The Ministry of Industry and Trade has outlined its role in supporting the Moscow government and KAMAZ as they organize car production at the Moskvich plant. The plan includes backing the localization of Moskvich components with soft loans provided through a special program of the Industrial Development Fund (IDF). A subsidy for research and development may also back the creation of an automotive platform for this brand, reinforcing the project’s long term ambitions.
Providing funds for component localization will come in the form of soft loans under the IDF program, while the development of a new Russian universal platform could receive grant support for R&D, according to statements from the ministry’s press service. The ministry’s leadership emphasized that this dual approach aims to accelerate domestic capabilities while fostering innovation within the automotive sector.
Under the Moskvich plant development plan, production targets call for at least 600 vehicles to be assembled using the SKD method by year-end, with roughly one third of these planned to be electric vehicles. This balanced mix reflects a strategic push to build a local supply chain while advancing electric mobility in the country.
The initial phase will rely on components sourced from partner manufacturers in friendly nations. In the second phase, the project envisions bringing more of the component production in-house, focusing on areas such as electric motors, batteries, control systems, and safety features. This shift is designed to strengthen domestic manufacturing capabilities and reduce dependence on external suppliers over time.
Additionally, it was announced that KAMAZ has begun work on its own vehicle platform as of July 6, signaling a broader move toward self-sufficiency in Russia’s automotive landscape. The platform project aims to integrate diverse subsystems and standardize production processes to support multiple vehicle configurations, potentially lowering costs and shortening development cycles for future models.