Russia’s automotive industry has crumbled quite a bit after the sanctions imposed by the European Union. However, Lada is planning to ramp up production by introducing new models for its future with an annual production of half a million cars. After the Russian invasion of Ukraine, several countries including Europe have put sanctions on Russia putting its supply chain to a halt. The Renault Group exited the brand by selling its assets to the Russian government. Lada is forced to sell its cars without airbags, ABS, and air-conditioning systems due to the sanctions that have tampered with its business.
About:
According to New Europe, Maxim Sokolov, President, and CEO of Lada proposed new Lada models to the board. In talks with Easter Economic Forum, Sokolov said, “After the previous shareholders Renault company had left in May, the company stood idle for more than two months. But we managed to set up new production chains and logistics and safeguard the supply of components for the base models”. The company was supposed to unveil its new lineup of cars based on the new CMF architecture like Dacia. Lada could rely on using older platforms for its new models without the Renault-Mitsubishi-Nissan alliance.
Russian markets are different, Europe’s emission laws don’t apply there so Lada can use older parts. The company is also developing its first EV, the e-Largus concept, and will be based on Renault’s BO. The Russian company plans to make over 500,000 units annually with most made at the Togliatti plant. Renault who had invested billions of dollars in the plant, the projected numbers are far low than last year.
More:
The auto market took a giant hit with car sales lower than 75 percent compared to last year. According to the Association of European Businesses )AEB), the numbers were good in August with 62 percent in sales.