AvtoVAZ promised new models. What will experts present? Estimated the production of Chinese cars at AvtoVAZ 05.12.2022, 19:08

AvtoVAZ is discussing with partners from friendly countries the establishment of the production of cars in segments that no other existing Russian automobile plant currently produces. Maxim Sokolov, head of AvtoVAZ, spoke about this in an interview with Forbes magazine.

“We are an open company. At the moment, the possibility of assembling C- and D-class cars is being discussed at one of the sites, perhaps including Izhevsk, together with partners from friendly countries,” he said.

Experts interviewed by socialbites.ca say Chinese automakers seem most likely as a possible partner for such a project.

I think Chinese companies JAC and Dongfeng are primarily considered partners of AvtoVAZ. KamAZ cooperates with JAC, Evolute works with Dongfeng, so the connections were made.

That’s the general feeling. Such machines are strategically needed, ”says Sergey Burgazliev, an independent consultant in the automotive industry, to socialbites.ca.

There are a lot of crossovers in the Dongfeng lineup, including the IX7, which belongs to the segment named by the head of AvtoVAZ. This Chinese brand produces the A9 sedan in the same segment as the Toyota Camry, which left the Russian market, an expert gives an example. This model, which is over 5 meters in length, is equipped with 1.8-liter turbo engines with 204 horsepower.

In case of agreement, such cars will have to be assembled using the “screwdriver” method for at least the first year and a half,

because the technological capabilities of AvtoVAZ are not designed for the production of cars of this size. This is especially true for the paint industry.

it adds. At the same time, the production of cars in the C and D segments will most likely start under the Lada brand.

Igor Morzharetto, partner of the Avtostat analytical agency, points out that in these market niches, the Russian market is in dire need of sedans to upgrade corporate fleets.

“First of all, Russia needs sedans – tens of thousands, if not hundreds.

It is necessary to update the taxi fleet, this requires C-class sedans, it is also necessary to change the state and municipal passenger transport. There are also many state-owned companies,” says Morzharetto.

A dedicated customer needs time to get used to new brands and realize that the product is of high quality. Morzharetto argues that now Chinese automakers are considering entering the Russian market, perhaps bringing their cars through local assembly. This explains the appearance of local brands such as Moskvich and Evolute in Russia. He is also sure that the Chinese partners are afraid of secondary sanctions.

“FAW does not work directly in Russia, as it is a state-owned company. Dongfeng has great interests in Peugeot-Citroen and cooperating with other global automakers, so it does not work directly in Russia either. On the whole

There are about 120 major automakers in China willing to take risks.”

– summed up the interlocutor.

Of the three major Chinese automakers, only Chery has no domestic production in Russia. Haval has its own factory in the Tula region, while Geely produces cars in Belarus. Maxim Kadakov, editor-in-chief of Za Rulem magazine, says Chery’s arrival at AvtoVAZ is theoretically possible.

“The model range of this company is wide, there are both crossovers and sedans – for example, Arrizo 7, which only did not enter the Russian market due to the pandemic. But here it is necessary to calculate the business rationale, because the organization of production is an investment,” said Kadakov socialbites.ca.

He points out that SKD is irrelevant because of taxes, which practically equate to the fares of new cars, while equipment reconfiguration was necessary to set up production.

Arrizo 7, Arrizo 8 sedans are one of the possible options. If they keep the retail price of such cars within 1.5 million rubles, then this makes sense. ”

– says Kadakov.

If the Dongfeng A9 replaces the Toyota Camry, Sergey Burgazliev believes that this model will be successful in the market if it is 15% cheaper than the “Japanese” model.

“If the car will perform in the format of segment D, Toyota Camry and Nissan Teana, the optimal price for it is 2.2-3 million rubles. For cars of a lower class – about 500 thousand rubles cheaper, ”she estimates.

Sergey Tselikov, general manager of the Avtostat analytical agency, says that there is currently a serious shortage of cars in the market in most segments, that in the current conditions the auto industry cannot keep up with the needs of the market.

“Friendly countries with the auto industry include China, where the auto industry is very old, and India, in theory. But they will most likely work with the Chinese,” said Tselikov, agreeing with other experts.