Auto production in Russia increasing since 2017
- The volume of Russian automotive production (VP + VU) has been on a roller coaster since 2005. From 1.35 million units in 2005, Russian production dropped to 780,000 in 2009, due to the fall of the market Russian automobile that year (Russian production is highly dependent on the domestic market, exports being extremely low since the fall of the USSR in the early 1990s).
- The restart of the Russian market was effective in 2010 and Russian production reached 2.3 million units in 2012. But the economic sanctions against Russia (consequence of the war in Ukraine and annexation of the Crimea) have again plunged the Russian market and Russian production into disarray from 2013 to 2016. The volume of Russian production has fallen to 1.3 million units in 2016. The reduction of sanctions since last year created the resurgence of the Russian market in 2017, and the year 2018 confirms this trend, since 2 million units will probably be reached again at year’s end.
- By manufacturer, we see that the Renault-Nissan group (mainly Lada) accounts for only 39% of Russian production in 2017, compared to 45% in 2010 and 62% in 2005. This leading group in Russia must now deal with groups Hyundai-Kia and Volkswagen, while the GM and Ford groups have almost completely disappeared, probably a consequence of the harshness of US sanctions against Russia.
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