Tag: russian federation

Localisation hopes fade for Russia as it struggles to attract China

Russia’s efforts to boost domestic vehicle production by courting Chinese automakers are running into obstacles, from economic volatility to strategic caution among OEMs. As Russian policymakers push new incentives, analysts warn that structural challenges could undermine the country’s localisation ambitions.

Ukraine agrees to preliminary agreement to provide US with 50% of critical mineral revenue

Despite an unfavourable clash at the White House last Friday, Ukraine remains open to a framework agreement with the US to provide 50% of revenue from critical mineral deposits and relevant infrastructure in exchange for continued support and security guarantees in its war with Russia.

Latest ECG business intelligence report shows increase in global vehicle exports but slight decline in EVs to EU

The Association of European Vehicle Logistics (ECG) reports there has been 25% increase in global vehicle exports from China but EU has imported fewer EVs in first nine months of 2024

China trade crisis leaves Russia’s spare parts market in turmoil

Car drivers in Russia are waiting longer for their cars to be repaired, with delays stretching up to six months because of a crippling shortage of spare parts.

Russia faces a shortage of Chinese automotive imports as sanctions intensify

Until recently, Chinese automotive exports to Russia continued to grow. During the first half of 2024, light passenger vehicle exports from China jumped by 35.4% and were valued at $6.2 billion, according to China’s General Administration of Customs. Imports of trucks dropped by 24% to $1.3 billion, though this was not enough to undermine the overall positive trend in vehicle trade.

Chinese finished vehicle exports to Russia in jeopardy

Rosteс, the parent company of Russia’s leading automaker Avtovaz, wants government authorities to limit the flow of Chinese finished vehicles into the country. The request follows a number of tariff measures taken by western nations, including Europe and the US, to tackle subsidised imports specific to electric vehicles.

Red Sea crisis resurrects China-Europe rail freight transit through Russia

The ongoing Houthi attacks in the Red Sea have given the transit of automotive freight from China to Europe a second breath, according to state-run railway monopoly, Russian Railways (RZD)

Russia cracks down on parallel imports through EEU

Dozens of logistics companies across Central Asia and the Caucasus engaged in parallel imports of finished vehicles into Russia are expected to go bankrupt in the next few months following intervention by authorities to bring the industry in order. The new rules could also hamper the import of Chinese-made vehicles to Russia.

Mercedes-Benz Group cuts ties with Kamaz in Russia

Mercedes-Benz Group has sold its remaining 15% stake in Russian commercial vehicle maker Kamaz. A spokesperson for the carmaker said that the necessary regulatory approvals had been granted and contractual agreements implemented.

Avtovaz looks for ro-ro capacity to strengthen vehicle exports

Russian carmaker Avtovaz is looking to boost production through exports abroad in 2024, including target markets in Iran and Egypt, according to the carmaker’s president, Maxim Sokolov. It follows a two-year decline in foreign sales. Russian cargo carrier, Fesco said it would support the carmaker’s export plans with a specialised fleet of car-carrying vessels, which is subject to Avtovaz receiving a concrete export order.

Capacity and driver shortages push up logistics costs in Russia

Soaring logistics costs have pushed Russia’s leading carmakers, Avtovaz and UAZ, to jack up the sales price of their vehicles.

Containerised vehicle deliveries by rail from China to Russia are on the rise

During the first nine months of 2023, Russia imported 414,000 finished vehicles, 250% up compared with the previous year, with 97% of deliveries coming from China, according to estimates from the Federal Customs Service. That compares to 2022, when China exported 117,000 finished vehicles to Russia.

Russian carmakers braced for turbulence as US sanctions promise to bite

A recent round of US sanctions against the Russian automotive industry threatens to hurt the supply chain contingencies established in the country since it invaded Ukraine.

Chinese vehicle exports keep Russian vehicle logistics afloat at sea – and by rail

Russia has become the top destination for Chinese vehicle exports, rising almost 500% year-on-year. But vehicle logistics modes, cost and capacity are a challenge, leading to new delivery methods, including cars in containers.

