AVTOVAZ has officially launched the mass production of its new model, the Lada Iskra, at its Tolyatti plant, marking a significant milestone for the Russian automotive manufacturer. The company plans to kick off sales of the Iskra on July 20, 2025, which coincides with the anniversary of AVTOVAZ's founding. This new sedan is positioned between the popular Lada Granta and the flagship Lada Vesta in the company’s lineup, reflecting a strategic move to cater to a broader customer base.
According to RBC, the maximum production capacity for the Lada Iskra is set at 150,000 units per year, although actual output will depend on market conditions. AVTOVAZ estimates that the starting price for the Iskra will be at least 1.2 million rubles. Maxim Sokolov, the head of AVTOVAZ, explained that the pricing strategy aligns with the model's positioning within the existing range, bridging the gap between the Granta and Vesta.
The Lada Iskra was first introduced at the St. Petersburg International Economic Forum in June 2024, where it was announced that the model would fill a niche between the Granta and the Vesta. The project has seen a substantial investment of 23 billion rubles, highlighting AVTOVAZ's commitment to revitalizing its product offerings in a challenging economic environment.
Production of the Iskra has been a complex process, especially in light of sanctions and the departure of the Renault-Nissan alliance from Russia. As a result, the project was delayed by three years, with the original launch date set for 2022. To adapt to these challenges, AVTOVAZ and its partners have developed 1,000 new components for the Iskra, with over 400 parts requiring reworking due to the break with Renault. Currently, the localization level of the vehicle is at 90%, with the remaining 10% of parts sourced from countries like China, India, and Uzbekistan.
On April 19, 2025, the first Lada Iskra sedans and station wagons rolled off the assembly line, with a total of 12 vehicles produced initially. Among these were a red sedan and a blue station wagon, which were accompanied by a white VAZ-2101—together symbolizing the colors of the Russian flag. This production marks a new chapter for AVTOVAZ, as it represents the first fully new model launched after the exit of Renault-Nissan.
The Iskra will be available in three configurations: a sedan, a station wagon, and a Cross version of the station wagon. The sedan measures 4333 mm in length, while the station wagon is slightly longer at 4342 mm. The Iskra's design has drawn mixed reactions; some praise its recognizable shape, while others critique its aesthetics. However, AVTOVAZ emphasizes that the Iskra is a logical continuation of its X-design philosophy, which began with models like the Xray and Vesta.
Under the hood, the Lada Iskra will feature two engine options: a 1.6-liter engine producing 90 horsepower paired with a five-speed manual transmission, and a more powerful 1.6-liter engine generating 106 horsepower, available with either a six-speed manual or a continuously variable transmission (CVT). The Cross version of the station wagon will only offer the more powerful engine option.
As the production ramp-up continues, AVTOVAZ aims to produce several tens of thousands of Iskra vehicles by the end of 2025. The gradual acceleration of the production line is a strategic decision to ensure quality control and meet market demand efficiently. The company is optimistic that the Iskra will attract customers looking to upgrade from the Granta to this new family of vehicles.
In summary, the launch of the Lada Iskra is a significant step for AVTOVAZ as it seeks to navigate the challenges posed by international sanctions and market changes. With a substantial investment and a clear production strategy, the Iskra represents a hopeful future for the Russian automotive industry.
