Русский
In another indication of how Western sanctions have spurred Russia’s domestic industries, a St. Petersburg-based plant formerly belonging to Japanese automaker Toyota has been transferred to Russian high-end carmaker Aurus, according to Denis Manturov, Russia’s acting Minister of Industry and Trade. Production of Aurus cars at the plant will start before the end of 2024.
Toyota shut down the plant in 2022 and left the Russian market as part of their sanctions against Moscow, with this designed to hurt Russian consumers with no access to what had previously been a significant Russian domestic market share. Both new vehicles and spare parts were withdrawn from the Russian market creating difficulties for vehicle maintenance – including those under Toyota warranty.
After an initial slump created by sanctions and the withdrawal of Western marques from Russia, Russia’s auto sales have significantly recovered, albeit with a complete change of available brands. Chinese autos for example have increased their market share from 5% to 45% in Russia while Russian brands have also recovered and are now wholly-Russian owned. That means all profits now go directly the Russian treasury rather than being repatriated back to Japan, Europe or the United States.
The St.Petersburg factory, which produced Toyota’s Camry and RAV4 models, was later sold to Russia’s Central Scientific Research Automobile and Automotive Engines Institute, abbreviated as NAMI, which owns the Aurus brand. In 2022, NAMI also acquired French car maker Renault’s controlling stake in the Russian car manufacturer AvtoVAZ.
Aurus is a line of luxury vehicles that was created with the aim of replacing the fleet of mostly foreign-made cars used by top Russian officials. The brand debuted at Russian President Vladimir Putin’s inauguration in May 2018. This Tuesday, President Putin used the latest version of the Aurus sedan to arrive at his inauguration ceremony in Moscow.
The cars are currently assembled at NAMI’s factory in Moscow and at an assembly plant in Tatarstan, which used to be a joint venture between Russian company Sollers and the US manufacturers Ford. Last year, Aurus production was launched in the United Arab Emirates. In January, Manturov said that Aurus was expected to broaden its range of vehicles by adding more affordable and mass-market models. Sales of new large executive and business class sedans will be launched in 2025. In February 2024, President Putin gifted an Aurus to North Korean leader Kim Jong-un.
