Plans are underway to restart car production at the former Mercedes-Benz facility in the Moscow region, with officials signaling a rollout as soon as possible in 2024. This update comes from government sources cited by RIA Novosti, referring to the head of Russia’s Ministry of Industry and Trade, Denis Manturov. The message is clear: the project is moving from discussion to action, with production expected to begin within the year. Manturov spoke on the sidelines of a session with the State Duma, answering questions about the timeline for resuming operations at the Esipovo plant located in the Moscow region and previously home to Mercedes-Benz manufacturing. The emphasis was on timing and the steps required to bring the site back into full production mode, reflecting a broader push to restore domestic automotive capabilities.
The Esipovo industrial park plant, which opened in spring 2019, was designed for full-cycle production with an annual capacity of approximately 25,000 to 30,000 vehicles. The facility’s scale and potential output have been a focal point of discussions about reviving manufacturing activity in Russia and reducing dependency on imports for certain vehicle segments. Rehabilitating this site is presented as a strategic move to bolster local industry, preserve skilled jobs, and support the broader goal of strengthening the domestic automotive ecosystem. While the exact production mix and model lineup remain to be finalized, the foundational capacity signals a significant uplift in local manufacturing capabilities after past disruptions. The stakeholders involved emphasize the importance of sustained investment, efficient supply chains, and quality control as pivotal elements of a successful restart.
In the commercial sphere, Avtodom, a prominent dealer holding company, emerged as the owner of the Mercedes-Benz manufacturing facility in Russia in April 2023. The transaction amount has not been disclosed publicly, but the deal included a provision that grants the German parent company the option to buy back the stake at a later date. This arrangement hints at continued strategic flexibility for both parties as market conditions evolve and domestic demand for high-profile brands and locally produced vehicles recalibrates. The ownership transition underscores how ownership structures in Russia’s automotive sector are adapting to new economic realities, with local distributors taking on more active roles in manufacturing ecosystems and investment cycles.
Alongside the Esipovo project, Russia is pursuing parallel automotive revival efforts at other legacy sites. Earlier announcements indicated that the former Volkswagen plant in Kaluga is expected to resume operations in the first half of 2024. This development reflects a broader pattern of targeted production restarts, leveraging established facilities to accelerate capacity restoration and to diversify the country’s manufacturing base. Such moves are part of a wider ambition to reconstitute domestic automotive output and support localization initiatives that align with national industrial policy goals. Observers note that success will depend on a combination of stable demand conditions, effective financial incentives, and robust supply networks for both components and finished vehicles.
In addition to these efforts, Chinese auto manufacturer Forthing has begun producing vehicles in Russia, contributing to the diversification of the local automotive landscape. The entry of Forthing into manufacturing activities adds to a growing sense of revival and competitiveness within Russia’s car production sector. The convergence of partnerships, reinvestment in legacy plants, and new foreign collaborations all point to a reinvigorated industrial story that aims to expand domestic capacity while accommodating a shifting market environment. Stakeholders continue to monitor regulatory developments, workforce training needs, and logistics readiness as these programs progress toward tangible outputs that can meet domestic consumer demand and potential export opportunities.