Car production in Russia

Main article: Automotive market of Russia

2024: A factory for the production of brakes for cars for 10 billion rubles will be built in the Leningrad Region

The Kirishsky Foundry Company (KLZ) will build a plant for the production of automotive components in the Leningrad Region. This project worth 10 billion rubles became known at the end of February 2024. Read more here.

2023

Growth in the production of cars and trucks by 19% to 537.1 thousand cars

In 2023 Russia , 537.1 thousand passenger cars were produced, which is 19% more than a year earlier. The production of trucks increased by about the same amount - up to 167.6 thousand units. This is evidenced by the data Rosstat released on January 31, 2024.

According to Interfax, citing materials from the department, the production of buses with an permissible maximum weight of more than 5 tons in the Russian Federation at the end of 2023 amounted to 14.1 thousand units, an increase of 10.9% compared to the indicators of one year ago. The production of buses with a maximum mass of no more than 5 tons increased by 67.9%, to 23 thousand units. The production of internal combustion engines for vehicles in 2023 decreased by 10.8%, to 202.4 thousand units.

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AvtoVAZ in 2023 increased car production by 70% to 374,077 cars. At the same time, the volume of production of Lada cars on the Togliatti site has become a record over the past 10 years. The Ulyanovsk Automobile Plant in 2023 produced 39,453 cars - 15% more than a year earlier. The Russian Haval plant approached the mark of 100 thousand cars produced, which is more than 2.5 times higher than the result for 2022.

In addition, in June 2023, Avtosavod St. Petersburg(formerly) Nissan launched the production of the Lada X-cross 5 crossover, and by the end of the year about 170 such cars left the enterprise's assembly line. In September 2023, the Automobile Industrial Technologies plant Vladivostok in (the former Mazda-Sollers joint venture) began assembling Sollers ST6 pickups. Also in the first month of autumn, the Muscovite production of the Moskvich 6 liftback started at the enterprise. And Lipetsk Motorinvest in 2023 replenished the product line with Evolute and electric crossovers. i-SKY i-JET In December 2023, Automotive Technologies launched the assembly of medium-sized crossovers at the facilities of the PSMA Rus plant in. The production of Kaluga region^[1]

Production growth by 16% to 720 thousand cars

In 2023, 720 thousand cars were produced in Russia, which is 16% more than a year earlier. Deputy Prime Minister, head of the Ministry of Industry and Trade of the Russian Federation Denis Manturov cited such data during a meeting with Prime Minister Mikhail Mishustin and his deputies on January 15, 2024.

According to Manturov, sales of cars of all types in the Russian Federation in 2023 exceeded 1.3 million units, including 1.06 million cars (62%), 105 thousand commercial cars (+ 35%), 140.2 thousand trucks (+ 74%) and 17.8 thousand buses (+ 19%).

720 thousand cars produced in Russia

The Ministry of Industry and Trade traditionally considers the production of vehicles of all types together, including passenger, freight and public transport. Data on certain categories is provided by Rosstat. According to the statistics of the service, in January - November 2023, 481,600 cars were produced in Russia (an increase of 17.5% year-on-year), 151,000 trucks (+ 20%), 12,500 buses weighing more than 5 tons (+ 10%) and 20,900 buses weighing less than 5 tons (+ 82%).

At the end of December 2023, the Minister of Industry and Trade of the Russian Federation said that 700 thousand cars, commercial and trucks, as well as buses will be produced in the country per year.

This is precisely production, which, by the way, turned out to be higher than the original plans laid down in the strategy for the development of the automotive industry. More than 480 thousand cars have already been produced (with an annual plan of 470 thousand), - said the Deputy Prime Minister in an interview with RIA Novosti.

According to the executive director of Avtostat"" Sergei Udalov, the Russian auto industry in 2024 will continue to grow thanks to the import substitution of AvtoVAZ components and by launching assembly at the so far idle factories of foreign concerns. The growth of the market will be facilitated by the formed deferred demand, as well as the plans of automakers for the import and production of cars in Russia, predict in Avtostat^[2]

The Cabinet of Ministers allocated 39 billion rubles to the Russian auto industry

At the end of December 2023, Prime Minister Mikhail Mishustin announced the allocation of 39 billion rubles to support the automotive industry in Russia. These funds will be provided through the Industrial Development Fund (EDF).

As specified in the government's Telegram channel, most of the allocated money will go to the implementation of key projects of leading domestic automakers, including promising research and development work. According to Mikhail Mishustin, the plans facing the industry are large-scale, and it is extremely important that Russian cars meet modern world technical requirements, are not inferior to foreign models in terms of reliability. It is clarified that the decision on additional financing will help factories under the conditions of sanctions to develop the missing competencies and guarantee the stable functioning of conveyor lines.

