Mass production commenced at the capital’s Moskvich auto plant, with the Moskvich 3 crossover taking the first roll off the line.
The opening ceremony drew high-level attention, including officials such as Deputy Prime Minister and Minister of Industry and Trade Denis Manturov and Moscow Mayor Sergei Sobyanin. The speakers outlined plans to expand electric vehicle production and to move the factory toward greater technological self-sufficiency.
Manturov stated that SKD assembly for Moskvich 3 and its electric variant would begin in 2022. He described a near-term goal of establishing small module-assembly chains with local suppliers by the end of 2023, followed by the creation of a domestic universal platform for an electric vehicle, slated to start production at the end of 2025. This account reflects remarks reported by the ministry’s press service.
The Ministry of Industry and Trade promised that Moskvich crossovers would reach the dealer network in March 2023. Manturov added that future plans include incorporating brand models into state support programs, though the estimated price for the new Moskvich models was not disclosed at that time.
By 2025, clear targets were set to boost technological independence, culminating in full localization, access to supply chains, painting capabilities, and total independence by 2027, according to Manturov.
The Moskvich 3 is a reimagined version of the Chinese crossover JAC JS4, with the base configuration priced at approximately 1,999,000 rubles. The Moskvich 3e, an electric variant inspired by the JAC iEV4, carries a similar price range.
The Moskvich 3 features a gasoline turbo engine with a CVT automatic or a six-speed manual transmission. It is a compact front-wheel-drive crossover measuring 4410 mm in length, 1800 mm in width, and 1660 mm in height, with a 2620 mm wheelbase and a curb weight around 1440 kg. The electric 3e will house a 68 horsepower motor and a 55 kWh battery, offering an estimated range of about 410 km.
“Cars should be more affordable”
Details on the price of Moskvich models remained undisclosed, with expectations tied to the original Chinese JAC offerings. On November 16, the head of state directed Manturov to monitor prices and curb unreasonable increases across the supply chain and logistics network.
President Vladimir Putin emphasized the need for careful pricing oversight to prevent price gouging and to ensure that automotive equipment does not become unaffordable. He called for making cars more accessible to Russian families and advised boosting the efficiency of automotive production to meet current conditions.
In response, Manturov proposed expanding preferential car loan programs to include military personnel, a proposal endorsed by the president. He also noted stabilization in the automotive sector and growing momentum on the production line.
Shifts in the global automotive landscape
Following Russia’s policy actions, several foreign automakers halted operations at Moscow-area plants and some ultimately exited the Russian market. Renault transferred majority ownership to Moscow authorities; AvtoVAZ shares formerly under Renault were allocated to FSUE NAMI, with remaining stakes going to a state company, Rostec. The move represented a repurchase opportunity without a return option for the selling party.
In the wake of the special operation in Ukraine, other global brands signaled plans to retreat from Russia. Ford, Isuzu, Lexus, Mazda, Mercedes, Nissan, Toyota and others paused or redirected production, with some capacities sold to domestic businesses or authorities. A number of factories suspended output, including those associated with Hyundai, Volkswagen, Skoda, Peugeot, Citroën, Opel, Fiat and Mitsubishi brands. The Moscow Mercedes-Benz plant changed ownership as part of broader restructuring. Across the country, a significant portion of automotive components and engines remained idle.
Industry data from the European Automotive Association highlighted Russia’s top-selling models in 2021, led by the LADA Vesta and LADA Granta, followed by the Kia Rio. Among crossovers, Hyundai Creta dominated the segment, with Hyundai Solaris close behind in the sedan category. This snapshot illustrates the shifting market dynamics as production and brand footprints continue to evolve in the region.