AVTOVAZ on distant borders: who needs Ladas abroad?

AvtoVAZ’s main trump card on the European market has always been the price of the car and its maintenance. And the same will happen with new models. In Russia, Vesta costs from 514,000 rubles in the basic version, which at the current Central Bank exchange rate is approximately 6,500 euros. A little more expensive - 7300 euros - and it turns out to be XRAY.

VAZ (and not only) cars were always exported to the countries of the former socialist camp and generally not very developed countries in huge quantities. Moreover, in the first years after the launch of the plant in Togliatti, most of the cars were sent abroad. But deliveries to Western Europe or America did not work out for our automobile industry. The competition there is colossal, and it was extremely difficult for a domestic car to win it against advanced foreign cars on their territory.

Lada Vesta and Xray: from concept to assembly line

AiF / Alexey Sivashenkov

News for Europe

Lada Vesta SW Cross
Lada Vesta SW Cross

AVTOVAZ begins exporting the Lada VestaSW station wagon and its off-road version Vesta SW Cross to Europe. Let us remind you that last year sales of this model sedan started in the markets of Germany, Hungary, Austria, Bulgaria and Lithuania. And as AVTOVAZ says, the new product was very well received by European buyers. Thus, at the end of 2022, Europeans bought 5.2 thousand cars of the Russian brand - 29% more than a year earlier. And this growth was largely ensured by Vesta, whose sales amounted to more than 900 vehicles, according to JATO Dynamics. More than half of this amount came from Germany (470 units), another quarter from Hungary (230 units). As you know, these countries are the largest markets in Europe for AVTOVAZ, although the market share of the Russian brand there remains negligible. With the release of the Lada Vesta station wagon, the company expects that the new product will be in better demand due to its belonging to one of the most popular segments.

“With the advent of the new Vesta SW and Vesta SW Cross models, AVTOVAZ may be able to slightly increase Lada sales in Europe - by a maximum of several thousand cars per year. Even despite the popularity of station wagons among European consumers, competition in this segment is very high. I think that in the future Vesta will become AVTOVAZ’s bestseller in Europe due to the inevitable reduction in demand for the obsolete Lada 4×4,” comments Ivan Kondratenko, consultant-analyst at Frost & Sullivan.

According to Felipe Muñoz, an automotive analyst at the research company JATO Dynamics, the Lada Vesta station wagon will become more in demand in Europe than the sedan. It will sit between popular compact estates such as the Ford Focus, Opel Astra, Hyundai i30, Fiat Tipo and Dacia Logan MCV. And if the price positioning of the Vesta SW model is correct, AVTOVAZ has a chance to improve its position in the European market.

Long Niva, Italy

Price – €20,900

A brand new Niva with no mileage in Italy, manufactured in 2022. It’s even surprising how Russian cars ended up abroad: AvtoVAZ didn’t have any luck with official exports; our cars simply don’t comply with the strict environmental standards of the European Union.

And yet this is not an obstacle for true off-roaders: for a symbolic 20,900 euros (almost 1.8 million rubles!) Italian experts can afford a long-wheelbase 4x4. It is now Niva Legend with its original 1.7 liter engine, ABS, electric windows, heated front seats and other achievements of Russian industry.

At home, everything is the same, almost three times cheaper: the long-wheelbase Niva Legend today starts at 675 thousand rubles.

Also read: All the girls will describe themselves: what sellers write in advertisements for the sale of cars

More expensive than competitors

Lada Vesta SW

Indeed, the prospects for VAZ’s new product in Europe will largely depend on its cost in comparison with its competitors. Official prices have not yet been announced, but AVTOVAZ assures that the Lada Vesta station wagon will have “very good price positioning.” However, during the December premiere of the car at the Essen Motor Show, representatives of the local distributor said that a regular Vesta SW station wagon would cost approximately 15 thousand euros, and the SW Cross version - from 17 thousand. With such a price tag, the new product may turn out to be completely uncompetitive, because the direct rival of the five-door - the Dacia Logan MCV station wagon - in Germany costs from 8 to 14 thousand euros, and the basic Ford Focus station wagon is offered for 16 thousand.

Advantages and disadvantages of owning a Lada

Like any other car, the VAZ has its pros and cons. We will try to consider all aspects of ownership in more detail.

pros

You should start with the positive aspects. And they are as follows:

Price. The cost of the new Lada is much lower than that of any other car. AvtoVAZ still makes cars that are the cheapest way to stay mobile.
Availability of spare parts and ease of maintenance. Even a student can support Lada. This car is suitable for both a retiree and a beginning student. The machines are incredibly simple, so everything can be repaired within the confines of any garage. In addition, experienced car owners have come up with a bunch of ways to fix some problems using the most non-standard methods, without using spare parts.
There are all the necessary options. AvtoVAZ is constantly developing and adopting technologies from European Renault. The modern Lada has everything you need - from electric windows to climate control.
Lada produces one of the most affordable and best SUVs - Niva. At the same time, Niva is popular even abroad.

Unfortunately, all the advantages of these cars are only operational. The machines are built on the principle: the simpler the better. And this leads to certain disadvantages.

