About Russian Automotive Industry

The automotive industry in Russia is one of the leading sectors of the national economy; it contributed near one percent to the country’s GDP in 2018, while its share in all engineering industries’ contribution amounted to nearly 40%. The automotive industry plays an important role in creation of new jobs. With 320 thousand people employed directly in that industry, above 3.5 million employees are provided with jobs in allied industries related to material manufacture, vehicle operation, maintenance and repair.

In 2018, OAR member companies manufactured 1,068.4 thousand motor vehicles, that corresponds to 58.6% of their total output in the countries of the Eurasian Economic Union (EAEU). This includes 879.5 thousand passenger cars (54.8% of their output in EAEU countries); 108.7 thousand light commercial vehicles (82.5% of their output in EAEU); 66.4 thousand trucks (93.1% of their output in EAEU); 13.8 thousand buses and coaches (92.6% of their output in EAEU), as well as 650.0 thousand automotive engines (81.2% of engine production in EAEU).

A long-lasting recession on the automobile market in Russia bottomed out by 2017, and the market returned to the growth zone. In 2018, both domestic and foreign companies operating in Russia produced locally in total 1.77 million motor vehicles showing a 14% growth, and new motor vehicle sales in Russia (as per registration data) amounted to 1.82 million units, up 11% as compared to 2017.

The total motor vehicle fleet in Russia accounts more than 54 million passenger cars, trucks and buses. However, more than half of the fleet is taken by vehicles being in use for over 10 years, which is a major reason of environmental pollution; they have low fuel efficiency, insufficient active and passive safety levels.

The task of primary importance set by automobile manufacturers in Russia is renovation of the existing motor vehicle fleet by way of production and putting in operation of ecologically pure, energy efficient and safe vehicles.