The Cabinet of Ministers of the Russian Federation allocated about 39 billion rubles for the development of domestic automakers

The Cabinet of Ministers also plans to allocate another 7.5 billion rubles to the FRP to support industrial enterprises in order to achieve technological sovereignty. Special attention will be paid to transport engineering, chemical and light industry, as well as machine tools and electronics.^[3]

Earlier in December 2023, Chairman of the Federation Council Valentina Matvienko said that Russian automakers need to be supported by buying entirely domestic cars. She cited herself as an example, saying that she had long moved from the German Mercedes-Benz to the convenient and comfortable Aurus, which she really likes. Matvienko also added that Russian officials should change to domestic cars from foreign cars, but this must be done without "ostentatiousness" and "campaigning."

50% of car plants in Russia resumed work after stopping in 2022

By the end of December 2023, about 50% of automobile plants returned to work in the Russian Federation, whose activities were stopped after the start of the Russian military special operation in Ukraine in February 2023.

By that time, according to Kommersant, there were 21 large car factories in Russia, which produced models for both the mass and premium segments. Ten of these sites were controlled by carmakers from countries that were subsequently recognized by the Russian authorities as unfriendly. Six more plants, including AvtoVAZ and Avtotor, were assembling models from foreign manufacturers.

About 50% of Russian automobile plants returned to work

Almost all the sites where the assembly of cars was stopped were bought by local investors, but only a few managed to launch car production on them, the newspaper noted.

Automotive expert Vladimir Bespalov, in a conversation with the newspaper, drew attention to the fact that a year or less has passed since the sale of most sites, and car plants are not restarted "by clicking their fingers."

Even from the point of view of finding partners - say, "Moskvich" in this sense is a little simpler: here is the support of the authorities, understandable owners. And someone later started looking and therefore missed opportunities, - added the expert.

At the same time, as indicated in the publication, none of the Chinese automakers bought a plant in Russia, despite the fact that the volume of sales of Chinese cars in Russia reaches 60% of the market. According to experts interviewed by the publication, in the long term, Chinese concerns will still have to deepen the localization of their models in Russia. This will be facilitated by the restoration of car sales and measures by the authorities to tighten import conditions, in particular, electric vehicles. Against the background of increasing production, "options with assembly will probably gradually become a thing of the past," said Vladimir Bespalov.^[4]

2022

Decrease in bus production by 29% to 26.1 thousand buses

In 2022, about 26.1 thousand buses were produced in Russia, which is 29% less than in the previous year. The decline is due to a decrease in domestic demand for new passenger vehicles, as well as the effect of sanctions restrictions, BusinesStat analysts said in June 2023.

According to them, after the imposition of sanctions, large foreign companies announced the termination of supplies and production of equipment and spare parts in Russia (Volvo Cars, Renault, Mercedes-Benz, Nissan, Iveco and others). In March 2022, the production of buses at the Sollers Ford joint venture plant was suspended. Ford announced its withdrawal from the Russian market, the sale of its share in the joint venture. Due to interruptions in the supply of components, the ST Nizhegorodets plant, which produces buses and special vehicles based on vans and chassis of commercial vehicles, suspended its production.

According to researchers, the bus market in Russia does not depend as much on imports as the markets of other types of vehicles. In 2018-2021. in the structure of bus sales, imported equipment amounted to about 6%. In 2022, this share increased to 12%. The main volume of deliveries of passenger vehicles falls on China and Belarus. The main supplier of buses from Belarus to the Russian market is Minsk Automobile Plant OJSC. The company, as part of the transport reform in St. Petersburg to update the city fleet, supplies diesel buses and cars on gas engine fuel.

In 2022, bus imports from China to Russia increased almost 3 times - up to 2 thousand units. In the supply of Chinese-made passenger vehicles, brands prevail: Yutong, Higer, Zhongtong, King Long. Experts note that equipment from China has long supplanted cars from European countries from the market (new and used), and is leading in the class of intercity and tourist buses.^[5]

Reduction in truck production by 24.8% to 140.8 thousand.

In 2022, 140.8 thousand trucks were produced in Russia, which is 24.8% less than a year earlier. This is evidenced by data from BusinesStat analysts, which were released in June 2023.

