Lada faces risk of losing top spot in Russia as major competitors enter

Article by Christian Andrei, on May 24, 2012

Lada is facing pressure in defending its position as the long-standing dominant brand in Russia, as major vehicle manufacturers enter into the market. With Volkswagen and Ford expanding their operations, and AvtoVAZ dismissing older car models, the share of Lada in the Russian vehicle sales is estimated to fall to 20% in 2013 from 29% percent in 2010, the data from IHS Automotive revealed.

The Russian customers' shifting loyalties threaten an expansion plan of Renault-Nissan to control Lada-maker AvtoVAZ in an effort to dominate a market poised to be the biggest in the European region by 2014, when it is predicted to increase 28% to 3.4 million automobiles, the country's industry ministry stated.

 Buyers such as child psychologist Olga Sorokina do not want to own a Lada any longer. She already has a range of options today, unlike in the past. Sorokina shared that she is considering an Opel Corsa, after having to fix "almost everything" from the transmission to the mirrors on her 2006 Samara sedan. The deepening partnership of Renault-Nissan and AvtoVAZ has not won her Sorokina over. She related that she is "a bit skeptical."

Moreover, she shared that she would consider an automobile manufactured by the Togliatti-based automaker only after "positive feedback," even if it is being marketed as a Renault. Analyst Erich Hauser at London-based Credit Suisse commented that it is "just about the only white spot on the world map that's left for Renault to grow." He explained that although they are purchasing the "biggest guy in the room," there are "a lot of uncertainties in the deal."

He also stated that for the time being, rivalry is not getting any easier. In 2011, Ford entered into a joint venture with OAO Sollers, which is the third biggest automaker in Russia. The partnership will manufacture Explorer SUVs and other models. Ford has the capacity to produce 125,000 Focus and Mondeo units annually its St. Petersburg factory. [source: Autonews]

Topics: lada, russia

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

For those who love driving, future autonomous cars should be like the Toyota Concept-i that is drawing in a multitude of visitors at the 2017 Consumer Electronics Show in Las...
by - January 15, 2017
Things are looking good at Rolls-Royce Motor Cars as the British luxury carmaker impressed by posting a six-percent jump in deliveries in 2016. Rolls-Royce’s 2016 deliveries of 4,011 units in...
by - January 15, 2017
British luxury sports car maker Jaguar is introducing a bevy of subtle updates to the 2018 Jaguar F-Type Facelift. However, these updates are so subtle that they are barely noticeable...
by - January 14, 2017
As far as Automobili Lamborghini S.p.A. is concerned, 2016 was a very fruitful year. This is all due to the fact that the luxury sports carmaker has delivered the most...
by - January 14, 2017
Earlier reports revealed that Infiniti was at the point of considering an electric car for the future. Prior to this, the company has in fact unveiled two concepts already--- the...
by - January 13, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries