In February 2022, Russia launched an invasion of Ukraine, which caused a reaction from the international community and the introduction of sanctions that forced many manufacturers to stop production in Russia. The sanctions were expected to bring the Russian economy to its knees, which happened at first, but recent information suggests that the Russians have found a solution for their automotive industry. The Russian government intends to invest up to $ 900 million in the development of a platform for their new car over the next three years.
Most of the funds come from the Russian parliament, and the project is led by NAMI (automotive institute). NAMI owns the premium brand Aurus Motors, which produces limousines for Russian President Vladimir Putin.
“By designing such a modular platform, we are laying the foundation for the development of our automobile production. It will be used for cars of various classes, from compact to business. NAMI will play a leading role in this project, and the main task is to unify the component base for this platform. The new platform will also be used for the serial production of hybrid and especially electric vehicles in the future,” said Alexey Matushansky, Director of the Department for Strategic Development and Corporate Policy at the Ministry of Industry and Trade.
The batteries for the car will be produced by Rosatom (the Russian state atomic energy company), and the construction of two battery production plants is underway.
The Russians have previously tried to restore the production of European-brand cars, but illegally. In early 2024, information appeared that the Chinese manufacturer Dongfeng Motor Group, Stellantis’ partner in China, supplied parts to the Russian company Automotive Technologies, which began assembling the Citroen C5 Aircross. This was not the first time that Chinese companies violated agreements with other manufacturers, and this time the reason could be the agreement that Stellantis reached with another Chinese company (Leapmotor).
Customs records did not show that Stellantis knew about the imports, but evidence obtained by other companies shows a lack of control over their brands in Russia after leaving the country.
Source: Reuters