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 2016, 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, nearly 3 million employees are provided with jobs in allied industries related to material manufacture, vehicle operation, maintenance and repair.

In 2016, OAR member companies manufactured 737.5 thousand motor vehicles, that corresponds to 58.4% of their total output in the countries of the Eurasian Economic Union (EAEU). This includes 579.2 thousand passenger cars (53.1% of their output in EAEU countries); 98.1 thousand light commercial vehicles (91.6% of their output in EAEU); 48.9 thousand trucks (94.4% of their output in EAEU); 11.3 thousand buses and coaches (93.3% of their output in EAEU), as well as 509.3 thousand automotive engines (84.4% of engine production in EAEU).

The automobile market in Russia faced a continuous decline of sales and local production in 2016 due to economic downturn in the country. However, beginning from Q2, the total rate of decline in the automotive industry slowed down, while the commercial vehicle sector (LCVs, trucks, buses) even showed signs of growth. Both domestic and foreign companies produced locally in total 1.30 million motor vehicles in 2016, and new motor vehicle sales in Russia amounted to 1.51 million units in 2016.

The total motor vehicle fleet in Russia accounts more than 50 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.