AvtoVAZ to Launch Localization Project for Lada Models in Iran

AvtoVAZ, Russia’s largest carmaker, plans to localize Lada assembly in Iran with new dealerships, aiming to introduce its latest models, including the Iskra. CEO Maxim Sokolov highlighted the competitive edge of this venture while addressing the historical presence of Lada in Iranian markets. Despite earlier obstacles due to U.S. sanctions, strengthened ties between the two nations are facilitating this move.

AvtoVAZ, recognized as Russia’s leading car manufacturer, is making plans to initiate a localization project in Iran. The focus of this project will be the assembly of its renowned Lada model. Maxim Sokolov, the CEO of AvtoVAZ, discussed this developmental strategy on Tuesday, emphasizing the potential competitive advantage this venture could provide for the company as it establishes assembly lines and dealerships within Iranian territory.

Sokolov stated, “we are betting heavily on the Iranian direction and expect that our dealership will open there soon”. This indicates a strong commitment to penetrating the Iranian market. He further mentioned that an Iranian business partner, whose identity has not been revealed, expressed interest in the complete lineup of AvtoVAZ’s Lada models, including the recently launched Iskra model.

The Iskra model is expected to stand out, as Sokolov pointed out, it would be “one step ahead” of most vehicles presently produced and assembled in Iran. Looking towards 2025, AvtoVAZ aims to amplify its Lada exports, with a particular focus on markets in Iran, Kazakhstan, and Vietnam, according to various company announcements.

The history of Lada models in Iran dates back to the 1970s, when they were well-regarded for their safety and reliability. The company’s endeavors to enter this market, however, have been met with hurdles, primarily resulting from U.S. sanctions imposed on Iran in recent years.

Nevertheless, a notable shift has occurred as cooperative ties between Iranian and Russian automotive companies have strengthened, facilitating the entry of Russian vehicles into Iran. Since early 2022, this collaboration has deepened, particularly after many global automotive firms, including Renault, who previously held stakes in AvtoVAZ, exited the Russian market due to sanctions stemming from the ongoing war in Ukraine.

Additionally, Iran’s two biggest car manufacturers, IKCO and Saipa, have embarked on contracts to export vehicles and automotive components to Russia. There are also discussions about potential joint manufacturing projects between companies from both nations in the future.

AvtoVAZ is gearing up to launch a localization initiative in Iran, bringing its Lada models to the market through assembly lines and dealerships, as stated by CEO Maxim Sokolov. The Iskra model, which is part of the lineup, is anticipated to surpass existing cars in Iran in terms of technological advancements. Despite previous challenges, the evolving relationship between Iranian and Russian automotive industries presents promising opportunities for both sides.

Original Source: www.presstv.ir