News Room - Steel Industry

Posted on 08 Mar 2022

Half of Russian car production halts

As of 5 March, only 55% of the production capacity for the production of passenger cars and light commercial vehicles continued to operate in Russia, Kallanish learns from Russian analytical agency Autostat.

The total capacity of the Russian automotive industry allows the production of about 2.7 million units per year, but in 2021, car factories could not meet demand due to a shortage of semiconductors. 

However, the Russian auto industry last year showed a positive result for the first time after two years of decline. Thus, according to Rosstat, 1.4 million cars rolled off Russian conveyors, up by 8.2% on-year.

“Soon Russia will face a complete halt in automotive production for a number of reasons - sanctions, logistics, lack of components,” concludes Autostat’s executive director Sergey Udalov.

The duration of downtime will depend on the duration of the war in Ukraine and how quickly Russia adapts to new realities, he adds. Stocks of spare parts for the automotive industry in Russia will last for 1-2 weeks, after which there will be a shortage in the country, Autostat said earlier.

Stellantis has not stopped production of cars at its plant in the Kaluga region due to the Russain-Ukrainian war, but does not rule out forced downtime due to interruptions in the supply of components. This was stated in an interview with CNN Business by Stellantis ceo Carlos Tavares, adding that - to date - the company has had no problems with components and spare parts.

“Most of the suppliers are located in southern Europe and northern Africa, and disruptions have been avoided so far, but it can still happen due to global supply chain disruptions,” says Tavares. “Stellantis will comply with any sanctions that may be associated with its business.”

The main production asset of the Stellantis group in Russia is the PSMA Rus plant in the Kaluga region, the capacity of which is 125,000 vehicles per year.

Russian carmaker AVTOVAZ again stopped production from 5 March to 9 March in Tolyatti and Izhevsk due to the lack of components and semiconductors.

Source:Kallanish