Russia is considering relaunching the Moskvich brand after Renault leaves the country

Victor Alós Yus    @sepelaci    18 May 2022     2 min.
Russia is considering relaunching the Moskvich brand after Renault leaves the country

The French manufacturer is leaving Russia, and the factories it leaves idle will be nationalised and used to relaunch a brand that disappeared in 2006.

Moskvich Modelo

Russia’s situation is quite complex. The international community is reacting to the war in Ukraine with strong sanctions and commercial and industrial measures that include withdrawing from business in the country. Renault is one of the brands that has stopped operating in Russia and has abandoned its facilities in the country. As a result, some of its plants have been nationalised and will be used to produce vehicles of 100% Russian origin.

The brand chosen is Moskvich, which in Russian means “native of Moscow“. It is a brand that already operated in the country for several years and will re-emerge with a new model currently in the design stage. The Moscow plant produced models of Ford since it started up almost 100 years ago, and later went on to produce Moskvich models. Production of this native brand ceased when Renault entered the market, and it has remained so until now.

Moskvich Rusia

The terms of Renault’s withdrawal

Renault has sold its shares in the plant to Moscow City Council for 1 euro, a symbolic sum. The shares of the manufacturer Avtotor have also been sold for the same amount to a Russian scientific institution. That said, the sale can be reversed within six years, so the doors are not closed for Renault in Russia.

The new Russian model

According to Sergei Tselikov, head of the analytical agency Autostat, at least two years and an investment of at least one billion euros will be needed to shape a new model. This first model will have an ICE engine, so electric mobility takes a back seat during this first design phase.

The main technology partner will be the truck manufacturer Kamaz. Moscow’s mayor, Sergei Sobyanin, has asked the Russian Ministry of Trade to source raw materials and parts from Russian manufacturers, in order to produce a fully domestic vehicle.

The partnership between Moscow City Council and Kamaz is being negotiated and could bear fruit in the coming weeks. The brand was extinguished in 2006 after going bankrupt. Today there are still around 200,000 Moskvich cars on the road, 45,000 of which are more than 35 years old.

It is a brand born under the Soviet umbrella, and like many other cars of that era, they were cheap, reliable and durable vehicles. The new models could follow that same principle, but updated for modern times.


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