Volga Revival: New Models, Localized Production, and Market Outlook

At the Digital Industry of Industrial Russia exhibition, three cars were showcased under the revived Volga badge. The first to reach the market is the D-class sedan named Volga C40, followed by the compact crossover K30 and the mid-size K40. All models come with 188 hp turbo engines and a seven-speed robotic transmission.

Production of Volga cars in Nizhny Novgorod is set to begin in 2024 by the company Passenger Car Production, which maintains no formal ties with the GAZ Group. Full-scale production is planned for 2025, with an investment of 60 billion rubles, roughly 662 million dollars. This plan was reported by Hit the Primer.

In the wake of foreign automakers retreating from Russia, this investment marks a record for the Russian automotive sector. The funds will cover research and development, as well as building a domestic parts base and manufacturing capabilities. The cars will be produced at the Nizhny Novgorod automobile cluster site, where Passenger Vehicle Production has leased facilities previously used for Volkswagen and Skoda contract production.

“I wish the steering wheel was Russian”

The exhibits were inspected by Russian Prime Minister Mikhail Mishustin, who criticized the steering wheel as Chinese-made and urged localization beginning with the simplest components.

“Where was your steering wheel made, Chinese? I wish the steering wheel was Russian. It is not as difficult as localizing the gearbox and other parts,” Mishustin remarked.

Volga cars borrow their bodies from the Chinese brand Changan, while sporting front bumpers and chrome radiator grilles with vertical slats reminiscent of the iconic GAZ-21.

The Volga models were not presented on the Russian market with their original Chinese names. The Volga C40 sedan mirrors the Changan Raeton Plus in appearance and specifications, and one such sedan without brand emblems appeared at GAZ in February 2024 near the workshop where Volkswagen and Skoda cars were assembled until 2022.

The Volga K30 shares its body shape with the Oshan X5 Plus C-class crossover. The larger Volga K40 SUV bears a striking resemblance to the Changan Uni-Z crossover.

Single copies of all three models were brought to Russia as alternative imports and offered for sale through classified ads. Changan Raeton Plus sedans were priced around 2.5 to 2.6 million rubles, the Oshan X5 Plus crossovers 2.4 to 2.7 million rubles, and the Changan Uni-Z 2.7 to 3.3 million rubles.

How much will “our” new Volgas cost?

Maxim Kadakov, editor-in-chief of Za Rulem, believes Volga cars based on Changan models will appeal to government agencies. He noted that orders from government bodies and state-owned enterprises are likely to be substantial, given the absence of a similar segment in Russia. XCite is expected to go on sale, alongside the Lada Aura, though the latter is described as an extended Vesta rather than a premium model.

Kadakov suggested that private buyers will also show interest, especially those who often purchase vehicles used by government officials. He predicted that the basic configuration could be priced around 2.5 million rubles, placing the Volga cars between the Lada Aura and the Aurus models produced at the former Toyota plant. He also expected rapid industrialization by GAZ in this project, stressing that the initiative is now entirely focused on this venture.

Igor Morzharetto, a partner at the analytics firm Autostat, warned that the revival of the Volga brand would require state support if recycling fees rise. He pointed out that the presentation occurred at a high-profile level with senior government officials, which signals potential backing. Morzharetto emphasized that the actual level of localization and any changes to the recycling fee would directly affect the supply of Volga vehicles to state institutions. He suggested that to stay competitive, new models should be priced below premium imports, with target prices around three million rubles or more depending on configuration.

Earlier attempts to replace Volga with foreign models

GAZ has previously attempted to produce foreign passenger cars under the Volga name, most notably in 2008 with the Volga Siber, a redesigned Chrysler Sebring released into the Russian market as a replacement for a model no longer produced in the United States. Sales were modest and the Siber was discontinued in 2010, with a total run of about 8.9 thousand units. The Nizhny Novgorod regional government provided financial support for the project at the time.