Rosstat reported that passenger car production in the country will fall to an all-time low of 450,000 units in 2022. Thus, the anti-record of 2009 was broken, when 597,000 cars were produced at domestic auto plants. Then the reason for the failure was the global financial crisis of 2008. Now the exodus of foreign car manufacturers from our market and the consequences of sanctions that disrupted supply chains in the automotive industry have led to a catastrophic drop in car production in Russia . To appreciate the magnitude of the 2022 collapse, let’s say about 1.5 million cars rolled out of the gates of domestic auto companies in 2021.

Let’s also recall that AVTOVAZ assembled only about 200,000 cars last year. And the production program for the current year implies an increase in production to 400,000 units. In this respect, the Ministry of Industry and Commerce’s expectations for the current year look interesting. Officials forecast the total production volume of passenger cars and light commercial vehicles in Russia at the level of 470,000 units, and the number of units sold should reach 960,000 units. This is despite the fact that only 680,000 cars were sold on the Russian car market in 2022.

For example, we see that the Ministry of Industry and Trade does not really hope for a significant increase in car production in the country – despite numerous reports about the launch of more and more new assembly plants for Chinese models on Russian territory.

Rosstat reported that passenger car production in the country will fall to an all-time low of 450,000 units in 2022. Thus, the anti-record of 2009 was broken, when 597,000 cars were produced at domestic auto plants. Then the reason for the failure was the global financial crisis of 2008. Now the exodus of foreign car manufacturers from our market and the consequences of sanctions that disrupted supply chains in the automotive industry have led to a catastrophic drop in car production in Russia . To appreciate the magnitude of the 2022 collapse, let’s say about 1.5 million cars rolled out of the gates of domestic auto companies in 2021.

Let’s also recall that AVTOVAZ assembled only about 200,000 cars last year. And the production program for the current year implies an increase in production to 400,000 units. In this respect, the Ministry of Industry and Commerce’s expectations for the current year look interesting. Officials predict the total production volume of passenger cars and light commercial vehicles in Russia at the level of 470,000 units, and the number of units sold should reach 960,000 units. This is despite the fact that only 680,000 cars were sold on the Russian car market in 2022.

For example, we see that the Ministry of Industry and Trade does not really hope for a significant increase in car production in the country – despite numerous reports about the launch of more and more new assembly plants for Chinese models on Russian territory.