Russia is one of the leading automotive producers worldwide. In 2021, nearly
in the country. The
. One of the reasons for the trade deficit was the fact that exports of the domestic brand Lada to the European Union (EU) ceased in 2018 due to environmental regulations. As part of the sanctions in response to the war in Ukraine, the EU, the United States, the United Kingdom (UK), and Japan banned exports of luxury cars to Russia in March 2022. Furthermore, the Russian government banned exports of passenger cars previously imported to the country until the end of 2022.
Exodus of foreign car manufacturers from Russia
International automotive companies like Mercedes Benz, Volkswagen, BMW, Toyota Motor, Nissan, General Motors, Audi, Skoda and many others limited their operations temporarily or permanently left the Russian market in 2022, thus affecting thousands of employees in the country. For instance,
Renault Group counted about 45 thousand employees in Russia before leaving the market. In general, there were nearly
60 thousand employees in automotive companies that suspended operations in the country. Volkswagen, Renault Group, and Toyota Motor were among the 10
highest-earning foreign companies in Russia in 2021.
Passenger cars
The steadily growing Russian
car market is expected to reach nearly 390 thousand vehicles per thousand inhabitants in 2025. Moscow accounted for the largest
passenger car parc nationwide, followed by the Moscow Oblast and the Krasnodar Krai.
Lada was the leading brand primary by new registrations in June 2022. Lada vehicles are produced by the Russian company AvtoVaz, which was co-owned by Renault until May 2022. The French company, which used to hold 68 percent of stakes of AvtoVaz, sold them to the Russian Central Research and Development Automobile and Engine Institute, a state entity, for one Russian ruble. The transfer agreement reportedly included a clause with an option for Renault to buy its shares back within six years.
Commercial vehicles
The
production volume of commercial vehicles and trucks was considerably lower than that of passenger cars in Russia. However, in contrast to the passenger car segment, domestic manufacturers of commercial vehicles outnumbered foreign companies in terms of production. Gaz and Uaz were the
leading manufacturers of light commercial vehicles countrywide, while Kamaz dominated the
heavy commercial vehicle segment. All three companies were headquartered in Russia.
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