Former car factories of foreign companies are searching for Chinese partners.

The russian automotive industry suffered more than other industries from the war. The main reason was the mass exodus of foreign companies and the shutdown of their factories. In the pre-war year of 2021, they made more than 70% of the 1.34 million cars produced in russia. Of the 21 car plants operating in the country, 10 belonged to global automakers, and six more, including AvtoVAZ and Avtotor, assembled their models.

Therefore, 2022 was a catastrophic year for the automotive industry. Production has fallen by a third to the lowest since the collapse of the Soviet Union, with only 450,000 passenger cars. In 2023, production increased to 537.000, and this year it may amount to 675.000 - half as much as before the war.

The recovery of the automotive industry is highly dependent on the resumption of production at the factories of companies that have left russia which consist now almost exclusively of the assembly of Chinese models, even if they have names invented in russia. But Chinese manufacturers are in no hurry to develop local production. They prefer to sell finished cars in russia or invest serious money in neighboring countries.

As imports of Chinese cars increase, the market share of cars 'made in russia' is falling. For the first six months of 2024 they accounted to 45%, a drop from the 56% from Jan-June last year.

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Btw. production plan of AvtoVAZ (former Renault factory) for this year is to assemble 50.000 Chinese clones.

@freerussia_report