Lada Granta: Europe's Cheapest Car?

Just the Facts:

• AvtoVAZ plans to replace Kalina with a new compact series in 2011.
• Europe's cheapest car, the Lada Granta, will arrive in mid-to-late 2011.
• Prices could start as low as $6,200.

MOSCOW — AvtoVAZ, Russia's largest automaker, is planning to start the production of Europe's cheapest car, the Lada Granta, in mid-to-late 2011. Prices could start as low as $6,200, which would make the Granta the lowest-priced car built in Europe.

The Granta range, known internally as VAZ 2190, will include a sedan, followed by a hatchback, and is expected to replace the Lada Kalina and Samara. Eventually, a wagon may also join the range.

AvtoVAZ President Igor Komarov said the new Lada Granta will be built on the Kalina platform, "but it will be more safe, modern and comfortable than Kalina."

French automaker Renault, which is partnered in Russia with AvtoVAZ, has expressed interest in developing its own version of the Granta, to slot below its Logan/Sandero range. Renault also is negotiating the rights to sell the Granta in overseas markets.

When the Granta goes into production at the AvtoVAZ home plant in Togliatti, production of the older Lada models will be shifted to Izhevsk.

The new Lada is mainly designed for the Russian market, but the management of AvtoVAZ has not ruled out the possibility of starting exports of the car to Western Europe.

By 2020, AvtoVAZ plans to produce nine models based on three or four basic platforms in six market segments, with its three flagship models (low-cost series, new Priora and C-class) accounting for 70 percent of total production. By that time the company intends to increase sales to 1.2 million cars per year. This year, the company expects to produce 571,000 cars.

Inside Line says: AvtoVAZ hopes the Granta will provide a solid foundation for future growth. — Evgeniy Vorotnikov, Correspondent