As noted in the study, after the imposition of sanctions, large foreign manufacturers of trucks announced the cessation of production of equipment in Russia, the supply of cars and spare parts for them, including: Caterpillar, DAF, Iveco, Komatsu, MAN, Mercedes-Benz, Renault, Scania, Volvo Cars. The second problem of the industry in 2022 was the difficulties with the purchase of car kits and materials: they suspended cooperation with Russian enterprises Bosch, Daimler Truck and other companies. In addition, there were difficulties with logistics and mutual settlements with foreign partners, manufacturers were faced with the cancellation of tenders and orders, the report says.

According to experts, the supply on the truck market in 2022 was supported by an increase in import supplies, as well as the presence of significant warehouse stocks of equipment. In 2021, the output of trucks increased by 29.9% to 187.2 thousand units, which became the maximum value in five years. The revival of the market was associated with the weakening of coronavirus (COVID-19) restrictions, the renewal of the fleet of freight transport, the growth of infrastructure construction and cargo transportation.

According to BusinesStat researchers, in 2022, imports of equipment from China increased significantly: almost 5.4 times - from 7.7 thousand units in 2021 to 42.0 thousand units in 2022. This partially compensated for the reduction in domestic production, as well as supplies from countries that joined the sanctions restrictions. The problem with the shortage of components by domestic manufacturers was also solved by reorienting imports to the Asian direction, as well as the transition to domestic automotive components, analysts added.^[6]

Decline in the production of cars of all types by 60% to 620 thousand units

The volume of production of all car segments in Russia in 2022 decreased by 60% compared to 2021. In total, 620 thousand cars were produced in the country last year, Deputy Minister of Industry and Trade Albert Karimov said in February 2023.

The decline in the production of passenger cars by 67% to 450 thousand units

The production of passenger cars Russia in 2022 amounted to 450 thousand units, which is 67% less than a year earlier. This is evidenced by the data Rosstat released on February 1, 2023.

According to Kommersant, the production of passenger cars in the Russian Federation turned out to be the minimum in the entire history of observations. Previously, record low production was recorded in 2009 against the backdrop of the global financial crisis - then 597 thousand cars were produced.

The production of passenger cars in Russia for the year fell to a historic minimum

The newspaper notes that after the start of the military special operation of the Russian Federation in Ukraine in Russia, there is a crisis in the automotive market, which manifests itself in stopping the supply of foreign cars and downtime at enterprises of domestic manufacturers. However, by the end of 2022, the situation began to improve. In December, the production of passenger cars became the highest since March, showing an increase by November 1.7 times (by 70%), to 40.3 thousand units, follows from the data of Rosstat. In May, automotive production in Russia practically stood. The factories collected only 3.7 thousand cars. In August, the figure rose to 24.7 thousand units.

In 2022, the production of trucks also decreased: 141 thousand such cars were produced per year (-24.3%). And the production of buses decreased by 15.2%, to 12.5 thousand units. The production of internal combustion engines last year decreased by 33.1%, to 228 thousand units.

Automotive market analyst Vladimir Bespalov says that the dynamics of passenger car production in 2022 was determined by the possibility of enterprises in Russia to produce certain volumes.

There is an impact of new projects, but not yet very significant, "he told Interfax[7]

The production of road construction equipment increased by 35% in monetary terms, to 75.6 billion rubles

In 2022, the production of road construction equipment in Russia increased by 35% in monetary terms, to 75.6 billion rubles, the Rosspetsmash Association reported, which includes manufacturers of 80% of special equipment in the Russian Federation.

The production record was realized, despite Western sanctions and tough dumping of Chinese and Turkish competitors, the association noted.

Sollers launched mass production of new cars under its own brand in Tatarstan

At the end of November 2022, the Russian automobile company Sollers announced the launch of mass production of two new models of light commercial vehicles under its own brand in Tatarstan. We are talking about the Atlant and Argo models. Read more here.

The production of passenger cars is restored. September decline by 71.8% to 29.1 thousand units

Russian factories in September 2022 produced 29.1 thousand cars. The decrease in the indicator is directly related to the departure of foreign suppliers from Russia. Foreign companies are closing factories and selling assets to the state.

Reduction in car production for 8 months by 60% to 420 thousand units

Car production in Russia in January - August 2022, according to the Ministry of Industry and Trade, decreased by 60% compared to the same period last year and amounted to 420 thousand units.

Truck output fell 54% in the first half of the year. The share of foreign brands decreased to 22%

The production of trucks of foreign brands in Russia in the first half of 2022 fell by 54%. In annual comparison, this is 8.5 thousand pieces. The share of foreign brands in the total production of trucks in Russia in January-June 2022 decreased to 12.7% (in January-June 2021 - 22.7%).

Of the 20 car plants, only two work: Haval and AvtoVAZ

Of the 20 car plants that worked in the country at the beginning of the year, only two remained by the summer: the Chinese Haval and AvtoVAZ. The Russian car industry employs three million people - The Moscow Times.

