Avtovaz resumes local production of Lada cars in Kazakhstan. A corresponding cooperation agreement was signed between the Russian car manufacturer and GC Allure, the report of the company reads.
"In the shortest possible time, we were able to prepare and sign the cooperation agreement, as well as start production of the first model - Niva Travel SUV. Other Lada models production will also begin at the Kostanai plant in the coming months," said Avtovaz president Yves Karakatzanis.
Under the new agreement, Lada cars will be produced at the SaryarkaAvtoProm plant in Kostanai "in amounts that will be needed for the local market".
As Kommersant newspaper reported, Lada production in Kazakhstan was suspended in November last year. Previously, models of the domestic brand were produced at the Asia Auto plant, but the local authorities terminated the agreement on industrial assembly with the enterprise and imposed a penalty of 173.9 billion tenge (30.8 billion rubles).
About the plans
The car manufacturer is also discussing the deepening of production localization on the Kazakh site. We are talking about organizing the production of cars based on CKD kits, including welding and painting.
"Kazakhstan is a key export market for Avtovaz, and we intend together with the new partner to further strengthen the presence of our brand here," Karakatzanis added. Thus, in 2020, 17,500 Lada cars were delivered to the country, including car kits.
Avtovaz is the largest manufacturer of passenger cars in Russia, is part of the Renault-Nissan-Mitsubishi alliance. The company's sales in Russia in 2020 decreased by 5%, to 343.5 thousand cars.
GSV "Russia - Islamic World"
Photo: lada.ru
Based on materials from TASS