Nissan’s Russian assets move toward state ownership and implications for production

Nissan on the Russian market

Nissan has been present in Russia for three decades. In 2014 the brand achieved a peak year, selling 162,300 cars and capturing 6.9 percent of the market. Today about 117 dealerships face the task of finding new roles in the distribution chain.

What will happen next

All of Nissan group assets in Russia are planned to transfer to state ownership under FSUE NAMI, which already holds a majority stake in AVTOVAZ after Renault exited its share. The assets in question include the St. Petersburg plant (operating since 2009, producing Qashqai, X-Trail and Murano), the associated research complex, and the Moscow headquarters.

The arrangement mirrors Renault’s experience. The difference is that Renault cannot repurchase its Moscow factory, renamed Moskvich, which became the property of the Moscow government. Renault retains the option to buy back its stake in AVTOVAZ. Nissan, however, maintains a right to reacquire the St. Petersburg plant within six years.

Will production continue?

Under the asset-transfer agreement to state ownership, Nissan is winding down its activities in Russia. This means no component supplies to the factory from Nissan, and production by Nissan in St. Petersburg would be impossible without Nissan’s involvement.

NAMI is obligated to preserve the production profile and keep personnel, with passenger cars as the target output. But what can be produced? Nissan vehicles cannot be produced due to the ongoing changes. A factory in Yelabuga has been created for Lada, while Izhevsk’s capacity proved excessive, given the demand landscape.

Options on the table

Several paths exist.

• Freeze production.

Even a mothballed plant must be kept safe: powered, heated, and staffed. Salaries will come from the state budget during this period.

• Begin by producing something locally.

This sounds advantageous, but it remains slow. There are no ready-made projects that can be activated quickly like a frozen meal. Creating a genuinely new car typically takes at least five years. If an existing platform is used, such as a potential Vesta project if AVTOVAZ receives an instruction from above, a new model could require about three years, with the same challenges around component supply.

• Seek external partners to take over production at the plant.

An agreement with Nissan would enable such an arrangement. Potential partners could include Chinese manufacturers not averse to secondary sanctions or possibly Iranian partners. Even then, substantial investments, equipment reconfiguration, and new supply chains would be necessary.

Parts and warranty

AVTOVAZ would handle warranties and after-sales service, along with spare parts supply. In Tolyatti a similar transition occurred with Renault, offering a practical precedent.

There are around 2.2 million Nissan cars in Russia, with roughly 500 thousand based in St. Petersburg. It may appear straightforward to sign documents, but logistics pose a real challenge: migrating databases and inventories and updating or rebuilding software. Renault and Nissan sharing common corporate structures helps, but the task remains complex.

First, the state must sign an agreement with Nissan. A deputy prime minister has indicated this would happen in November. Then Nissan would sign an agreement with AVTOVAZ to designate AVTOVAZ as the official distributor of spare parts in Russia. Only after that would the roughly 120 Nissan dealers sign service contracts with AVTOVAZ. This mirrors the Renault transition. The process takes time, and some dealers may show inconsistent behavior during the transition period.

Concerned customers should know that warranty vehicles still fall under protection. If a dealer encounters parts shortages or reimbursement issues, the consumer protection framework supports repair and replacement of defective items within the warranty period. The dealer’s responsibility is to deliver goods in good condition and manage repairs accordingly.

In practice, some dealers still have several thousand unsold Nissans. For customers dreaming of a Qashqai or X-Trail, there remains an opportunity to purchase before inventory is exhausted. Maintenance will continue, facilitated by the established network.

Who is next in the region?

Toyota has also announced the closure of its factory in the city’s northern area. After a six-month lull, the company reportedly could not find a path to resume full-scale activity.

The fate of Toyota’s presence remains unsettled. Options include seeking a buyer, likely among regional players, while the current climate slows new arrangements. The official dealer network will stay active for sales and maintenance, including gray-market imports of certain models and new SUVs that have yet to clear formal channels.

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