“Russia Revives Soviet-Era Car Brand at Former Renault Factory”

Russia has resumed car production at the former Renault factory, which had closed following the invasion of Ukraine. The facility, now under state control, will begin manufacturing vehicles again, with the first units expected to hit the market next month. The revived production will feature the Soviet-era Moskvich brand, though the vehicle’s design has been modernized.

Renault’s exit from Russia was part of a larger trend, as several major Western companies, including McDonald’s and Starbucks, withdrew from the country due to the ongoing conflict. The sanctions imposed on Russia have severely limited its access to foreign-made components, impacting domestic industries.

Truck manufacturer Kamaz, which signed an agreement to become the plant’s technological partner in July, is working closely with Chinese automaker JAC, according to reports. Although Kamaz has expressed plans to develop a base of Russian suppliers over time, production is expected to remain low in the early stages.

Kamaz expects to produce around 600 vehicles by the end of this year, with an ambitious target of ramping up to 100,000 cars annually by 2024. This will include electric vehicles, but production levels will still be far below those of a typical automobile plant.

Meanwhile, overall car production in Russia has taken a significant hit, with sales projected to fall below one million vehicles in 2025, marking a historical low for the country.