Renault expands the operational capacity of its Moscow plant

The French brand Renault inaugurated yesterday the second phase of its Moscow plant, in Avtoframos, in the presence of the company’s executives and the mayor of Moscow, Yuri Luzhkov. The plant was opened in 2005 following a substantial investment of more than €235 million and had an operational capacity of 60,000 cars a year.

This capacity is being increased by 100,000 units with a further investment of €135 million. In addition, it took advantage of the conference to launch the Renault Sandero in Russia, this model being the second to be produced at this Russian plant after the Logan, which is sold through Dacia.

Renault is the fifth best-selling brand in Russia with a 5% market share. Of the 70,000 units that Renault places on the market, more than 50,000 correspond to the Dacia Logan, so low cost in this country is the most profitable market niche for the brand.

The Russian market, despite the slump caused by the crisis, will recover, and given its immense population and its low car-per-inhabitant ratio (230 per 1,000 compared with 600 per 1,000 in Western Europe), it is a potentially healthy market. The growth in sales in Russia should take off as production costs fall and the number of cars sold increases.

Source | Renault