Sollers aims to sell 10,000 LCVs in 2023, switch to CKD assembly of Atlant, Argo models

YELABUGA. Aug 25 (Interfax) - Sollers Group aims to sell at least 10,000 Atlant and Argo light commercial vehicles (LCV) this year and is switching from disassembled-knocked down (DKD) to complete-knocked down (CKD) assembly of both models, the sales and marketing director of the Sollers Alabuga LCV plant, Marat Sharipov told reporters.

The trucks have been produced at the company's plant in the Alabuga special economic zone (SEZ) since last November based on the technology of Chinese automaker JAC. The company has set up CKD production of chassis and Sollers Atlant panel vans and buses with body welding and painting in Yelabuga.

Essentially nine months after launching DKD production of the Atlant the plant "moved to the next production phase, CKD, with welding and painting," Sharipov said. "Basically, with all those things that make a product local and already make it possible to manage it, influencing both the production technology and the use of local materials," he said.

Production of the Sollers Argo "last mile" compact trucks, which has been moved to the multi-brand center in Ulyanovsk, will also officially switch to CKD production in the next few days, Sharipov said.

"With the Argo it was more complicated, because this is an absolutely new site, new production facility. We did not bind ourselves to [the Ulyanovsk Automobile Plant (UAZ)], but UAZ gave us an area on which an absolutely new production facility was erected. The final touches are now being made - installation of the assembly, welding lines. An event related to the launch of CKD production is planned for the beginning of next month," Sharipov said.

He said Sollers has already produced 7,000 Atlant and Argo vehicles since relaunching LCV production at the end of November 2022.

"We are reviewing plans every month in the current situation, because life is changing faster than we can plan, frankly speaking. But we plan to sell, I think, at least 10,000 automobiles [in 2023]," Sharipov said.

Sollers Alabuga technology development and industrialization director Viktor Zornikov said the plant is not producing "for the warehouse," it is producing depending on demand. Given current realities, the plant in Yelabuga is still operating well under capacity.

"The plant's limit is painting, which is crucial. The capacity for painting is 85,000 vehicles per year with one shift. If necessary, we will do some slight modernization and will be able to do more," Zornikov said.

He said the company does not plan to increase localization at the plant at any price. "Before we fought for points in order to get back the scrapping fee. This also plays a certain role. But the new shareholder's approach is slightly different. We are starting to work in terms of securing ourselves from the volatility of our currency. And we will look at each individual case in terms of logistical and financial viability," Zornikov said.