European dealers stopped receiving Lada cars, the last shipment was shipped from the warehouse of the exclusive importer AvtoVAZ in Germany in March this year, and there will be no new cars. This was reported to Gazeta.Ru by the general distributor of AvtoVAZ in Europe Lada Automobile GmbH Deutschland.
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“Right now we have only a few Vesta machines in stock in our stock. Other cars have already been sold to our retailers. Last year, AvtoVAZ said it would gradually reduce supplies, now there are no more and will not be. It was reported that in three years the company may return, but this is hardly possible, ”a representative of Lada Deutschland told Gazeta.ru.
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According to the interlocutor, the likelihood of AvtoVAZ returning with the Lada brand is excluded due to the new marketing policy of the alliance (adopted as a response to the “coronacrisis”) of Renault-Nissan-Mitsubishi, of which AvtoVAZ is an integral part.
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Lada Vesta. Photo: Lada–
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According to the new doctrine, Renault and its budget brand Dacia will occupy a dominant position in the European market, while other members of the alliance will be able to attend this market only if their models do not compete with these brands. In Russia, the models of the Russian company just intersect with Renault products at a price.
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“I don’t know if they will be able to return to the European market in three years, but now there is no chance that they will succeed,” said the representative of the Lada general distributor in Germany.
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Lada Deutschland said that in view of the loss of Lada distribution, the company was forced to switch to sales of Chinese BAIC and JAC electric cars, as well as SeaDoo electrical equipment. The company AvtoVAZ confirmed the information that the supply of cars to the European Union has been stopped.
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“We have long stated that we are leaving Europe. New environmental requirements were introduced there, and it is not economically feasible for us to invest in engine refinement due to small sales volumes. As for the return – in the long run this can happen. It is too early to speak with which model yet, ”AvtoVAZ’s communications director Sergei Ilyinsky told Gazeta.ru.
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Lada Vesta. Photo: Lada–
Since the beginning of 2020, the EU has strict standards for CO2 emissions – for cars it should not exceed 95 g / km. None of the AvtoVAZ production vehicles meets these requirements. Obviously, AvtoVAZ vehicles imported in 2019 used previously issued certification documents.
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In terms of revenue, AvtoVAZ did not lose very much, but in terms of image, the losses are more noticeable, experts say. The latest revenue data (the joint stock company exercised the right to close information in 2019) of AvtoVAZ was dated 2017, when the company earned about 2.8 billion rubles from the sale of cars in the EU.
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The Lada line in Europe included the Granta, Vesta and 4×4 (Niva) models.
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In Europe, these cars were the most affordable along with the Chinese, for example, Niva was sold at a price of 12-15 thousand euros. But sales volumes were steadily falling; in 2018, the Russian company sold 5325 cars in Europe, mainly in Germany. For comparison, in 2018, 38 thousand Lada cars were exported.
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Now the whole policy of AvtoVAZ is determined by people from Renault, why should they promote products in Europe that potentially compete with Dacia and Renault, an independent automotive industry consultant Sergey Burgazliev wonders.
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“Though a little, but Lada could win the market from Dacia and Renault, the alliance is quite happy that AvtoVAZ plays exclusively on its territory and a little on the traditional markets of the former CIS,” said Burgazliev.
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According to him, now Lada cars are competitive exclusively in the EAEU market, where they are protected by the disposal charge from such serious players as Chinese automakers and the German Volkswagen concern.
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Despite the fact that few Lada cars were sold in Europe, the Niva SUV was a cult model for many Europeans, said car expert Sergei Ifanov.
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Stopping the supply of such a complex Russian product to Europe is a blow not so much to the reputation of an individual car company as to the image of the whole country, he believes.
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“For example, the Niva was delivered to Europe since the Soviet era, it was used there by police, huntsmen, and farmers. The brother of the famous Schumacher Ralph, a former Formula 1 racing driver, carries wine from his winery to Niva, and publishes its photos with pleasure on social networks. This is a really rare utilitarian car – proof that your country can make a unique product and sell it in a civilized country. The Ministry of Industry and Trade has something to ponder, ”summed Ifanov.
