Lada's Move Towards Iran?

While Western automakers have exited Iran, the Russian automaker AvtoVAZ, manufacturer of Lada, intends to enter the Iranian market. According to automotive media in Iran, Lada products are set to replace Renault products in the country. AvtoVAZ, which produces Lada vehicles, is currently a subsidiary of Renault, and many of its cars share a common platform with products from Dacia, another Renault subsidiary whose Romanian products are manufactured under the Renault brand in Iran. Products like Tondar 90 and Sandero have a nearly similar platform to several Lada products made by AvtoVAZ. Currently, Renault's production lines in Iran Khodro and Saipa are experiencing stoppages or slow production, which may reactivate with the entry of Lada products. Before the U.S. withdrawal from the JCPOA, Bahman Company was supposed to collaborate with Lada, and Iran Khodro and Saipa planned to produce new Renault products in Iran. Renault suspended its operations in Iran following the U.S. exit from the JCPOA. After the JCPOA, Renault, considering its previous investment experience in Iran and numerous issues with Iran Khodro and Saipa, announced its intention to independently engage in production in Iran, and ultimately, the company succeeded in establishing an independent presence. Renault's stake in AvtoVAZ is significantly less than its stake in Dacia Romania, but could this be a reason for AvtoVAZ to enter the Iranian market? Or is this Renault's method to circumvent sanctions? The answers to these questions remain unclear. However, Lada Vesta and Lada Xray have exactly the same platform as products from Renault that the company planned to produce in Iran. Lada Granta also has a platform similar to products like Tondar 90 and Sandero, which were produced in Iran Khodro and Pars Khodro with 60% local manufacturing. The AvtoVAZ factory in a 2012 image. In the mid-1960s, leaders of the former Soviet Union decided to develop their automotive industry with a 'socialist' perspective and with the help of Fiat Italy. During this period, the Lada 1200, based on the Fiat 124, entered the market. This car was considered an economical vehicle 'for the masses.' Before the Lada brand's entry, cars were not widespread in the Soviet Union. This brand enabled more people in the Soviet Union to own cars. The Fiat 124 was a simple and relatively inexpensive car, which is why it was chosen for production in the Soviet Union. Lada Niva, a popular SUV in the Soviet Union, and Lada Riva were other products of AvtoVAZ that, however, had little to say against Western competitors. After the collapse of the Soviet Union, AvtoVAZ struggled for several years to revive itself but remained unable against Western competitors. The management stake in this company was eventually purchased by Renault, making it a subsidiary of Renault. Through this, Renault gained a significant portion of the Russian market, and Lada was transformed with Renault's technical expertise. Renault had previously created a similar transformation in an Eastern European automaker by acquiring Dacia Romania. Both companies, Dacia Romania and AvtoVAZ, share similarities in terms of facilities and the type of market they operate in. Therefore, the product platforms of these two companies are the same. Renault uses cost-reduced vehicles from the Renault-Nissan alliance in the products of these two factories.