96% decline in production in May

The production of passenger cars in the Russian Federation in May 2022 practically rose, having collapsed in annual terms 30.3 times (by 96.7%) and having more than halved in 5 months (by 56.4%), follows from the data of Rosstat.

85% decline in production in April

The production of passenger cars in Russia in April 2022 decreased by 85.4% compared to the same month in 2021. The drop compared to March was 51.3%.

The Government of the Russian Federation allocated 30 billion rubles for the production of components for cars

On May 26, 2022, it became known about the allocation by the Government of the Russian Federation of about 30 billion rubles for the production of components for cars. These funds are "abandoned... to dynamically reproduce the necessary components, "said Deputy Prime Minister Yuri Borisov.

The fact that the Ministry of Industry and Trade included this measure in the second package of the plan to support the Russian economy under sanctions was reported by Interfax at the end of March 2022, citing its sources. The Vedomosti newspaper, referring to its informants, wrote that the funds will be brought to manufacturers through grants from the Industrial Development Fund (FRP).

The Government of the Russian Federation allocated 30 billion rubles for the production of components for cars

This measure involves an increase in budget funding for the FRP so that it can issue more preferential loans to manufacturers of auto components to replace imported products. The mechanism works as follows: the FRP issues a preferential loan for the project in the amount of 50 million rubles at 1% per annum, and when the project is implemented within the period established by the company, the Ministry of Industry and Trade gives the company a subsidy to repay this loan.

Iouri Borisov at the end of May 2022 noted that the shortage of auto components due to a decrease in production was felt by all world manufacturers. Anti-Russian sanctions, he said, to varying degrees affected cargo and passenger vehicles, buses, commercial vehicles.

The lack of components forces Russian car plants to go into downtime. So, made "AvtoVAZ," which from May 30 to June 3, 2022 will not work. This was announced by the representative of the independent trade union of employees of the enterprise "Unity" Leonid Emshanov.

On May 24, 2022, the new general director of AvtoVAZ, Maxim Sokolov, at a meeting with the team of the Togliatti Automobile Plant, announced the likely resumption of car production in early June, and then the gradual restoration of its volumes.^[8]

Permit the production of cars without electronic systems and airbags and part of the ERA-GLONASS functions

In May 2022, Prime Minister Mikhail Mishustin signed a decree that allows automakers to abandon the use of some electronic systems in their cars. In particular, it will be possible not to install an anti-lock system (ABS), an electronic stabilization system (ESP) and some components of the ERA-GLONASS emergency warning system. Read more here.

Difficulties with release due to stopping the supply of components against the background of Russia's special operation in Ukraine

Decrease in sales of new cars in the 1st quarter by 14% to 580 billion rubles

Fall in car production in Russia by 72.1% in March

In March 2022, 40,900 passenger cars were produced in Russia, which is 72.1% less than in March 2021.

In the first three months of 2022, 244 thousand passenger cars were produced in Russia, which is a third less than in January-March 2021.

2021

1.35 million cars produced

Data for 2021

Derweis plant, which produces Chery, Geely, Lifan cars, sells for 1.5 billion rubles after bankruptcy

In April 2021, it became known about the auction from which the property of the Derways plant will be sold. Real estate, equipment and other assets are sold in one lot for about 1.5 billion rubles. Read more here.

2019

During the year, Russian automobile plants produced 1.72 million cars

In 2019, Russian automobile plants produced a total of 1.72 million units of automotive equipment. AvtoVAZ has the largest share in the Russian auto industry (20.5%).

The number of cars produced in the countries of the world in 2014 and 2019

Reduction in production, growth in exports and imports of cars

2017: Draft Auto Industry Export Development Strategy

The Ministry of Industry and Trade of Russia presented in June 2017 a draft strategy for the development of exports of the automotive industry and the production of automotive components in the Russian Federation for the period until 2025. The document defines priority areas for export development, measures to support the industry, targets and resource support.

Export development will allow us to continue the long-term program for the development of the automotive industry and provide an additional incentive for localizing key technologies in Russia, which are used in many industries.

Within the framework of the project, a wide discussion of the export potential of the automotive industry, barriers and necessary support measures was held with industry participants. Based on the results, four main areas of the Strategy were identified, for each of which a specific programme of activities was prepared:

• Creation of a common institutional environment for the operation of export-oriented enterprises of the automotive industry, including large automakers, as well as medium and small companies operating in the components and subcomponents market;
• Support the export of national producers, including the development of sales/service networks, the development and adaptation of products, effective financing schemes;
• Encouraging international automakers to place assembly plants of export-oriented models in Russia for the global market;
• Encouraging international automakers to place orders for components for foreign assembly plants in Russia.

