The geographical structure of Russian automotive industry has changed

The geographical structure of Russian automotive industry has changed

Avtostat – The map of Russian automotive has shown a significant change within the course of six years (2008-2014). Factories established in the Volga region have lost their former significance. The region’s share in Russian automotive production has fallen from 71.3% in 2008 to 41.9% today. In contrast, the share of St. Petersburg and Kaliningrad has risen (from 9% to 32.3%).

Moscow-Kaluga is another cluster, which increased its share in total production sharply. The total share of the two regions has risen from 11.6% in 2008, to the current level of 21.6%. The shares of car production centres outside the aforementioned regions, such as: Taganrog, Cherkessk, Argun and Vladivostok are on the decline in total (from 8.1% to 4.2%).

The foreign investments made in recent years have played a great role in changing the geographical structure of Russian automotive. As one may remember, 1.5 million out of the 1.91 million automobiles manufactured in Russia in 2013 belonged to foreign brands. According to Avtostat’s prediction, the production number of foreign brand automobiles will have fallen by 50-100,000 and the total car production by 150-200,000 vehicles, by the end of the year.