I know, it's pretty amazing! Kinda like how the old VW bug was being produced until 2000 in Mexico. Even afterwards many small mechanic shops kept putting "new" ones together, using old parts. (I think some still do, since there are still soooo many of them around.)
As for the Zhiguli, they enjoyed a high regard in Hungary, at least compared to the Dacia, until the socialist system collapsed. Then everyone was looking at western cars instead, but now there is a new revival of old socialist models. Driving a Zhiguli today would most certainly make you super cool, especially if it has a nice paint job and a decent sound system.
That is crazy that they are in high regard in Hungary right now, it must be some sort of nostalgia after youth during the Soviet bloc times...