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Lada Iskra Production Delayed: Sanctions Impact Russia’s Auto Industry

by Priya Shah – Business Editor

Lada Iskra‍ Production⁢ Delayed, Reliance on imports Deepens Russian Auto ⁣Industry Woes

Moscow -⁢ The launch ‍of Lada’s highly anticipated Iskra model is facing⁢ significant⁢ delays, ⁤with mass production now expected to begin no earlier than spring​ 2026 – nearly ⁣two years after its initial unveiling and three‌ years beyond the original ⁣schedule⁢ established⁢ during ​its​ planned collaboration with Renault. The setbacks underscore the deepening‌ crisis within Russia’s‍ automotive ⁤sector, increasingly reliant on imported components, notably from ‌China and Turkey, ⁢following disruptions caused by geopolitical events.

The‍ delays⁢ and import dependencies highlight the devastating impact of recent events on​ Russia’s automotive manufacturing capabilities.Once home ⁤to production facilities ⁤for major international⁣ brands like Renault, ‌Kia, Hyundai, Skoda, and Volkswagen, the Russian market‌ now‌ largely depends on Chinese⁣ products and struggling⁢ domestic efforts‍ to revive iconic names⁣ like Volga⁤ and Moskvich. Even the domestically-branded lada Granta,⁤ currently⁤ considered the most “independent” Russian vehicle, still relies on​ imported components for 54.3% of​ its parts.

According to the Russian central‍ scientific ⁤and research institute ‍of cars and engines, the Iskra’s ⁣production‌ challenges⁤ stem from ‌component sourcing. The​ institute’s ​assessment reveals a growing⁤ dependence on foreign suppliers, mirroring the broader industry trend. Simultaneously, the recent ⁢launch ⁤of the Moskvich 8, another Russian-branded vehicle, has been revealed as essentially​ a rebranded Chinese⁣ model, experiencing a six-month delay⁣ to ⁢market. These developments demonstrate the ‌extent to which Russia’s automotive industry has been reshaped, ‍and‍ diminished, by recent geopolitical shifts.

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