new generation Vesta will begin in March 2023. Early November will see the first test body welded, followed by a period dedicated to debugging the entire assembly process. The engineering team is prioritizing a solution to the component shortage as a top objective.
What is Vesta’s localization rate?
– For first-tier suppliers, localization sits around 85%. When the broader network is included, the figure drops due to sub-suppliers, but the goal remains clear: align all parts by March. Typically, such projects unfold within a year, but this team intends to compress the timeline to six months.
Vesta is slated to play a pivotal role, with a target of up to 14,000 cars per month. The overall 2023 production plan encompasses 500,000 vehicles across all models. A 40% share of the Russian market is already in sight, with a possible rise to 50% next year.
In other words, Vesta NG is not simplified?
– It will fully align with the new generation Vesta unveiled in February, which observers have seen firsthand. The aim is to preserve as many options as feasible, including ABS and airbags, with ESP to be implemented a little later.
And even the machine will be on Vesta?
– Not at this stage. Building a machine in-house is an extremely long endeavor, potentially three to four years. Cost efficiency requires a large production volume and substantial investment in equipment.
Licensing a packaging or machine solution remains a viable option, either domestically or within the customs union, and often in collaboration with other manufacturers. Even so, this would take a year and a half or more.
Does this mean a machine partner in China is being sought?
– The search will not be limited to China alone. Iran, India, and other partners with strong trade ties are also under consideration.
But even a licensed machine release hinges on imports? And is the goal a universal automatic transmission to fit many models with minimal adjustments?
– Yes. A universal solution in the U.S. market is ideal: higher common purchases lower production costs and simplify spare-parts supply. Even with a licensed release, many components must be sourced abroad, including synchronization rings, friction clutches, gears, shafts, and treated materials. The company is coordinating with ministries and industry players to map a practical path, but such work cannot be rushed.
We mention more AVTOVAZ updates, including a crossover based on Vesta. Check back for updates!
- Vesta production moved to Tolyatti. How will quality evolve? An expert analysis is available.
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