In 2023 the Moskvich automobile plant reported a sharp deterioration in its financial results, with net losses rising to 8.6 billion rubles, an increase of about 3.6 times according to sources cited by interfax.ru drawing on company disclosures. The same period saw a notable shift in revenue, which grew by nearly 39 percent to 59.2 billion rubles, while gross profit contracted dramatically by 74.6 percent to just above 1.6 billion rubles. The company’s total debt also climbed, reaching 42.6 billion rubles, up about 2.5 times from the previous year. These figures underscore a challenging year for Moskvich, reflecting intensified costs and tighter margins amid a difficult market environment.
Earlier statements from Sergei Kogogin, the General Director of KamAZ PJSC and head of Moskvich, indicated an assessment of the 2023 results as a loss around 160 million rubles. Those remarks were shared in the context of a broader restructuring narrative as the group evaluated production strategy and financial resilience. The management conceded that maintaining the previously announced plan to reach 50,000 cars per year would be unlikely under the then-current conditions, with possible adjustments pointing toward a break-even level closer to 40,000 vehicles. Projections for the year ahead suggested a lower output, in the range of 30,000 to 35,000 cars, as the company sought to stabilize production economics and cash flow.
During 2023 Moskvich operated several vehicle lines, including the Moskvich 3 urban crossover, the Moskvich 3e electric vehicle, and the Moskvich 6 sedan. Shipments to dealers approached 19,000 units, with roughly 15,300 vehicles subsequently sold to customers, highlighting a solid distribution of inventory across the month and the ongoing challenge of aligning supply with demand. The year also reflected a transitional period as Moskvich prepared for broader manufacturing changes and product introductions that would shape its competitive stance going forward.
Looking ahead, Moskvich announced plans to move toward full-cycle production in 2024 and to introduce at least one additional model, including the Moskvich 8 D-class crossover. There was also anticipation around the potential arrival of the Moskvich 5, a converted version of the JAC Sehol X6, which would expand the brand’s lineup and leverage existing relationships with partner manufacturing entities. These strategic steps were framed as essential to strengthening the plant’s positioning in the domestic market and supporting long-term growth despite the 2023 performance headwinds.
In the broader industry context, the Moskvich situation fit a pattern observed among several domestic car manufacturers in Russia, where production plans and profitability metrics fluctuated due to shifting demand, currency dynamics, and the evolving regulatory environment. The company’s leadership emphasized a prudent approach to capacity planning, prioritizing sustainable output levels and operational efficiency as cornerstones of recovery. By focusing on core models, optimizing the supply chain, and pursuing strategic model introductions, Moskvich aimed to rebuild profitability while maintaining credibility with dealers and customers in a challenging market landscape.