Carmakers in Russia increased production in February compared with the previous month despite Western sanctions and shortages of components.

Production amounted to 60,800 vehicles, up by 11.7% on-month and 12.8% year-on-year, Kallanish notes from national statistical service Rosstat data.

January-February production of passenger cars increased 12.8% on-year to 115,000 units.

Production of trucks in February amounted to 13,500 units, up 32.7% on-month and 4.8% on-year. In January-February, 22,400 trucks were produced, which is 20.1% less than a year earlier.

In January, the Avtotor car plant in Kaliningrad launched production of Chinese brands BAIC BJ60 SUV, and Russia’s main carmaker Avtovaz began producing LADA Vesta family cars with a six-speed manual transmission.

Avtovaz plans to allocate RUB 45 billion ($517.4 million) to an investment programme in 2025 for upgrading capacities and the model range in subsequent years (see Kallanish passim).

The company also said it is considering reducing its production plan for 2025 amid a sharp slowdown in the automotive market in November and December. The figure of 500,000 cars is the budget and production plan approved by the board of directors for 2025, but the company may adjust this.

Avtovaz said Russia’s market for passenger cars and light commercial vehicles could fall by up to a quarter in 2025 if Russia’s central bank's key rate continues to rise.

Russian demand for passenger cars and light commercial vehicles was seen reaching 1.7 million units in 2024. The firm predicted 1.3-1.4m units of sales in 2025, if interest rates rise further. That volume would be down 18-24% on-year.

Avtovaz also said it expects its share of the domestic automotive market to decrease after Russia’s surge in imports of Chinese cars observed since last September.

Russian market demand for heavy trucks with a gross weight of 14-40 tonnes may fall by almost a quarter in 2025 due to a decline in economic activity, according to truck-maker Kamaz.