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Residents of the Russian Federation are promised a new people’s car cheaper than “Grants”

June 21, 2023

Newspaper “News” assessed the prospects for creating a new people’s car in Russia, which will be cheaper than the famous Lada Granta.

The State Duma believes that in order to create such a vehicle, it is necessary to simplify the Technical Regulations for safety, as well as study the design of foreign cheap models and evaluate the prospects for similar production in Russia. In this direction, according to Anton Shaparin, vice-president of the National Automobile Union of the US, the Malaysian Proton Saga can serve as an excellent guide, the price of which is from 625 thousand rubles, while the car has two airbags and air conditioning, as well as ABS, ESC and even a camera rear view.

“Granta, the most affordable now, is already being sold with a minimum level of profitability. You can reduce the price of it only if you lower the salary of assemblers or require suppliers to reduce the cost of components. But this will entail social tensions, losses of the same suppliers,” says Maxim Kadakov, editor-in-chief of Za Rulem magazine.

He also added that the organization in Russia of an affordable model, for example, from China or any other country, is theoretically possible, but keeping its cost within 500 thousand rubles is possible only with huge circulations of 300-500 thousand cars a year.

At the same time, if such production does succeed, it will require huge investments. The head of the Ministry of Industry and Trade of Russia, Denis Manturov, said that the “people’s” car, which is the Lada Granta, cannot cost less than 500 thousand rubles.

This is due to the fact that a cheap analogue will not be able to meet modern safety and comfort requirements. He also added that the price tag from 750 to 800 thousand rubles is fully consistent with the title of “people’s” car. In addition, “Grant” can be purchased at a discount if the buyer takes advantage of the state support program.

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Russia Desk

Russia Desk

The Russia Desk leads The Eastern Herald's coverage of Russia, the war in Ukraine, NATO's eastern flank, and the post-Soviet space. The desk has reported continuously on the Russia-Ukraine conflict since its full-scale expansion in February 2022 and verifies through Kremlin statements, NATO briefings.

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