It’s been over two decades since the collapse of communism in the former USSR and the introduction of capitalism to what is now Russia. However, a relic from the past, a car that was introduced back in 1982 (actually even older if you count the vehicle upon which it was based on), is still quite popular with the locals.
The car we ‘re talking about is the Lada 2107 which along with the 2104 and the 2105 versions are Russia’s second best-selling cars, only behind Lada’s much newer Kalina hatchback.
The 2107’s popularity, despite its stone-age specifications, is easily explained: it costs less than half the price of a Ford Focus or VW Polo, plus the lack of modern technology turns to its advantage since owners can, on several occasions, perform repairs on their own.
Lada has the largest market share in Russia, with 24%, but GM, VW and Ford all vie to increase their own in a market that could very well become Europe’s largest.
Russia’s own Ministry of Industry forecasts car sales to climb 73 percent, to more than 3.3 million, until 2015, surpassing even Germany. But Lada, which came very close to shutting down its Togliati factory in 1991, isn’t resting on its laurels.
Parent company AvtoVAZ, which since 2008 has sold a 25% stake to Renault, plans to use the French company’s Dacia Logan platform to develop new models and double its annual sales, from 564,000 in 2010, to more than 1 million by 2020.
Source: Bloomberg
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