Russian auto giant Avtovaz announced that it will introduce a low cost variant of its model Lada next year in the Russian market. The car will be sold at $7100 or around Rs. 3.33 lakh. The model will be launched in association with its French partner Renault as both the companies are working on their assembly lines to bring the model for Russian customers by end of 2011. "We call it low-cost to accentuate that it has a lower price than its popular predecessor, Lada Kalina," said Avtovaz spokeswoman. The new cheap car will be christened as Lada Granta and will be built on a new production line which Renault intends to buy if the model proves to be successful.
Renault currently holds 25 percent stake in Avatovaz which faced difficult times during recession and was then recuperating with government aid. Renault already has its model Logan which is being manufactured by its subsidiary Dacia and was aimed at emerging markets but now sells well in Western Europe.
AvtoVAZ has also confirmed that it has built the 26 millionth Lada Kalina. The model was presented to the winner of the competition to name the Lada Granta. Ten vehicle names were selected by AvtoVAZ from the competition entries. The remaining nine names will be reserved for future AvtoVAZ model names.