Former VW plant in Russia reported to be acquired, assemble kits from Chery

A former Volkswagen plant in Kaluga, western Russia, is reported to be negotiating plans to assemble kits from China’s Chery

Meilin Auto unveils plans to begin sales to Russia

Meilin Auto has become the first automotive dealer outside the Commonwealth of Independent States (CIS) to register a subsidiary on the Russian market and begin vehicle sales to local customers.

Weathering the storm from the east

The ongoing war in Ukraine is having detrimental repercussions for both inbound and finished vehicle logistics in central and eastern Europe. There is uncertainty in the supply of critical materials and disruption to transport routes in Europe are delaying deliveries of vehicles

Chinese automakers surge amid western withdrawal from Russian market

Delegates at last week’s Spring Congress of the Association of European Vehicle Logistics (ECG) heard that China’s vehicle exports surged in the first quarter of 2023, as global demand for electric vehicles helped spur a strong start to the year.

Turkey suspends automotive re-export to Russia

On March 8, the Turkish Customs Service suspended transit of western-sanctioned goods to Russia, including finished vehicles and automotive components.

A Russian market close to catastrophe

With grey imports on the rise and natural disasters adding to the limiting effects of international sanctions, any optimism about re-establishing Russian supply chains may be eclipsed by further harsh realities

Avtovaz looks for more capacity despite supply disruption

Russia’s largest carmaker, Avtovaz, has said it will take over the former Nissan plant in St Petersburg and put it back into operation in 2023. Nissan pulled out of St Petersburg shortly after Russia’s invasion of Ukraine last year.

Vehicle imports to Russia increase despite legal grey zone

Despite a looming threat of criminal liability for parties involved, complicated logistics movements have seen European finished vehicle imports to Russia increase, after falling off sharply following sanctions. Russian logistics companies are using third parties to move vehicles from Europe, through Iran and across the Caspian Sea into Russia.

Russian carmakers begin CKD assembly from Chinese imports

Russian carmakers are making efforts to resume production at plants in Kaliningrad and Moscow from complete knockdown kits (CKDs) imported from China.

Ukraine war to shake up car making in the post-Soviet space

Uzbekistan and Kazakhstan could take advantage of the mass exodus of western vehicle makers and components suppliers from Russia, attracting new investments and ramping up production, according to research from Moscow-based thinktank PromRating.

Russia pins hopes on electric future as carmakers continue exodus

Russia is hoping to salvage its automotive sector by pumping billions in investment into electric vehicle (EV) production, rather than trying to rescue production of combustion-engine vehicles at the car plants left redundant by western carmakers who are leaving the country en masse.

Russian ban on European haulage will inflate logistics costs

The Russian government has greenlit an executive order banning European Union haulage trucks from crossing borders into Russia’s territory. Though actively lobbied by several Russian business groups during the past few months, this step promises to further increase logistics costs and hamper the remaining automotive trade.

Russia invests in plan for independent automotive market

Vladimir Putin has instructed the Russian government to develop a long-term programme for its automotive industry that will make it largely independent of technology provided by the West. The Russian Industry and Trade ministry is now looking for trillions of roubles from the federal budget to set that up.

Maersk pulls out of Russian terminal business and looks to Malaysia

APM Terminals (APMT), which is owned by AP Moller-Maersk, is pulling its business out of Russia, with the divestment of its 30.75% share in Global Ports Investments (GPI), Russia’s biggest container terminal operator.

Charting a course to bypass Russia

Carmakers have been looking for alternative routes to deliver finished vehicles and automotive parts between Europe and China since the latter invaded Ukraine. Prior to that, Russia was the preferred route for shipping cargo between the two regions because of the lower costs and lower number of customs checkpoints.

Threadbare trade on the Silk Road

The war in Ukraine and subsequent sanctions on Russia have hit container shipments by rail between Europe and China, with repercussions for automotive supply and the further complications for ocean freight

Ukraine struggles to restart auto production and supply

Vehicle assembly has resumed in Ukraine and sales show signs of recovery but the ongoing Russian hostilities in the country continue to threaten production and supply, with the production of key materials and components severely constrained.

VW pulling out of production at Nizhny Novgorod

Volkswagen Group is permanently pulling out of contract production at the Nizhny Novgorod plant in Russia where it assembles VW and Skoda brand vehicles with Russian carmaker Gaz. It ends an agreement that was first signed in 2011 and was due to run, under its contract renewal, until at least 2025.

