The automotive market of the Russian Federation is perceived by the leading world automakers as a developing. Such markets of third world countries are characterized by a number of specific features. And if these features discern and solve the «mysterious soul» of local motorists, then all trends and development paths will be clear.

Our channel solved the features of the Russian market from the point of view of its main players. For what we compare two automakers — the Czech company ŠKODA AUTO and the Russian AvtoVAZ producing the Lada brand. Since the comparison, as ancient said, this is a way of knowledge, then all the answers turned out to be lying on the surface.

Change owner

And the first sensation did not make himself wait. Today, the Czech automaker and domestic AvtoVAZ found themselves in different weight categories. In the past 2019, ŠKODA has delivered 1.24 million cars to customers around the world. In turn, AvtoVAZ was able to release 375 thousand cars, and another 128 thousand released the Izhevsk playground «Lada Izhevsk». That is, between two producers more than double gap.

However, what unites two automakers? Initially both were state-owned enterprises. The modern production automotive complex ŠKODA in Mlada Boleslav began to build in 1952 in the time of the Czechoslovak Socialist Republic, and the AvtoVAZ Corps in Togliatti in 1967. Cars that were produced on the two flags of the socialist industry were quite relevant to their time. True, then then they celebrated their technical lag. So in one British car edition of the Gul published by the transmission of the car ŠKODA Favorut, compared with the singing of the choir of Wales miners.

Then, after the events of the end of the 80s of the 90s, the owners change occurred. In 1990, after the so-called «velvet revolution» in the Czech Republic, the Government of Premiere Vaclav Claus made a 30% stake in the enterprise in Mlada Boleslav.

The main candidates were two — German Volkswagen and French Renault.

The Germans and the brand ŠKODA won the victory on April 16, 1991 in a friendly family of VAG, where Volkswagen and Audi and Spanish Seat were already located. The amount of the transaction amounted to 620 million German brands.

Then after a few years, VAG bought a full package of shares and became the most frequent owner of the Czech enterprise.

Renault also got Eastern European assets. First, the French automaker became the owner

When Czech ŠKODA moved under the control of the German automaker, for several years they continued to produce an outdated Favorit model (such a Czech «Nine»), and then it was replaced by a deeply upgraded Felicia model. But the truly first model of the new generation was ŠKODA Octavia. On the Autumn Motor Show Mondial De L’Automobile in Paris in 1996, ŠKODA AUTO introduced the first generation of Octavia fully developed by the Czech automaker already as part of the Volkswagen Group concern and on its platform (PQ34). On it was built by Volkswagen Golf-IV.

By 2010, almost 1.5 million units of the first generation of ŠKODA Octavia were produced.

The model was so successful that it was produced in conjunction with the second generation model.

We will not describe all generations of ŠKODA Octavia car, we note only such a significant fact. In 2005, the OCTAVIA-II release started in India at the factory in the city of Aurangabad, and since 2007 the model began to be made in Shanghai for the Chinese market at Shanghai Volkswagen (now — SAIC Volkswagen Automotive Co. Ltd.). In 2009, the second generation OCTAVIA release was established at the Volkswagen Group plant in Russia, in the city of Kaluga. (Later, the release of Octavia was moved to the gas platform in Nizhny Novgorod). That is, the Czech model has become global and its release is mastered not only in the Czech Republic at the head plant.

And here is the first attenuation. The Czech brand of her new owner considered as global, and cars produced by the Czech manufacturer as global. That well demonstrates us an example ŠKODA Octavia.

It is logical because the inner car market of the Czech Republic is too small, its capacity is 200-250 thousand cars per year. In 2019, only 249,915 new cars were registered in the Czech Republic, the share of Škoda on it was 34%, or 85,895 «Skodovok». Because of such a number of machines sold, of course, it was not worth upbringing the whole cheese boron with the purchase of Czech brand and investments with hundreds of millions of euros. Therefore, the principal approach was formulated — the ŠKODA Czech brand is a global player.

Czech full cycle

Based on this, the main promise of Volkswagen and built the entire policy towards the Czech division. It should be noted that ŠKODA AUTO is actually three production sites in the Czech Republic.

Since the car joined the era of crossovers, the global ŠKODA immediately responded to this trend. ŠKODA Yeti became the first silent Czech car class SUV. But since the model range of crossovers rose, and they turned out to be high demand,

Another important question that resolved the owner how to embed a Czech automaker into technological chains of the VAG group. And there was an interesting solution here.

First, in the division of labor between various divisions of VW Czech Škoda, the following got.

In addition, at the production site of the plant in the Czech town of Vrchlabi since 2012 produce an automatic transmission of DQ200. This seven-step automatic box with two DQ200 series clutches is installed on many ŠKODA models, as well as on cars of other brands of the Volkswagen Group concern. At the same time, the share of the Czech brand accounts for 38% of transmissions issued in vrolubs, and the remaining 62% — on the concern cars. More than half of the transmissions company poisoned to Germany; In addition, they are used at factories in India, Poland, Russia, Spain, South Africa and Hungary.

In other words, the two examples above are enough to understand that

AvtoVAZ, and what’s wrong?

Note that the role of a global daughter brand for Renault is not played by the Russian brand LADA, but Romanian Dacia. This is what the principal difference between the approach, therefore the strategy of the French group in relation to the Russian automaker is fundamentally different.

Although AvtoVAZ, although he passed under the control of the French company,

The main sales market of AvtoVAZ cars is located in the CIS countries, and above all, in the Russian Federation, as well as in the markets of the neighboring countries of the former USSR. In addition, in the Russian market and the Customs Union, it is not such a reverent attitude to environmental standards.

From here, a strategy for AvtoVAZ is built by the new owner. And as we see further, it is very different from a similar strategy towards ŠKODA AUTO.

Remember what events were the first to spend the French owner on AvtoVAZ? At first, he drastically reconstructed the first thread of the main conveyor, increased its capacity to 350 thousand cars a year and moved to it from Moscow, the release of its Renault Logan / Sandero and Nissan Almera models. Later, the domestic models of Lada Largus and Lada Xray appeared on it, but on the entire French platform B0.

Further, to ensure these car alliance engines and fulfillment of localization requirements for the promsbork-2 agreement, a line was created for the production of engines, where the production of French Motors K7M first began, and then Nissanovsky on the origin of the HR16 motor (H4M) for cars, The AvtoVAZ conveyor collected on the first thread and the Renault and Nissan plants located in Russia. Manufacture of the gearbox is not localized, the new stepless automatic transmission comes from Mexico, we are talking about Jatco JF015E, others from France and Japan. Although over time they can localize.

As for such a question, as AvtoVAZ is embedded in the global technological chains Renault Group, it is not yet clear any weighty achievements. Last year, 15 thousand kits of body details were supplied for Renault Logan on Algerian Plant in Algeria. There was also information that some number of engines will be delivered to the Renault Oyak Turkish plant.

Today, as is known, work is underway to transfer AvtoVAZ models to the French platform. The first models of Lada Largus and Lada Xray are already built, in line Lada 4×4 and Lada Granta. On the domestic platform, for some time, only a relatively new Lada Vesta remains. That is, the entire technical policy of the new owner is reduced only to unification on the French technical base. There will be no domestic technical developments, like the EA211 motor, which designed the Czechs for all VAG. It remains only to guess how long our domestic motors and boxes will remain in the ranks.

Here is a comparison, this is such a functionality and such consequences of the absorption of one automaker to others. Only the consequences will be slightly different.