The program of activities includes both organizational measures, including the formation of Free Trade Zones with priority markets and targeted refinement of the legislative environment, as well as measures of tax incentives and financial support.

In the basic scenario for the implementation of the strategy and proposed support measures, an increase in the volume of exports of automotive industry products is expected in the amount of 4.9 billion. dollars USA

2016: Car exports $2.4 billion

In 2016, the total export of automotive products amounted to $2.4 billion. US excluding tires ($3.4 billion USA including tires). In 2016, 82 thousand cars were exported, including 67 thousand cars, 6 thousand light commercial, 8 thousand trucks and about 2 thousand buses.

2012

Take-off production of Toyota, General Motors, Nissan and Hyundai cars in St. Petersburg

From January to October 2012, St. Petersburg automobile plants Toyota, General Motors, Nissan and Hyundai produced 317 thousand cars, which is 61 percent higher than in the same period in 2011. It is reported by "Auto-Dealer-SPb." By the end of the year, the volume of cars produced in the northern capital will reach 390 thousand.

According to the results of ten months of 2012, the share of the St. Petersburg automobile industry amounted to 19.8 percent of the all-Russian production of cars. At the same time, production growth in St. Petersburg is significantly higher than the national average.

So, in October in St. Petersburg, production increased by 18 percent compared to 2011 - up to 35 thousand cars. The national average was just 11 percent. The total production of cars in Russia from January to October increased by 14 percent.

As of November 2012, 10 models of machines were produced at the factories of St. Petersburg. Among them:

• Hyundai Solaris,
• Kia Rio,
• Chevrolet Cruze,
• Opel Astra и
• Toyota Camry, which are among the top 25 best-selling cars in Russia. In addition, in St. Petersburg collect:
• Nissan Teana,
• Nissan X-Trail,
• Nissan Murano,
• Infiniti FX и
• Infiniti M.

In the Leningrad Region (Vsevolozhsk), Ford Focus and Mondeo cars are also assembled.

According to the results of the first quarter of 2012, the volume of car production at St. Petersburg automobile plants increased 2.3 times and amounted to a total of 91,161 cars.

As of April 2012, the following models are produced at St. Petersburg automobile plants:

• Nissan Tiana,
• Nissan Murano,
• Nissan X-Trail,
• Toyota Camry,
• Hyundai Solaris,
• Kia Rio,
• Chevrolet Cruze,
• Chevrolet Captiva и
• Opel Antara.

The implementation of all autocluster projects attracted a total investment of 81.8 billion rubles to the city economy. At the same time, the aforementioned foreign automakers plan to expand the line of models produced in the region, and some companies that do not have production here are considering opening it.

The share of Russian-made foreign cars in the total production of passenger cars in Q1 reached 68.9%

In the first quarter of 2012, the share of Russian-made foreign cars in the total production of passenger cars in Russia reached 68.9 percent, Avtostat reports, citing a study by ASM-Holding. In total, 449.6 thousand cars were produced in Russia in the first three months, of which 309.7 thousand were foreign cars. Compared to the first quarter of 2011, the production of foreign cars in Russia increased by 42.7 percent.

The largest manufacturer of foreign cars in Russia was the Kaliningrad enterprise Avtotor"," from the conveyors of which 56,065 cars of brands, Chevrolet and Kia BMW Opel came off. The Petersburg plant Hyundai took second place, releasing 54,510 Solaris and Rio machines in January-March 2012.

The increase in the share of foreign cars in the total production of cars in Russia is due to the expansion of the model range and an increase in the production capacity of foreign manufacturers, as well as a decrease in production by the Russian automotive industry. As noted by Avtostat, in 2007 the share of Russian-made foreign cars in the total production of cars in Russia was 35.4 percent, and three years earlier - only 11.6 percent. For the first time, the share of foreign cars exceeded the threshold of 50 percent and reached 52 percent in 2010.

2010: 39,100 cars produced at factories in St. Petersburg

In the first quarter of 2010, the total production of cars in St. Petersburg amounted to only 39,100 cars.

1978

CPSU Secretary General Leonid Brezhnev inspects the novelty of the Zaporizhzhya Automobile Plant, Yalta, 1978.

1958

Hand-assembled Leningrad convertible, 1950s.

1902: Contract for the right to assemble Daimler cars in Russia

31.03.1902 contract for the right to assemble Daimler cars in Russia has been signed. Over 7 years, about 100 cars have been produced.

Notes