AVTOVAZ’s Lada Iskra, poised to fill the gap between the Granta and Vesta models, faces scrutiny over its pricing, which some fear could undermine the entire project. Despite a starting price of 1.2 million rubles, concerns are rising about the affordability and competitiveness of the new model.

The base model, equipped with an eight-valve engine, is expected to be scarce, pushing buyers towards more expensive configurations. The Iskra with a 16-valve engine and manual transmission starts at 1.5 million rubles, nearly matching the base price of the Vesta. While the Iskra boasts better equipment in this configuration, the essential features remain comparable to the Vesta.

The limited initial production of approximately 500 units per month and availability in only three cities (Moscow, St. Petersburg, and Togliatti) suggest dealers will likely focus on higher-equipped versions or add extra costs. More equipped versions of the Iskra, such as the Enjoy and Techno sedans, range from 1.5 to 1.67 million rubles, competing directly with the Lada Vesta and some Chinese models.

The pricing strategy undermines the concept of a budget car, which should offer super-cheap versions for those prioritizing affordability over additional features. Instead, AVTOVAZ seems to be emphasizing expensive versions with optional extras, potentially alienating budget-conscious buyers. The Iskra station wagons, particularly the SW Cross version, are priced up to 1.8 million rubles, entering the territory of competitors like the Haval Jolion.

The high prices could hinder the Iskra’s success by positioning it in a competitive segment alongside the Vesta and larger Chinese cars. This might lead consumers to perceive the Iskra as an overpriced option lacking a clear value proposition. Such a misstep could damage the car’s initial impression and necessitate costly advertising campaigns to reshape its image.