Chechen Republic Sets Sights on a Local Automotive Cluster
In 2023, plans emerged to establish an automotive cluster anchored by the Chechenavto plant in the Chechen Republic, a move reported by TASS citing the region’s Minister of Industry and Energy, Adam Khakimov. The initiative aims to deepen vehicle production within the North Caucasus by leveraging the existing Argun factory network and nearby suppliers.
Current operations at the Chechenavto site include the assembly of Lada Granta models. In October, a joint venture with the GAZ Group began assembling the Gazelle Next model. The startup phase of this assembly line created up to 100 new jobs, signaling a gradual expansion in local manufacturing capacity. Officials indicate that next year the facility will begin assembling UAZ vehicles, marking one of the earliest large scale vehicle sets produced under a new industrial model in Russia, as described by Khakimov.
The plan envisions annual production reaching around 16,000 vehicles at the Chechenavto plant. In addition to vehicle assembly, authorities in the republic intend to develop an industrial park dedicated to machine building, aimed at attracting supplementary production and engineering activities to the region.
Historically, the Chechenavto factory in Argun has been part of the region’s automotive story since 2008. Vehicle manufacturing in Chechnya began on the site of the former Pischemash plant. The first products were VAZ 2107 sedans, followed by the Lada Priora replacing the G7 and later the Lada Granta. The facility expanded in the fall of 2022 with the start of Gazelle Next truck production.
Recent industry reports also noted that at the close of December the top ranks of the Russian automotive market included several Chinese brands, reflecting shifts in regional demand and trade patterns across the sector.