These automakers pulled out of Russia

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Automakers around the world have suffered from supply chain issues, which have forced them to cut production. Now the Russian invasion of Ukraine is causing more problems for automakers doing business in that part of the world. Some automakers are limiting their business activities in Russia, or even exiting the market altogether.

Russia is a small market for automobile sales. Only about 1.57 million new cars were sold in the country last year. There were also less than 2 million cars built in Russia in 2021. But Russia is a big market for Renault, Volkswagen and Hyundai. Each of them holds more than 10% of Russian car sales. All three companies also manufacture a significant number of cars in Russia.

Russia’s invasion of Ukraine and the global reaction to it has had an effect on automakers doing business in this region. Some of them have announced changes in their operations in Russia and Ukraine.

Related: How Western Sanctions Are Affecting Volkswagen, Stellantis and Renault Plants in Russia

Most car production in Russia has stopped


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Toyota

Toyota announced major changes to its operations in Russia and Ukraine in response to the ongoing conflict in that region.

Toyota already halted all sales activities in Ukraine on February 24. Now, the Japanese automaker has announced that production at its St. Petersburg plant will cease on March 4. This plant builds RAV4 and Camry models for sale in the Russian market. Toyota has already stopped importing cars to Russia due to supply chain issues.

Renault has suspended production at some of its assembly plants in Russia due to component shortages. French automaker Renault accounts for almost 40% of all vehicle production in Russia. Their factories in Russia include one in Moscow which builds the Kaptur, Duster, Arkana and Nissan Terrano. Renault also owns a majority stake in Russian automaker AvtoVAZ.

Related: Why Volkswagen Isn’t Bringing Skoda to the US

Russia is a big market for VW and Hyundai


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Skoda

South Korean automaker Hyundai Group produces 230,000 cars a year at a plant in St. Petersburg. This represents about 27% of the total vehicle production in Russia. Hyundai suspended production at the St. Petersburg plant from March 1-5 due to supply chain issues, but operations will resume next week.

Czech carmaker Skoda, part of the Volkswagen Group, continues to run operations in Russia, but factories in the Czech Republic have cut production in anticipation of lower demand for cars in Russia and Ukraine. Russia is the second biggest market for Skoda.


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