Russia Produces Former Soviet 'Moskvich' Cars at Factory Abandoned by Renault

[Photo by Reuters]

[Asia Economy Reporter Park Byung-hee] The UK’s BBC reported on the 22nd (local time) that Russia will produce the Soviet-era car brand 'Moskvich' at the factory from which Renault withdrew.

Renault decided to withdraw from the Russian market after Russia invaded Ukraine, and Russia took over and nationalized the Renault factory.

In May, Renault sold its 68% stake in the Russian car company 'Avtovaz' to the Russian government for just 1 ruble, with the condition that it can repurchase the shares within six years. Renault also sold 100% of its stake in the Moscow-based car factory 'Renault Rossiya (Renault Russia)' to the Moscow city government for only 1 ruble.

Russian truck manufacturer Kamaz announced that starting next month, it will produce cars at the nationalized Renault factory and sell them under the Moskvich brand. Moskvich, meaning a person from Moscow or Moscow native, was privatized following the dissolution of the Soviet Union and went bankrupt in 2002.

According to an anonymous source, Kamaz signed a contract in July as a technical partner of the former Renault factory. The Chinese automaker JAC is also reportedly assisting in car production at the Renault factory.

However, due to Western sanctions, it is expected to be difficult to procure the parts necessary for car production.

Kamaz stated that it plans to gradually build a supply chain based on Russian parts suppliers but expects production to be limited.

Kamaz said it will produce 600 units by the end of this year and increase annual production to 100,000 units in 2024, including some electric vehicles.

BBC explained that an annual production of 100,000 units is far below the output of a typical car manufacturing plant.

Earlier this year, a foreign media outlet reported that Russia’s car sales this year are expected to fall below 1 million units for the first time in modern Russian history.

This content was produced with the assistance of AI translation services.