Russia’s automotive sector was the hardest hit of all industries by the start of the war. From producing around a million cars a year, output fell to a low of a total of only 3,000 cars in July of the first year of war, as the sector came to a screeching halt.
While most of the leading European Original Equipment Manufacturers (OEMs) had set up factories in Russia, they were careful to continue to import up to 60% of parts from their factories in Europe, making the sector particularly vulnerable to self-imposed sanctions that halted production in Russia.
As bne IntelliNews reported, the sector has since recovered most of the ground lost and is on course to get back to the million cars a year pre-war production level, but the nature of the sector has changed dramatically.
First of all, China has stepped in to become the major supplier of exported cars to Russia and is now the biggest exporter in the world. Also in the last two years most of the Western car production factories have been taken over by Russian entrepreneurs or joint ventures to restart production – and in many cases the factories continue to make the same brands as they did before, ignoring the intellectual property ownership of the brands by the leading global car companies.
In 2021, automakers from Europe, the USA, Japan and South Korea accounted for 70% of cars sold in Russia, and taking into account the Russian national champion, and the maker of the iconic Lada, AvtoVAZ, 92% of which belonged to Renault-Nissan joint venture.
Immediately after the invasion of Ukraine, all Russian factories of these concerns stopped. The Russian car market has fallen almost threefold – from 1.54mn to 620,000.
In 2023, the economy recovered, Russians’ incomes began to grow, and the car market recovered half of the decline. Chinese models have been Russified and its factories are producing the Moskvich and the Volga, both modernised versions of Soviet-era brands, but most of the parts and technology are of chinese origin. Prices have also jumped by one and a half, or even two times.
In a report, The Bell listed the car factories, models and the changes:
AvtoVaz based in Tolyatti:
Owner: previously a joint venture with Renault-Nissan, now the Russian state
Pre-war models: Lada Vesta, Lada Granta, Lada Largus, Niva, Renault Logan/Sandero
Post-war models: Vesta, Granta and Niva
PSMA Rus in Kaluga:
Owner: previously Citroen, now the little known Automobile Technologies LLC
Pre-war models: Citroen C4, Peugeot 408, Peugeot Partner, Citroen Berlingo, Opel Combo, Mitsubishi Outlander, Pajero Sport
Post-war models: Citroen C5 Aircross made from Chinese components.
Avtoframos in Moscow:
Owner: previously Renault, now FSUE “NAMI” and the Moscow government.
Pre-war models: Renault Duster, Renault Captur.
Post-war models: Moskvich 3 (JAC JS4), Moskvich 6 (JAC A5 Plus)
Haval in Tula
Owner: China’s Jolion and ownership did not change, it remains the only full-cycle factory of a foreign company remaining in Russia.
Pre-war models: Haval Jolion, F7
Post-war models: Haval Jolion, F7, Dargo, H9
Mercedes in the Moscow region
Owner: before Mercedes, now the Avilon car dealer (Alexander Varshavsky and Kamo Avagumyan).
Pre-war models: Mercedes E-class, Mercedes crossovers
Post-war models: production is being established to assembling cars under its own brand probably in partnership with Chinese Li Auto.
Volkswagen in Kaluga
Owner: before Volkswagen, now Avilon car dealer.
Pre-war models: VW Polo and other Volkswagen, Audi models
Post-war models: production has not resumed.
Hyundai in St. Petersburg
Owner: before Hyundai, now Avilon car dealer
Pre-war models: Hyundai Solaris, Hyundai Creta, Kia Rio
Post-war models: assembly of the same cars under new brands from the remaining car kits
Lada in Izhevsk
Owner: AvtoVaz, did not change owner
Pre-war models: Lada Vesta
Post-war models: Lada Vesta
Nissan in St. Petersburg
Owner: before Nissan, now FSUE "NAMI" and AvtoVAZ
Pre-war models: Nissan Qashqai, X-Trail and Murano
Post-war models: assembly of Chinese Chery cars including currently the Tiggo 7 Pro crossover under the Xcite brand.
Toyota in St. Petersburg
Owner: before Toyota, now FSUE "NAMI"
Pre-war models: Toyota RAV4, Camry
Post-war models: Aurus executive sedans form the end of 2024
GM in St. Petersburg
Owner: before GM, now the plant has been mothballed since 2015. St. Petersburg want to turn the site into an educational training ground for technical schools.
Pre-war models: Opel Astra and Chevrolet Blaze
Post-war models: none.
Avtotor in Kaliningrad
Owner: did not change owner
Pre-war models: contract assembly of cars of various brands, including Kia, Hyundai, BMW
Post-war models: assembly of cars of Chinese brands, including Kaiyi and BAIC.
GAZ in Nizhny Novgorod
Owner: plant did not change owner (Oleg Deripaska's Russian Machines).
Pre-war models: Volkswagen Jetta, Skoda Octavia and Yeti
Post-war models: revived Soviet Volga brand based on the Chinese Changan model.
Derways in Cherkessk
Owner: Roads LLC of (Abrek Tebuev)
Pre-war models: assembly of Chinese models
Post-war models: none
UAZ in Ulyanovsk
Owner: Russia’s Sollers PJSC, plant did not change owner
Pre-war models: UAZ “Hunter”, UAZ “Patriot”, UAZ SGR (“Loaf”)
Post-war models: UAZ “Hunter”, UAZ “Patriot”, “Loaves” – including simplified versions
Sollers in Vladivostok
Owner: Russia’s Sollers PJSC, plant did not change owner
Pre-war models: Mazda6 and CX-5
Post-war models: assembly of Chinese JAC pickups under the Sollers brand.