AVTOVAZ’s pricing of the new Lada Iskra model, positioned between the Granta and Vesta, has been met with criticism, with concerns that it might undermine the project’s success. While the base price appears to align with initial promises, a closer examination reveals that the actual cost of more practical configurations puts it in close competition with the existing Lada Vesta and even some Chinese models.

The Iskra, built on a platform inherited from the third-generation Renault Logan and featuring Russian-made engines, has garnered positive attention for its design and potential as a budget-friendly option, especially the station wagon version with increased ground clearance. However, the announced price list has raised eyebrows.

The starting price of 1.249 million rubles is for a version with an eight-valve engine, which is expected to be scarce. The more realistic option with a 16-valve engine and manual transmission starts at 1.5 million rubles, almost the same as the base Vesta, which costs 1.525 million rubles. Although the Iskra in this configuration boasts better equipment such as cruise control, seat heating, a multimedia system, alloy wheels, and heated nozzles, the essential features like airbags, ABS, ESP, and air conditioning are comparable between the two models.

While a version with a 16-valve engine and CVT in the Life configuration shows a more significant price difference of 207,000 rubles compared to the Vesta, availability of these more affordable configurations, particularly in the initial months, is questionable. With limited production and availability only in select cities, dealers are likely to focus on higher-equipped versions or add extra costs.

The more equipped versions of the Iskra, such as the Enjoy and Techno configurations, are priced between 1.5 and 1.67 million rubles, placing them directly in competition with the Lada Vesta and some Chinese cars. While these versions offer enhanced features, the focus on expensive options overlooks the core concept of a budget car, which should prioritize affordability.

The station wagon versions of the Iskra are even more expensive, with the regular SW starting at 1.649 million rubles and the SW Cross reaching up to 1.8 million rubles, nearing the price range of models like the Haval Jolion. This pricing strategy could potentially hurt the Iskra’s market position, especially without a corresponding increase in the utilization fee that would make Chinese models more expensive.

The current situation, influenced by broader economic challenges, sees AVTOVAZ passing on its difficulties to consumers through increased prices. The question arises whether a Russian manufacturer can ensure competitiveness without artificially inflating prices for alternatives, and what intrinsic value justifies saving AVTOVAZ at the expense of the nation.

While the Iskra has the potential to be a good car, its pricing puts it in direct competition with the Vesta and larger Chinese models, diminishing its appeal. To succeed, it needs to be perceived as a truly affordable car that offers optimal value for money, but the current pricing strategy risks killing the Iskra’s prospects by failing to create the right first impression.