Nearly every manufacturer out there is making a cheap car for the emerging markets. Renault has the Logan, Toyota has the Etios, Tata has the Nano and Ford has the Figo. The reasoning is pretty clear. In order to grow in these markets, you need to offer something that provides a painless upgrade path from a motorcycle to something with four wheels and a roof over your head. When makers like Renault, Ford and Toyota make an offering of this nature, you get the impression that there will be a certain level of quality in the car. Maybe not up to the level more mature markets are used to, but the standards will be high. That comes with a price. Now what if I told you that a certain car maker who is globally known for producing piles of cheap junk is making their own cheap car for emerging markets? What level of quality do you think that cheap car will have?
The Economic Times of India reports that Avtovaz (the makers of Lada) will launch a cheap version of a Lada car. Let that sink in for a second. A CHEAPER version of a Lada. Lada, a brand not exactly known for high quality vehicles. The car will sell for $7,150 and will be called the Lada Granta. It will be similar to the Renault Twingo, not that Renault will care. They’ve actually expressed an interest in buying the Granta, if it is a success, and sell it outside of Russia: Renault owns 25 percent of Avtovaz. Renault said the model is primarily destined for the Russian market but the firm “could consider negotiating” to sell it elsewhere.