Europe scrambles for palladium as Russia threatens supply

European carmakers have increased palladium imports from Russia despite the current logistics challenges because of fears supplies could be further restricted. The move follows threats by Russian officials to restrict exports to the West and trade the metal exclusively in roubles.

Russia struggles to revive Soviet brands because of parts shortages

In the wake of a mass exodus of Western carmakers from Russia following the invasion of Ukraine, the country plans to revive the production of two Soviet car brands, the Volga and Pobeda, according to Russian Industry and Trade Minister, Denis Manturov.

Russia struggles to repair its broken supply chain

In a bid to save what is left of its automotive industry, Russia is taking measures to establish new supply chains and logistics networks following the breakdown caused by the international sanctions applied in the wake of the Ukraine war.

Automotive logistics in Russia is in tatters

Already debilitated by the impact of Covid, the Russian automotive market was hoping for better times ahead, but the invasion of Ukraine and the consequent sanctions imposed on Russia have undermined production and sales, and hit the logistics providers hard

Ukraine’s vital link in the European supply chain

The shutdown of much industry, trade and logistics out of Ukraine is hurting automotive production and driving up logistics and bunker costs for European logistics providers.

Russia’s invasion of Ukraine is a long-term risk for the automotive supply chain

The impacts stretch beyond inflation and corporate retreats to critical shortages upstream for semiconductor and EV supply.

Blog: Conflict in Ukraine disrupts auto supply in Europe and Russia

Read rolling updates on the developing situation in Ukraine, wider Europe and Russia as it impacts the global automotive supply chain

Ukraine invasion causes widespread supply chain disruption

Russia’s military invasion of Ukraine has already had widespread repercussions across Europe’s automotive supply chain and supporting multimodal logistics network.

Ukraine border tension threatens automotive supply chain

An escalation of the conflict between Russia and Ukraine promises to partly disrupt supply schemes in Eastern Europe, wreak havoc on new vehicle production in the post-Soviet space and even cause a global shortage of some automotive components. Vladislav Vorotnikov reports

Bo Andersson takes up new role with Uzbek carmaker Avtosanoat

Following his departure from tier-one supplier Yazaki in April this year, Bo Andersson (pictured) has taken up a new position with Uzbek state-owned vehicle maker Uzavtosanoat as CEO of its two main subsidiaries – Uzavto Motors and Uzavto Motors Powertrain.

Nicolas Maure to take CEO role at Renault Russia

Nicolas Maure (pictured) will take over as CEO of Groupe Renault operations in Russia and the Commonwealth of Independent States (CIS) from the beginning of May this year. The role is newly created as Renault moves from appointing chairmen of different regions to assigning CEOs of brands within them. Maure will report to Groupe Renault CEO, Luca de Meo.

Electric vehicles supporting sales through pandemic, says head of Gefco Russia

Electric vehicles (EVs) and hybrids will drive the growth in global sales until the Covid-19 pandemic is over, according to Valeria Seledkova, general director of Gefco in Russia.

Chinese carmaker Haval signs a major investment contract in Russia

Great Wall Motor’s subsidiary, Haval, has become the first Chinese carmaker to sign a special investment contract with the Russian Industry and Trade Ministry. Under the agreement, Haval will invest 42.4 billion rubles ($650m) to expand the car plant it opened in Uzlovaya last year and build a components plant to localise the supply of core parts, including engines, transmissions, electronic control modules, and vehicle control systems.

DP World to take majority stake in Unico Logistics

Russian car industry needs greater parts localisation to survive

WWO diversifies to mitigate impact of Covid-19 on Russian vehicle imports

Russia spending billions to bolster car market

Changjiu moves Volvo S90 through Suifenhe Railway Port

Russian car industry caught between coronavirus and currency fluctuations

Russia: still supporting exports

As its domestic market stagnates, Russia continues to seek growth abroad and is subsidising the export of vehicles and parts – at a cost of more than $60m a year

Chevrolet returns to the Russian market via Uzbekistan

Water woes: how European river transport projects have ground to a halt

Inland waterways can provide a more sustainable option than road or rail. But recent attempts to develop this mode across Europe have shown that it’s far from plain sailing

BMW plans for local assembly in Russia hit a dead end

Russia to tie vehicle utilisation fee to local production

Fresh floes: What does the Northern Sea Route mean for automotive logistics?

