The former Mercedes-Benz factory located in the Moscow region is set to build vehicles under a Chinese brand, a plan reported by Kommersant and referenced by Avtodom. This development marks another step in the integration of international automotive players within Russia’s evolving market landscape, as well as the strategic role of regional manufacturing hubs in the broader supply chain.
The most straightforward arrangement under consideration is contract assembly for the brand. Avtodom’s leadership describes a model in which components are sourced from China, the assembled vehicles are completed on site, and the finished cars are handed over to a distributor for sale. This approach emphasizes a lean production footprint, leveraging existing facilities while keeping logistics and inventory management streamlined for rapid market entry and scale.
At the same time, Avtodom has not publicly disclosed the identity of the partner responsible for the brand or the suppliers that would provide modules and parts for the assembly process. The statement leaves room for further announcements and clarifications as negotiations progress, underscoring the sensitivity and complexity of forming cross-border supply agreements in the current market climate.
The Mercedes-Benz plant resides in the Esipovo industrial park in the Moscow region and began operations in the spring of 2019. Its stated capacity is aimed at producing roughly 25,000 to 30,000 cars per year in full production mode, a figure that reflects the facility’s potential to support regional demand while contributing to the broader manufacturing ecosystem in Russia.
Avtodom, a prominent dealer holding, became the owner of the Mercedes-Benz automobile plant in Russia in April 2023. The sale price and other financial terms were not disclosed at the time of acquisition, and the German automaker retains an option to repurchase shares under the terms of the arrangement. This backstop option indicates a continuing strategic flexibility for both parties as market conditions evolve and as the plant potentially pivots toward new brand collaborations and production lines.
Earlier coverage noted prevailing trends in the Russian automotive market, including the rising average price of new cars. Reports indicate that the typical price point has climbed to approximately 3.7 million rubles, reflecting shifts in consumer demand, procurement costs, and the ongoing impact of supply chain dynamics on pricing for new vehicles in the region.