Minuses

Alas, the advantages do not always manage to cancel out the disadvantages. Unfortunately, the Lada owner may encounter the following troubles:

Safety. Getting into an accident in a VAZ is the worst thing that can happen to a driver. Crash tests of Lada cars always pass the lowest threshold.
Comfort. Almost no model has good sound insulation. In addition, VAZ currently has only one car with enough space in the back - Vesta. Unfortunately, it is still far from large executive sedans.
Body. Despite new technologies for painting and galvanizing bodies, Ladas still rot. Moreover, corrosion attacks the body not from the outside, but from the inside. That is, the bodies are initially painted poorly.
Build quality and components. As before, the assembly of new Ladas is not at the highest level. Various flaws in the form of different gaps, creaky plastic and other shortcomings are present on most cars. Up to 100 thousand kilometers there will be no special problems, but when replacement of factory parts begins, the car owner will be faced with the worst quality of spare parts.

It is these disadvantages that force many buyers to make their choice in favor of a foreign car. At the same time, people are ready to switch to an old Ford rather than drive a new Lada.

Heading towards “third countries”

However, AVTOVAZ itself admits that the European market is not a priority for it today. The company’s strategic goal is to strengthen and strengthen its position in the CIS countries, followed in importance by the Middle East markets (Lada is already present in Lebanon and Jordan, there are other plans for development in this region), followed by Latin America (AVTOVAZ is already operating in Bolivia and Cuba) and, finally, Africa and Asia. Today Lada is present in 30 countries around the world, and only last year Russian cars appeared in China, Cuba and Jordan. In total, at the end of 2022, AVTOVAZ exported, with the exception of the countries of the Customs Union, 10.1 thousand vehicles, according to data from the Autostat agency. At the same time, 5.7 thousand of this amount were Lada 4x4 SUVs, another 2.2 thousand cars were Vesta sedans. In general, AVTOVAZ sent 24 thousand cars abroad, which is 31% more than in 2016. However, in the total volume of sales of the enterprise, exports occupy a small part - about 7%.

“AVTOVAZ’s products are objectively inferior to the world’s leading concerns in developed markets. In addition, the price of Lada cars abroad is higher than comparable locally produced analogues, due to all kinds of duties and excise taxes. One should also not discount the geopolitical tension between the West and Russia, which leaves its mark on economic ties, making it difficult for Russian businesses to enter foreign markets. Therefore, AVTOVAZ is looking for other opportunities and sales markets in developing countries with which Russia has developed relations. However, again due to the high price, the Lada's sales prospects in such markets are quite limited. A certain level of sales can be maintained through intergovernmental agreements on government procurement, as well as customs benefits for Russian automakers,” says Ivan Kondratenko.

Content

GAZ-69, USA
"Eight" - Korcz, Poland
Long Niva, Italy
New Niva, Bulgaria
Volga 2410, Germany

The domestic automobile industry has never been a full participant in the international car market, but rather a special niche. “Muscovites”, “Ladas” and “GAZs” flocked in a thin trickle to the countries of the so-called West and today they are rare, but they are still found on the secondary market. We will tell you in this article which Russian cars are sold abroad and for how much.

Lada will become a foreigner

Lada XRAY

In order to reduce its export costs, AVTOVAZ is discussing the possibility of assembling its models produced on the B0 platform at the facilities of the Renault-Nissan alliance abroad. Today, the Lada XRAY high hatchback and the Largus station wagon are produced on this platform, and a new generation of the Lada 4×4 SUV is being developed. Apparently, it is this model that has the greatest chance of obtaining “foreign citizenship.” Thus, according to Brazilian media reports, production of the new Lada 4×4 from 2022 can be established at the local plant of the Renault-Nissan alliance in the city of Sao Jose dos Pinhais, although AVTOVAZ itself denies this information. By the way, Lada cars were produced abroad before: the geography of AVTOVAZ’s external assembly in different years covered Greece, Finland, Ecuador, Uruguay and Ukraine. Today, all Lada models in Kazakhstan are produced from VAZ vehicle kits, and in Egypt, the Lada Granta sedan is produced at a local enterprise.

GAZ-69, USA

Price – $12,000

Real exoticism in America, though for some reason with a current Georgian flag on the license plate (a Soviet one would be more appropriate, but the owner is a gentleman). The seller states that the car is in new condition - the mileage is only 8,452 km, despite the fact that the car was produced in 1972.

The version, obviously custom, is slightly tuned: the car is converted into a pickup truck dear to the American heart, although in the original the canvas top covered both rows of seats.

The bidding for an old Russian car at an auction abroad starts at 12 thousand dollars - a little less than 900 thousand rubles at the current exchange rate. In Russia, a GAZ-69 can be bought from 65 thousand rubles (if it’s not very rotten).

Also read: There is room to spend half a million: what cars can you buy in Japan for 500 thousand rubles

Which Lada model is better to choose?

At the moment, the VAZ model range is limited to the following models:

Granta;
Xray;
Vesta;
Largus;
Niva;

The car should be selected based on your own needs.

For example, if there is a need to get home through snowdrifts, mud or fields, then the best choice here would be Niva. It has excellent maneuverability and has everything you need in its equipment.

Students, taxi workers and pensioners make their choice in favor of the simplest and cheapest Grant.

This compact car allows you to remain mobile, will not “undress” its owner, but has very little comfort.

Those looking for a more prestigious model should pay attention to Vesta and Xray.

These cars were built with foreign cars in mind and can truly surprise the buyer with their equipment, level of comfort and even safety.

Lada Largus is an excellent station wagon that is well suited for a large family, work or active recreation. Many cab drivers use this car for intercity trips.