The transfer of LADA Vesta production to Togliatti will cost AvtoVAZ 1 billion rubles

Investments in the transfer of LADA Vesta production from LADA Izhevsk enterprise to the main AVTOVAZ site in Tolyatti will be about 1 billion rubles. This was stated by AVTOVAZ President Maxim Sokolov, by noting that the project to produce a model on the B0 line will quickly pay off and become profitable at the end of next year. Recall that the restart of LADA Vesta production at AVTOVAZ facilities is scheduled for the beginning of spring 2023 - the flagship model will be produced on the B0 line with a capacity of up to 60 vehicles per hour.

As noted, based on the tasks set for the company by shareholders, as well as the forecast for the development of the structure of the Russian automotive market in 2023, the productivity of LADA Izhevsk (up to 32 vehicles per hour) will not be sufficient to meet demand. At the same time, LADA Izhevsk plant will continue to develop: the production of a fundamentally new electric version of the LADA e-Largus will be organized there. The enterprise will also continue to develop the production of components for LADA Vesta (stamping production, plastic production, etc.), service and support functions will remain.

At the same time, AVTOVAZ does not plan to carry out mass layoffs of the personnel of LADA Izhevsk. In addition, it is planned to create LADA Izhevsk Industrial Park, also with the involvement of resident manufacturers of non-automotive products to create new jobs. Recall that LADA Izhevsk plant has been a part of the AVTOVAZ Group since 2011. The capacities of the Izhevsk enterprise are designed to produce 220,000 cars per a year.

Since September 2015, LADA Izhevsk plant has been producing LADA Vesta sedan, LADA Vesta SW station wagon and their cross-versions LADA Vesta Cross and LADA Vesta SW Cross. In February 2022, the company launched the production of the updated LADA Vesta. About 600 new parts and components were used in the restyled model, investments in the project were about 7 billion rubles.