New Rival: Russia! Russian Car Industry on a Surge

PHOTO (select to view enlarged photo)
General Motors Chairman and CEO Dan Akerson meets with workers at the GM factory in St. Petersburg, Russia, on Friday, June 22, 2012. (International Busisness Times)

From Mac Gordon 05-24-2013


St. Petersburg, Russia-Long a non-player in the global auto industry, the Russian car industry is harnessing its global partners to become a major producer of cars for the domestic market.

With the opening of the seventh Russian assembly plant owned by a foreign automaker, Russia has boosted its production of foreign cars to 1 million in 2012.

Foreign automakers have agreed to devote 60 percent of their Russian output to local components, including engines and transmissions.

The government-backed program in building seven assembly plants in Russia ended in 2011, when Hyundai's plant opened.

A Ford plant outside St. Petersburg opened the “incursion” of foreign auto plants in 2002. Ford was followed by Renault (2005), Volkswagen and Toyota (2007 each), Chevrolet (2008), with a Malibu-like sedan called the Lacetti, and Peugeot/Citroen/Mitsubishi, in 2010.

The surge in Russian sales of foreign cars led to 1.22 million retail deliveries in 2012.

Price Waterhouse analysts see the total rising this year to 1.33 million this year, with Russia's Ministry of Industry and Trade forecasting up to 4.17 million by 2020, of which 3.75 million will be produced in Russia.

The Russian government has agreed to eliminate duties on imported automotive components, in exchange for 60 percent of output in the seven “foreign” plants going to local suppliers.

Home | Buyers Guides For Every Auto Make | New Car Buyers Guide | Used Car Super Search | Total New Car Costs | 2016-1993 Car Reviews Truck Reviews
1996-2016 Automotive News | TACH-TV | Media Library | Discount Auto Parts

Copyright © 1996-2016 The Auto Channel. Contact Information, Credits, and Terms of Use. These following titles and media identification are Trademarks owned by The Auto Channel, LLC and have been in continuous use since 1987 : The Auto Channel, Auto Channel and TACH all have been in continuous use world wide since 1987, in Print, TV, Radio, Home Video, Newsletters, On-line, and other interactive media; all rights are reserved and infringement will be acted upon with force.

Privacy Statement | Size Does Matter | Media Kit | XML SITE MAP | Affiliates

Send your questions, comments, and suggestions to

Submit Company releases or Product News stories to
Place copy in body of email, NO attachments please.

To report errors and other problems with this page, please use this form.

Link to this page: