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Why are they building new car factories in Russia when the old ones are standing still?

  • January 15, 2024
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There are still a number of car assembly plants in Russia idle, where almost everything is ready to start production of any car, provided that the equipment is

Why are they building new car factories in Russia when the old ones are standing still?
There are still a number of car assembly plants in Russia idle, where almost everything is ready to start production of any car, provided that the equipment is reconfigured. However, instead of breathing new life into old machine building locations, we actively relocate new ones. The AutoVzglyad portal found out what actually lies behind such decisions.

While the Hyundai plant in St. Petersburg decides whether to launch Chinese or Japanese cars, the former Nissan plant and the former GM plant that was transferred to Hyundai are still inactive. AVTOVAZ did not get along well with FAW, and so the Nissan plant went on hiatus again, and the JEM workshops continue to collect dust and are shut down.

Not all is well with the Kaluga cluster either. It seems that the green light has been given for the resumption of production, but it seems that even the country’s authorities do not yet know which specific models will be registered here. The situation is similar to the former Mercedes-Benz plant in Solnechnogorsk, near Moscow. What can we say about other enterprises, of which there are more in Russia than you think.

However, it was planned that both the Circassian “Derways” and the Mikhailovsky “Stavopol Auto”, where Chinese cars were previously produced, would be transferred to newly minted eastern partners and then completely transformed into industrial parks. Let’s not forget about TagAZ, which, however, they decided to refocus on the production of equipment for harvesting forage crops, grain processing and tillage.

They promise to show us the first fruits this year. But promising doesn’t mean you’re getting married. This is exactly what happened to the Bryansk Automobile Plant, which managed to advertise a new anti-sanction truck, which has not yet gone beyond presentation videos. But tractors for the oil and gas industry are assembled here. This is of course a much more practical and profitable business: oil and gas are everything to us.

It is fair to say that the once revived Chinese companies that announced the organization of local production in our country have so far largely limited themselves to words. But many people promised to assemble cars in Russia: Hongqi, SAIC, Zotye, Changan, Chery. By the way, the latter brand often “shines” with its products in various assembly plants, and Changan even managed to receive a large delegation of high-ranking officials from Russia in China, where possible interactions on localization were discussed.

But so far we repeat that no new models have appeared in our factories. Unless, of course, you count Avtotor, which launched the production of products from several Chinese brands at once. However, it is still too early to talk about the effectiveness of the project. Meanwhile, consumer interest is regularly stimulated by information about the construction of new car factories.

At the same BAZ, for example, they promised to open a passenger car division and put a budget car a la Renault Logan on the assembly line. As you know, they wait three years for what was promised. But in Saratov the little-known company AlfaTech decided to organize the production of electric cars, batteries and charging stations. Of course, Chinese. AND?..

What to do if there is no place to rehouse idle factories? That’s right: come up with a new one. Because, by the way, this was done by the Rezinotekhnika company, which organized the production process of parts for the departed Nissan, Mitsubishi and Renault in the Saratov region. Why not? Someone has to compete with KamAZ, whose facilities supply spare parts for the same Renaults. And a certain small office under the loud name “Trend” announced plans to build a factory for the production of heavy trucks near Novosibirsk. However, I have not yet specified which and why.

One thing is clear: all attempts are related to the development of the budget, and we all know very well how to manage it. It seems that potential partners are also aware of this and in fact ‘die off’ even before the start of the implementation of a beautifully promoted startup. And you cannot argue: doing business in Russian is not about business or money, but exclusively about money. But as usual, things can wait…

Photo globallookpress.com
Photo globallookpress.com

While the Hyundai plant in St. Petersburg decides whether to launch Chinese or Japanese cars, the former Nissan plant and the former GM plant that was transferred to Hyundai are still inactive. AVTOVAZ did not get along well with FAW, and so the Nissan plant went on hiatus again, and the JEM workshops continue to collect dust and are shut down.

Not all is well with the Kaluga cluster either. It seems that the green light has been given for the resumption of production, but it seems that even the country’s authorities do not yet know which specific models will be registered here. The situation is similar to the former Mercedes-Benz plant in Solnechnogorsk, near Moscow. What can we say about other enterprises, of which there are more in Russia than you think.

However, it was planned that both the Circassian “Derways” and the Mikhailovsky “Stavopol Auto”, where Chinese cars were previously produced, would be transferred to newly minted eastern partners and then completely transformed into industrial parks. Let’s not forget about TagAZ, which, however, they decided to refocus on the production of equipment for harvesting forage crops, grain processing and tillage.

They promise to show us the first fruits this year. But promising doesn’t mean you’re getting married. This is exactly what happened to the Bryansk Automobile Plant, which managed to advertise a new anti-sanction truck, which has not yet gone beyond presentation videos. But tractors for the oil and gas industry are assembled here. This is of course a much more practical and profitable business: oil and gas are everything to us.

It is fair to say that the once revived Chinese companies that announced the organization of local production in our country have so far largely limited themselves to words. But many people promised to assemble cars in Russia: Hongqi, SAIC, Zotye, Changan, Chery. By the way, the latter brand often “shines” with its products in various assembly plants, and Changan even managed to receive a large delegation of high-ranking officials from Russia in China, where possible interactions on localization were discussed.

But so far we repeat that no new models have appeared in our factories. Unless, of course, you count Avtotor, which launched the production of products from several Chinese brands at once. However, it is still too early to talk about the effectiveness of the project. Meanwhile, consumer interest is regularly stimulated by information about the construction of new car factories.

At the same BAZ, for example, they promised to open a passenger car division and put a budget car a la Renault Logan on the assembly line. As you know, they wait three years for what was promised. But in Saratov the little-known company AlfaTech decided to organize the production of electric cars, batteries and charging stations. Of course, Chinese. AND?..

What to do if there is no place to rehouse idle factories? That’s right: come up with a new one. Because, by the way, this was done by the Rezinotekhnika company, which organized the production process of parts for the departed Nissan, Mitsubishi and Renault in the Saratov region. Why not? Someone has to compete with KamAZ, whose facilities supply spare parts for the same Renaults. And a certain small office under the loud name “Trend” announced plans to build a factory for the production of heavy trucks near Novosibirsk. However, I have not yet specified which and why.

One thing is clear: all attempts are related to the development of the budget, and we all know very well how to manage it. It seems that potential partners are also aware of this and in fact ‘die off’ even before the start of the implementation of a beautifully promoted startup. And you cannot argue: doing business in Russian is not about business or money, but exclusively about money. But as usual, things can wait…

Source: Avto Vzglyad

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