AvtoVAZ Pursues Localization Project for Lada in Iran

AvtoVAZ plans to assemble Lada models in Iran through a localization project. CEO Maxim Sokolov highlights the competitive edge this will provide. The company aims to expand exports towards 2025, particularly in Iran, Kazakhstan, and Vietnam. Growing collaboration between Iranian and Russian automotive sectors may facilitate AvtoVAZ’s market entry, despite previous hurdles from US sanctions.

AvtoVAZ, the leading car manufacturer in Russia, is setting its sights on launching a localization project in Iran. The company intends to assemble the latest version of its much-loved Lada model in the region. CEO Maxim Sokolov stated on Tuesday that establishing assembly lines and dealerships would offer AvtoVAZ a “certain competitive advantage.”

He further emphasized the company’s strong commitment to the Iranian market, expressing optimism regarding the opening of a dealership soon. Notably, he mentioned an unidentified business partner from Iran who has shown interest in AvtoVAZ’s entire Lada product lineup, which includes the new Iskra model. According to Sokolov, the Iskra will be “one step ahead” of existing vehicles produced locally.

AvtoVAZ’s strategy involves expanding its Lada exports in 2025, particularly targeting the markets within Iran, Kazakhstan, and Vietnam. There is a nostalgic fondness for Lada cars among Iranians, especially for the older models known for their reliability and safety since the 1970s.

However, the path to entering the Iranian market has not been smooth for AvtoVAZ due to the complications arising from US sanctions on Iran. Recently, a surge in collaboration between Iranian and Russian automotive firms has somewhat eased these obstacles, facilitating the entry of Russian vehicles into Iran.

Since the onset of the Ukraine conflict in early 2022, many international car companies, including Renault—previously a shareholder in AvtoVAZ—have exited the Russian market, creating opportunities for Russian automakers. Iran’s major local firms, IKCO and Saipa, have begun signing contracts for the export of vehicles and parts to Russia, indicating a burgeoning partnership.

Reports suggest that the automotive sectors of both countries are keen to explore joint manufacturing projects moving forward, hinting at a future of collaborative efforts within the industry.

AvtoVAZ is moving forward with plans to establish assembly operations in Iran, aiming to rejuvenate the presence of its beloved Lada brand. Despite challenges posed by sanctions in the past, enhanced collaboration between Iranian and Russian automakers may offer a pathway to success. The anticipated introduction of new models, like the Iskra, could present a significant advancement in the market. Only time will tell how this venture unfolds and impacts both markets.

Original Source: www.presstv.ir