Russia Reproduces Old Car Brand with Chinese Design

Russia has re-launched the production of its Soviet-era car brand Moskvich after a two decade pause at a plant near Moscow given up by the French automaker Renault. The new model has a model Chinese design and looks identical to Sehol X4 compact crossover manufactured by China’s JAC. JAC’s design, engineering and platform are being used for Russia’s new car and the vehicles shown at the launch had JAC stickers on some parts.

The Moscow plant is reluctant to confirm that JAC is a partner.

“We have (Russian truck maker) Kamaz as an external partner and we have a long-distance partner we are working with,” the company said without naming that partner.

The Moskvich manufacturer also said the cars would have ABS systems, which have been forced to remove from Russian automaker Avtovaz’s Lada models because of Western sanctions imposed in response to Russia’s invasion of Ukraine.

Russia had sold its majority stake in Avtovaz back in May to the Russian state for one rouble, but placed a buy-option on the agreement within six years. The French automaker also sold its plant, now renamed the Moscow Automobile Factory Moskvich, for another rouble.

With just 600 vehicles slated for production this year, the new car is unlikely to alter the gloomy outlook for the wider industry, the annual sales of which could end the year below 1 million for the first time in Russia’s modern history.

The government’s ultimate target of producing 100,000 Moskvich vehicles a year, some of which will be electric, is far below the industry average for a car plant of 200,000-300,000.

“The first Moskvich cars will come off the production line in December 2022,” Kamaz said in a statement.

Because of Western sanctions on Russia, the country’s automotive industry has been hampered by both the exit of Western companies and difficulty to access foreign-made components.

“The task for the near future is to establish small-node assembly processes with the involvement of local suppliers by the end of 2023,” Industry and Trade Minister Manturov said in a statement.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Despite Opening German Subsidiary, Nord Stream 2 Certification Still on Hold

Nord Stream 2 pipeline operator said it completed part of the German regulatory requirements by opening a subsidiary in Germany. Despite the announcement, the certification process is still kept on pause. Nord Stream 2 said the subsidiary will be located in the German city of Schwerin  and will own and operate the 54km part of the pipeline located in German territorial waters.   

Chinese Regulator Fines Weibo, Continues Crackdown on Social Media Companies

The Cyberspace Administration of China (CAC), the country’s internet regulator, has fined social media platform Weibo with 3 million yuan ($470,000) for publishing illegal information. The regulator said the social media platform violated a cybersecurity law on the protection of minors. 

Xi Set to Kick Off Historic Communist Party Congress on Sunday

Chinese President Xi is set to take stage to open a historic Communist Party Congress on Sunday, where he is poised to win a third leadership term that will engrave his name to the country’s history as the most powerful ruler since Mao. Despite being a historic one, the congress comes at a tumultuous time for China, with Xi’s zero-COVID policy hampering the economy, and his support for Putin has seen China move further away from the West. The week-long congress will be attended by around 2,300 delegates and will take place mostly behind closed doors at the Great Hall of the People on Tiananmen Square. 

Stay informed

error: This content is protected !!