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Russian Car Plants Increased Production Despite Falling Demand

Russian Car Plants Increased Production Despite Falling Demand
Russian Car Plants Increased Production Despite Falling Demand

For 7 months of 2019, 241.5 thousand cars of domestic brands were produced at Russian car factories, which is 6% more than a year earlier. The production of foreign cars for the same period showed only a slight increase - by 0.4%, 650.4 thousand cars. The share of domestic cars in the total volume of production reached 27.1% (plus 1.1 points), according to the analytical company "ASM-holding".

At the same time, the growth in production of Lad cars exceeded the sales of this brand - 6.6% versus 3%. The main plant in Togliatti showed a 7.1% increase in production. Other Russian car factories have achieved the following results:

  • LADA Izhevsk - plus 7%;
  • ChechenAvto (Lada) - minus 23.4%;
  • UAZ - minus 8.6%.

The highest production growth among factories of foreign manufacturers was at the PSMA RUS enterprise in Kaluga (Citroen, Mitsubishi, Peugeot), plus 24.8%. Other factories showed less significant numbers:

  • Avtotor, Kaliningrad (BMW, Hyundai, Kia) - plus 15.8%;
  • Volkswagen Group Rus, Kaluga (Volkswagen, Skoda) - plus 9.8%;
  • Mazda Sollers Manufacturing Rus, Vladivostok - plus 11.7%;
  • Toyota Motor, Nissan Manufacturing Rus and Hyundai Motor Manufacturing Rus, St. Petersburg - in aggregate plus 3.8%.

In addition, production volumes increased at two new car plants: Havel Motor Manufacturing Rus in the Tula Region and Mercedes-Benz Manufacturing Rus in the Moscow Region. These enterprises are capable of producing up to 150 thousand and 25 thousand cars per year, respectively.

Only two brands reduced the production of cars: the Togliatti Chevrolet plant reduced production by 20%, and the Renault plant - by 9%. Also, by the fall, the assembly of Ford cars in Russia was completely stopped.

The total volume of passenger car production at Russian car factories in the first 7 months of 2019 amounted to 891.9 thousand units, which is 1.9% more than a year earlier. Manufacturers shipped to dealers by 1.2% more cars than in January-July 2018 - 860.5 thousand units. According to the traffic police, during this period, 866 thousand new passenger cars were registered - 1.3% less than in the first 7 months of 2018.

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