AvtoVAZ is developing a new front-wheel drive crossover based on the LADA Vesta, which will partly replace the popular Renault Duster, which was discontinued in Russia this year along with other models of the French brand. AvtoVAZ President Maxim Sokolov spoke about this in an interview with Forbes.
“The plans include the development of a highly localized front-wheel drive SUV category crossover on the Vesta platform. This is no longer in class B, but closer to C – we call it B +. We expect to start production of this car at the end of 2025. Part of the audience aimed at Duster will buy the Vesta B + crossover. And part will go to Niva Travel, ”said the head of AvtoVAZ.
Maxim Sokolov added that it is not economically feasible to produce Duster itself today, despite the fact that the license agreement with Renault allows it to be done. And just restarting Duster production in Russia is risky due to sanctions.
“The agreement allows it. Only a 4% royalty must be paid on the sale price of each car. This is a high financial burden, given that profitability in the automotive industry is low – 4-5.5%. But, I repeat, this clause of the agreement is in any case unrealizable due to sanctions pressure on our country. While we have not completely completed the localization or replacement of supplier countries, our previous shareholder (Renault, – approx. Trashbox.ru) continues to supply us with a certain set of components, ”said the president of AvtoVAZ.
Maxim Sokolov also announced a possible technical partnership with foreign automakers. According to him, now the company is discussing the possibility of joint assembly of cars of classes C and D for the Russian market with partners from friendly countries at one of the sites. Sokolov did not specify which partners he was talking about, noting that until the agreements become final, he will not announce cooperation.
Source: Trash Box
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