Russia’s new-car market is rebounding from a four-year slump. In 2017, sales rose 12 percent to 1.56 million vehicles, according to data from the Association of European Businesses (AEB) lobby group.
BMW announced that the decision about investment in local production facilities in Russia will be taken in few months. “Our business is very volatile. When one market shrinks in Europe, you look at where else there are growth opportunities,” BMW CEO Krueger told reporters.
Volvo Cars will decide by the end of the year whether to build a plant in Russia anticipating the rapidly improving sales in the country, the market’s overall recovery and its potential for further growth. “The logic of the auto business is to locate production in growing markets,” says Michael Malmsten, head of Volvo Car Russia. “Therefore, Volvo is exploring the possibility of the establishment of Russian production”.
Germany’s Daimler already began construction of a new plant ( investment of 250 million euros) near Moscow in summer 2017. The production of E-class sedan should start in 2019.