AvtoVAZ wants to work with India, but two problems could ruin everything

Sanctions and the republic's strong ties with the West may interfere

Maxim Kadakov, editor-in-chief of "Za Rulem", spoke about the scenario according to which AvtoVAZ's cooperation with companies from India could proceed. The company's vice president, Sergei Gromak, announced this possibility.

Lada interior
Lada interior

According to Kadakov, India could indeed become a powerful source of technology and components, and local engineers know how to quickly develop solutions - from piston rings to cylinder heads. However, there are two key problems with this scheme.

The Indians themselves have developed very little. All achievements, one way or another, have grown out of cooperation with companies from developed countries in Europe and Asia. Therefore, the main manufacturers are bound either by partnership obligations, or [it is] their joint ventures.
Maxim Kadakov, editor-in-chief of "Za Rulem"

The second problem is sanctions restrictions. Manufacturers with ties to Western businesses risk falling under secondary sanctions, so direct contracts with AvtoVAZ are closed to them.

According to Kadakov, the only real scenario is cooperation with those Indian companies that are not dependent on Western partners and are willing to work through chains of intermediaries. And here, a lot will depend on the level of political agreements.

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