Russia towards an independent production of vehicles strategy
- Western economic sanctions against Russia have caused both a fall of the local car market (notably due to the cessation of most imports) and local car production (notably due to the shutdown of a large part of the factories established in Russia).
- The automotive market has collapsed by more than 60% over the first 8 months of 2022 and the volume of Russian automotive production has also fallen by more than 60% over the same period. And the months following the invasion of Ukraine by Russia on February 24, 2022 show even greater drops, of the order of 80% to 90%.
- Faced with this industrial disaster and the departure of European and American carmakers, the Russian government decided to proceed in the same way as for other sectors of activity threatened by economic sanctions, that is to say to become self - sufficient by doing without the technology provided by Westerners (engines, automatic transmissions, ABS, airbags).
- The Soviet Union (1917-1991) had in its own way created an independent automobile industry, although Avtovaz was built with the help of Fiat and Moskvitch with the help of Renault. The acquisition of Avtovaz by Renault in 2011 and the establishment of several foreign carmakers in Russia had reduced Russian national production to a bare minimum. Vladimir Putin's objective is to recreate an independent automobile industry after the departure of Renault - former owner of Avtovaz and Avtoframos - and other European carmakers, following the invasion of Ukraine. According to the Russian government itself, car sales in Russia are not expected to return to 2021 levels until 2026 or 2027.
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