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Lada Aims to Enter Iranian Car Market

Russian car manufacturer Lada

The Russian car manufacturer Lada is planning to enter Iranian car market after almost 35 years. The Russian company used to export its products to Iran under the Shah’s reign.

Lada is currently manufacturing different models of cars including Niva, Samara 2, Priora, Kalina 2, Granta and Largus. According to local media reports, Lada is expected to export its flagship product Niva to Iranian car market.

At the same time, economists have warned the Iranian government of importing low-quality cars from Russia. Lada cars became popular in Russia and Eastern Europe during the last two decades of the Soviet era.

Hossein Abtahi, an Iranian scholar, says the government should not allow Lada to export its cars to Iran. “In early ages, Lada used to manufacture quality cars. However over the past few years, the company has failed to export its cars to the European markets.”

“Although the Russian car maker has managed to obtain some certifications and endorsements from Europe-based institutions, it is still manufacturing low-quality cars.” Hossein Abtahi said in an interview with the Herald Boy on Sunday. Lada is a trademark of Russian car manufacturer AvtoVAZ based in Tolyatti, Samara Oblast.

“In my opinion, even the Chinese car makers are manufacturing better cars than Lada. From the other point of view, Iranian car manufacturers can beat the competition if they receive enough supports from the local government.” Abtahi added.

At this time, Iranian car makers are badly suffering from the economic sanctions imposed by the Western governments on Iran’s economy over the country’s nuclear plan. Accordingly Iran-based car manufacturers are unable to import their needed raw materials and spare parts from the European states.

During the recent months, Iran Khodro and Saipa, the two leading car makers of Iran, have failed to manufacture enough cars for the domestic market. Subsequently, Iran’s car exports have reduced by over 98%.

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