Russia’s Auto Manufacturing Sector Grew By 16.5% In 2024

Russian auto factories increased production of all types of vehicles by 16.5% during 2024, with the production of some types of cars increasing while others, began to be assembled less. The domestic automobile industry has great potential for further growth, but increasing production volumes will largely depend on the general situation on the market.

Last year, Russian auto manufacturers produced a total of 985,400 vehicles, according to the Federal State Statistics Service (Rosstat) on industrial production in 2024. This figure is 16.5% higher than the results of the previous year.

In particular, domestic car factories produced 756,000 passenger cars, being 39.2% more than in 2023. Truck production increased by 8.2%, to 194,000 units, while in the bus segment, the situation is ambiguous: the assembly of models with a gross weight of more than 5 tons increased by 12.5%, to 15,500 units. But the production of small buses with a full weight of up to 5 tons on the contrary, has decreased to 19,900, which is 13.9% less than the year before.

The leader in the production of passenger cars was AvtoVAZ, from whose assembly lines 525,500 cars rolled off last year. Among truck manufacturers, KamAZ took first place, with 54,600 units, while in the bus segment, PAZ was dominant. PAZ traditionally does not disclose production volumes, however, according to the analytical agency ‘Autostat’ sold over 8,000 units.

Analysis of Rosstat data showed that the auto industry, along with other sectors – the production of metal products, as well as the production of computers, electronic and optical products – is a key driver of the Russian manufacturing industry.

Russia’s Ministry of Industry and Trade has stated that an important role both for the development of industry in general and for the production of vehicles in particular is the inbuilt system of cooperation between market participants. Thanks to this, they can predict the range of products and their volumes that will be in demand in the long term.

Last year, several previously shuttered car factories were reopened in Russia as the industry recovers and has moved on from sanctions and the exit of Western manufacturers. For example, at the former Nissan plant near St. Petersburg, production of crossovers of the Xcite brand began. In the Leningrad region, the AGR company began producing Solaris cars at the end of last winter. Also, in autumn last year, Sollers launched the production of trucks in Ulyanovsk and production of buses in Vladivostok.

In addition to the restart of car factories over the past year, new models have appeared on the conveyors of existing enterprises. For example, AvtoVAZ has started assembly of the Lada Largus station wagons and vans in Izhevsk, while production of the Lada Aura started in Tolyatti last September. At the same time, production of the H3 compact crossover began at the Haval plant in Tula. In 2024, Evolute began producing i-Sky and i-Jet electric vehicles in the Lipetsk region, as well as i-Space hybrids, while Citroen cars began to be assembled in Kaluga.

New models and production will also appear during 2025. In Lipetsk, Voyah hybrid cars are now being manufactured, while in early summer, assembly of Haval M6 crossovers will begin in Kaluga. A serial release is planned for BAZ trucks near St. Petersburg. In addition, during H1 2025, the AvtoVAZ assembly line will begin to produce the Lada Iskra. Also within the year, production of the much anticipated Atom EV and another crossover at the Moskvich automobile plant are expected to be launched.

What is now occurring is that auto manufacturing efforts are now aimed at ensuring that production ratios shift more towards localized business models. Should this balance in the market move to cars assembled at Russian enterprises, even if current sales volumes of new cars remain the same, car production in Russia may increase as demand is currently regionally uneven, but continues to show growth in certain regions.