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Dennis Manturov, Russia's deputy prime minister and minister of industry and trade, said on the eve of the St. Petersburg international economic forum that Japan's Toyota assets in Russia, including its plant in St. Petersburg, were sold to the Russian Automotive and Automotive engine Research Institute (NAMI), the Russian satellite news agency reported.

It is understood that Toyota announced in September 2022 that it would permanently terminate its car manufacturing business at its St. Petersburg plant in Russia. Toyota said the decision to stop production in Russia was not easy and that it had been looking for a suitable solution, but the St. Petersburg plant ceased operations in March 2022 because it was unable to procure parts. After that, Toyota Russia Co., Ltd. continued to prepare for resumption of work, such as daily maintenance of the production line. However, even after half a year, production could not be resumed, so it had no choice but to announce the termination of production activities in Russia. Toyota said the St. Petersburg plant in Russia would start a production closure process and planned to provide maximum support to local employees, while its Moscow office would be downsized and restructured to maintain the services of Russian Toyota and Lexus owners.

It is understood that Toyota's St. Petersburg plant in Russia laid the foundation in 2005 and officially put into production in 2007. Russian President Putin also attended the groundbreaking ceremony. The factory mainly produces RAV4 and Camry models. Toyota said in a statement on its website on March 3 that it would suspend production at its St. Petersburg plant in Russia from March 4, while Toyota's car imports in Russia have been halted due to supply chain disruptions.

Toyota is the first Japanese carmaker to announce its withdrawal from Russia. Nissan, Mazda and Mitsubishi have also stopped production at their factories in Russia, but only Toyota has announced its withdrawal from Russia. It is worth mentioning that Toyota's market share in Russia is much higher than that of other Japanese brands. According to the data, Toyota's sales in Russia increased by 6.9% to 97941 vehicles in 2021 compared with the same period last year, second only to Lada (350741), Kia (205801), Hyundai (167331) and Renault (131552). Nissan, another Japanese brand in the top 10, sold 51338 vehicles in Russia in 2021.

The Toyota plant in St. Petersburg has been transferred to the Russian Central Institute of Automotive and Automotive engine Science (NAMI), a single state company in the Russian Federation, according to a statement issued by the Russian Ministry of Industry and Trade on March 31. The agreement means a complete transfer of ownership of factory buildings, equipment and land. Russian state-owned diamond Antai (Almaz-Antey) may start producing electric cars at its former Toyota plant in St. Petersburg, Russian Industry and Trade Minister Manturov said on April 12.

After the conflict between Russia and Ukraine, many car companies, including the United States, Germany, Japan, France and other countries, have announced restrictions on Russian car production and export, which directly led to an avalanche of Russian car sales. At the same time, this has also brought a huge negative impact on the Russian economy, and many car companies have no choice but to suspend production.

As overseas brands lose competition in Russia, Chinese car brands have significantly increased their share of the Russian car market. According to the Russian Avtostat agency, 72171 light vehicles were sold in Russia in May. Six of the top 10 best-selling brands are Chinese brands, namely Chery, Harvard, Geely, Xingtu, Oomunda and Changan, which account for about 40 per cent of Russian sales. However, at present, the conflict between Russia and Ukraine has expanded, and it is difficult for the Russian car market to recover in the short term.

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