AvtoVAZ Pursues Localization Project for Lada in Iran

AvtoVAZ, Russia’s top carmaker, plans to localize production in Iran, focusing on assembling Lada models. CEO Maxim Sokolov noted potential competitive advantages and local interest, particularly in the new Iskra. The initiative looks promising, despite challenges posed by US sanctions, and aims to boost exports significantly by 2025.

Russia’s leading automaker, AvtoVAZ, is looking to roll out a localization project in Iran that involves assembling its latest Lada model. Maxim Sokolov, the CEO of AvtoVAZ, announced plans on Tuesday to create assembly lines and dealerships in Iran, which he believes will provide the company a “certain competitive advantage.” This is an interesting development given the geopolitical climate.

Sokolov expressed optimism about the venture, stating, “… we are betting heavily on the Iranian direction and expect that our dealership will open there soon,” according to the Russian news agency Tass. He indicated that an unnamed Iranian partner is interested in AvtoVAZ’s complete product lineup, including the new Iskra model, which Sokolov claims will outpace most vehicles assembled in Iran currently.

Looking ahead, AvtoVAZ has announced a goal to boost its exports of Lada vehicles by 2025, specifically targeting markets in Iran, Kazakhstan, and Vietnam. This focus on Iran is particularly intriguing, considering that many Iranians fondly remember the older Lada models, which were known for their robustness and dependability back in the 1970s.

Of course, getting into the Iranian market hasn’t been smooth sailing for AvtoVAZ, particularly due to ongoing US sanctions. These restrictions have complicated trade relationships and made it harder for new automotive ventures. Nevertheless, there seems to be a shift, as Russian-Iranian cooperation in the automotive sector has been strengthening.

Since the beginning of 2022, following the exit of many global automotive players from Russia due to Western sanctions, including Renault, the landscape has changed quite a bit. Local Iranian automakers, such as IKCO and Saipa, have already signed contracts to send cars and parts to Russia, hinting at a new era of cross-border manufacturing.

As interest from both sides grows, reports suggest that automotive firms in Iran and Russia are looking to kick off joint manufacturing projects too in the near future. This could potentially redefine the automotive supply chain for both nations and pave the way for further economic cooperation.

AvtoVAZ aims to kickstart an assembly project in Iran, boosting the presence of Lada models there. CEO Maxim Sokolov is optimistic about the venture, highlighting the potential competitive benefit and local interest in their product range, especially the Iskra model. While there have been obstacles due to US sanctions, recent enhancements in Iranian-Russian automotive partnerships could facilitate entry into this market. Plans also include increasing exports to Iran, Kazakhstan, and Vietnam by 2025, signaling a new chapter for AvtoVAZ amidst changing geopolitical dynamics.

Original Source: www.presstv.ir