Russia’s Auto Industry Faces Sharp Contraction in 2022
Recent analysis shows a severe downturn in Russia’s automobile sector during January through July 2022. Passenger car production reached 298.6 thousand units, reflecting a drop of 64.1 percent compared with the same period a year earlier. Shipments of finished vehicles to dealers followed a similar trend, totaling 296.1 thousand units, down 64.3 percent from the prior year. The data is provided by ASM-Holding, a firm that tracks automotive market developments.
Foreign brands suffered a similar collapse, with production falling 64.1 percent to 206.8 thousand cars. A list of factories where output has been reduced, suspended, or halted is shown below, illustrating the breadth of the shutdowns across the industry.
- Factories in St. Petersburg including Toyota Motor, Nissan Manufacturing Rus, and Hyundai Motor Manufacturing Rus
- Volkswagen Group Russia
- Renault Russia
- Renault contract assembly at AVTOVAZ
- Contract assembly of Volkswagen and Skoda at GAZ
- PSMA Russia
- Mazda Sollers Production Russia
- Mercedes-Benz Production Russia
- Ford Sollers Elabuga
- BMW production at the Avtotor plant
Domestic brands also faced significant reductions with production in the segment down by 64.0 percent. Output for local marques totaled 91.8 thousand units. The decline varied by brand and division, showing the pressures within the national carmakers across regions and facilities.
- AVTOVAZ in Tolyatti produced 56.2 percent less
- Lada Sport in Tolyatti saw a 46.0 percent drop
- Lada Izhevsk fell by 71.4 percent
- ChechenAuto experienced a 60.0 percent reduction
- UAZ production declined by 64.9 percent
Meanwhile Havale Motor Manufacturing Rus announced a rise in output, increasing production by 30.4 percent for January through July 2022 compared with the same period in 2021. This uptick contrasts with the broader decline and highlights how some segments or plants managed to adjust production levels despite overall market headwinds.
The mix of market shares remained largely unchanged despite the shipping and production shocks. Chinese brands continued to account for a substantial portion of Russia’s passenger car production, keeping their share in the total at about 69.3 percent for January through July 2022, mirroring the level seen in the previous year. This stability points to a shifting supplier landscape rather than a shift in consumer demand alone.
- In the most recent updates, Mazda and Toyota halted additional production in Russia, adding to the ongoing disruption within the sector
- Reports and coverage of these industry developments can be found on various distribution channels including streaming and video platforms
The overall pattern shows a challenging period for the Russian auto industry in early 2022, with sustained reductions across both foreign and domestic brands. The limited resilience observed in some plants underscores the uneven impact of sanctions, supply chain constraints, and changing consumer behavior. Industry observers continue to monitor how the market adapts as production schedules, exports, and domestic demand evolve through subsequent quarters.
This analysis reflects a snapshot of the automotive landscape during the first half of 2022 and should be considered in the context of broader economic and policy developments affecting the sector. The figures cited come from ASM-Holding and related market coverage as of mid-2022.