The 10 biggest brands in Russia and their difficulties.
By Wolf Richter for WOLF STREET.
New vehicle sales have been a mess in every country over the past two years – in the US they were down 25% in June from June 2019 – hampered by supply issues, shortages of semiconductors and various lockdowns, including the lockdowns in Shanghai which are further disrupting supply chains. For some European automakers, Russia’s invasion and bombing of Ukraine disrupted the flow of components from Ukraine.
But new vehicle sales in Russia are in a league of their own, in terms of the degree of collapse and chaos they face.
In June, sales of passenger cars and light commercial vehicles (LCVs) fell 82% from June last year to 27,761 vehicles, after falling 84% in May and 79% in April , according to the European Business Association, which collects and reports data on this industry. Car production in Russia has been thrown into chaos that far transcends the supply chain issues that plague car production in other countries.
Top 10 brands in Russia.
Based on their sales volume in 2021, here are the top 10 brands in Russia, along with the number of vehicles they sold in June 2022 and the percentage drop from June 2021:
|Rank in 2021||Mark||June sales||% YEAR|
Russian automakers depend on imported components, especially electronic ones, and the flow of these components, already stressed for the entire industry worldwide, has been thrown into total chaos due to the sanctions. .
AvtoVaz, owner of Lada, is the largest automaker in Russia. It is majority owned by Alliance Rostec Auto BV, itself owned by Renault and the Russian company Rostec. The company also manufactures Russian versions of Renault and Nissan models.
Renault said in May that it would sell its 69% stake in AvtoVaz and its Moscow plant to the Russian government. The deal included an option to buy out his stake over the next six years. Terms were not disclosed, but Trade and Industry Minister Denis Manturov said the deal could be done for a token ruble, according to the AP, citing Russian media.
Renault CEO Luca de Meo said that “we are making a responsible choice towards our 45,000 employees in Russia, while preserving the Group’s performance and our ability to return to the country in the future, in a context different”.
AvtoVaz said earlier this year that it would only produce Lada models with less foreign content and forget about airbags, electric power steering systems and anti-lock brakes. It halted production in late April and May due to component shortages, but resumed production on June 8 of the Lada Granta.
But this Granta would be a simplified version with fewer imported components. It is “the most affordable new car on the Russian market,” the company said, according to Tass. “The model was developed with the aim of providing as much vehicle localization as possible, excluding the effect of shortage of imported components.”
Kia and Hyundai said in April that it would continue to assemble vehicles at its factories in Russia. But they halted assembly operations due to component shortages, including electronic components. At the end of May, they resumed production, but at a much smaller volume and with missing parts and unfinished vehicles piling up, waiting for components to appear.
Volkswagen, owner of VW and Skoda, among others, said in March that it had stopped production until further notice at its Kaluga plant, which it owns, and at the Nizhny Novgorod plant, which belongs to the GAZ group, which assembles certain VW models under contract. . At the time, Volkswagen also said it would stop vehicle exports to Russia.
Nissan halted production at its St. Petersburg plant in March. In May, he revealed he had canceled his 52.6 billion yen ($500 million) investment in Russia. At the end of June, it extended the shutdown of its production for another six months.
GASa Russian company, produces commercial vehicles, buses and powertrains, including light commercial vehicles (LCVs), such as pickup trucks, which are included here.
haval, a Chinese automaker, which manufactures several models at its factory in the Tula region, said in April that it would continue to produce vehicles in Russia. It is struggling with the same supply issues as all automakers, and sales fell 53%, but that was less than the collapse of other brands, and it more than doubled its market share to 5.9%. Other Chinese automakers are now also eyeing the Russian market.
American automakers are gone in 2019 for the most part…
GM exited production in Russia in 2019 by selling its 50% stake in a joint venture to partner AvtoVaz. The company had produced vehicles under the Chevrolet brand. From then on, GM only exported a small number of vehicles to Russia, which it has now stopped.
Ford, also in 2019, halted production of passenger vehicles at Ford Sollers, a joint venture in Russia. Ford Sollers, of which Ford holds only a minority stake, produced only Ford-branded commercial vans. In March, it suspended production of the pickup trucks.
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