The former Mercedes-Benz plant near Moscow, once part of a Russian factory complex repurposed by the Avtodom dealership holding, is moving toward a new phase of production with a December launch on the agenda. This plan is confirmed by Andrey Olkhovsky, the managing director of Avtodom, who spoke with RBC and outlined the current trajectory for the site. The transition signals Avtodom’s broader strategy to revitalize a key manufacturing asset that was previously under different ownership, with the aim of returning the plant to full-scale production in the near term.
Olkhovsky noted that talks are progressing with several Chinese automakers to establish manufacturing operations at the site. While the identities of the potential partners remain confidential at this stage, he clarified that Hongqi is not among them. The ongoing negotiations reflect Avtodom’s plan to diversify production partnerships and leverage the capacity of the Moscow region facility to support localized manufacturing that can serve both domestic and regional markets in North America and beyond, depending on regulatory and market conditions.
The Avtodom dealership holding acquired the Mercedes-Benz assets in Russia in April 2023. The exact purchase price for the asset package has not been disclosed publicly, but the deal included an option for the German automaker to repurchase shares at a later date should business conditions permit. This arrangement positions Mercedes-Benz as a potential backstop in the evolving ownership structure while Avtodom pursues a path toward stabilized production activities and expanded local manufacturing capabilities.
Located in the Esipovo industrial park in the Moscow region, the plant originally opened in the spring of 2019. It was designed with a yearly full-cycle production capacity in the range of 25,000 to 30,000 vehicles, depending on demand, supplier logistics, and workforce availability. The facility’s modernization and potential reconfiguration for new collaborations aim to leverage its existing machinery, supply chains, and skilled labor pool to support a modern manufacturing output that aligns with current North American market expectations and Canadian and U.S. regulatory landscapes.
In related industry developments, industry observers noted the debut of a new Chinese hatchback, the Avatr 12, which was showcased at the Munich Motor Show. While this revelation pertains to a separate brand event, it underscores a broader regional push by Chinese manufacturers to broaden their footprint in Western markets. The evolving dialogue between Avtodom, Mercedes-Benz, and prospective Chinese manufacturing partners highlights a broader trend toward regionalized production hubs that can shorten supply chains and improve responsiveness to market demands across North America and Europe alike.