Arctic waters warmed by climate change promise a fast new route for cargo transport. Automotive Logistics looks at its potential for flows of automotive parts and vehicles

Gaz launches assembly in Vietnam as US sanctions are postponed

Stretching to the limit: How Sollers and Lorus move finished vehicles across Russia

Operating across the largest country in the world – Russia – would be a challenge for any logistics operation, even without economic difficulties. OEM Sollers decided to distribute its finished vehicles in partnership with 4PL Lorus SCM

Gaz cutting shifts in face of US sanctions and worsening Russian LCV market

Avtovaz makes changes to senior supply chain management

Russia takes a slice of the new Silk Road

As vehicle shipments increase on overland routes between Europe and China, Russian companies such as state-owned RZD are aiming to capitalise on the new business

Q&A with Olga Stepanova, sales director of RZD Logistics

Russian companies are aiming to capitalise on increasing finished vehicle volumes on overland routes between Europe and China. A senior executive at state-owned Russian Railways discusses the development of a new Silk Road between the two regions

Ford to end passenger car production in Russia

Volvo on track from China to Belgium with ARS Altmann and ICL

Russia confirms Khrabrovo as location for BMW plant in Kaliningrad

ARS Altmann and ICL on track to China

Mosolf to ship cars by rail between Poland and China

Mazda left without logistics subsidies in Russia

Vinturas backing blockchain for supply chain visibility

A special case: how Russia hopes to boost local production with investment contracts

Russia is attempting to boost tier supplier capacity via contracts with OEMs and logistics subsidies for parts makers, but it is unclear how successful this will be

Ceva block train on track from China to Europe

OEMs push Russia to pay promised subsidies

A group of carmakers in Russia has asked the government to pay the outbound logistics subsidies it promised for finished vehicles and automotive components delivered to foreign markets in 2018.

Putin promises to help VW with special contracts and state support

Russia to set up parts cluster near EU border

Russia scrambles to find replacements as Ford exits passenger market

Containerisation: Why finished vehicle logistics needs to think inside the box

While ro-ro is the traditional method of shipping finished vehicles, containerisation is becoming increasingly viable as the automotive industry decentralises and introduces more EVs. Growth in China and South East Asia offers particularly good opportunities

GM Uzbekistan sets plant up in Kazakhstan

VW plans to expand output in Russia

Russian vehicle imports hit a bump in the road

Russian exports rise but subsidies in doubt

Nissan plans to expand output in Russia

Mercedes van assembly frozen at Gaz Group plant

Renault plans home delivery for online sales in Russia

Turkish exports bolster falling domestic sales

Ford reviews joint venture with Sollers in Russia

US considers lifting sanctions against Gaz

Progress for all to CEE

Russia keeps logistics subsidy in place

Ukraine sanctions risk Russian vehicle exports

Russia continues to increase finished vehicle imports

Russia increases component exports

GM poised to sell St Petersburg plant

Rewriting the rules

Gaz could be sold to VW to avoid US sanctions

Russian carmakers appeal for a stop to state aid

Mazda opens new engine plant in Russia

Gaz feels the sting of US sanctions

Russians drop US dollar for components purchases

EEU cuts import duties but trade within bloc is in dispute

GM Uzbekistan suspends vehicle sales over pricing

VW hit by industrial action in Russia

Russia's car exports fail to meet forecasts

EEU hits vehicle makers with revised rates

Russia seeks to subsidise cost of parts imports

Russia's fresh focus on exports

Russian carriers alarmed over rising fuel prices

Russia on its way to join the global automotive trade war

World Cup better than expected for logistics

Russian VAT hike to hit domestic car industry

Turkish exports continue to rise

New Russian association to encourage a slicker supply chain

Vehicle imports to Russia increase in the first quarter

Gefco: Full of get up and go

Russia ends era of industrial agreements

Russia: Recovery still down the road

Russia moves to boost domestic EV market

Gaz Group faces halt in assembly

Trump sanctions leave Gaz exports in doubt

Russia to halt parts imports during Fifa World Cup