The Nizhny Novgorod company "Proizvodstvo Legkovykh Avtomobiley" (PLA) has signed a special investment contract with the Ministry of Industry and Trade, under which it will invest about 60 billion rubles in localizing its models in Russia, Vedomosti reports, citing sources. According to one of the interlocutors, the actual amount could be significantly higher.
As part of the project, Volga plans to create an original model range, develop its own engineering solutions, and a local component base. The SPIC includes high localization obligations for critically important components, including the engine, transmission, and car control units. A company representative noted that the planned investment volume significantly exceeds the amount specified in the contract.
PLA's model range consists of licensed copies of three Chinese Geely cars – the Preface sedan and the Atlas and Monjaro crossovers. Under the Russian brand Volga, they received the names C50, K40, and K50. Production began in the spring of 2026 in Nizhny Novgorod, with sales scheduled to start in June.
The cars will be equipped with 1.5-liter turbocharged engines with 147 horsepower, as well as a two-liter unit with three output options – 150, 200, and 238 horsepower. The gearbox will be robotic or a classic automatic.
Prices have already been revealed: C50 sedan – from 2.9 million rubles, K40 crossover – from 2.75 million, K50 – from 4.2 million. For comparison, original Geely Preface models cost from 3.3–3.4 million rubles at dealerships, Atlas – from 3.4 million, Monjaro – from 4.6 million. According to a source, as Volga enters the dealership network, sales of the corresponding Geely models will cease.
PLA assembles cars at a site where GAZ Group previously produced Volkswagen and Skoda. The enterprise can produce up to 110,000 cars per year. Until recently, this plant remained one of the last not occupied by new investors after global car brands left Russia.
Experts note that the choice of Geely as a donor for localization was more successful than the previous experiment with Changan, which was abandoned due to criticism from the prime minister. Buyers, according to analysts, pay less attention to the brand today. Russian assembly is not a disadvantage, but rather indicates the seriousness of the manufacturer's intentions. Localization allows claiming compensation for the recycling fee and participation in state programs, and for the buyer, it means greater availability of spare parts. If the company managed to choose popular models, they will sell no worse than the originals.
Read more on the topic:
- The new Volga turned out to be more expensive than expected: prices for the brand's first models announced
- "Volga" will win over buyers from Geely, but the Chinese will not leave the market, says the head of ROAD
- The first Volga K50 was bought by the Governor of the Nizhny Novgorod Region even before the start of sales