Production of First Russian EV Passenger Car Postponed

News: Eurasia

2020-09-27

Production of First Russian EV Passenger Car Postponed

Zetta company has had to shift mass production of its Russian car “City Modul 1” until after 2020 because the Fund of Industry Development refused to provide credit of 99.9 million Rubles (about € 1.1 million).

Maxim Sakov
Maxim Sakov

According to the Fund opinion, the company has insufficient budget to start the production, even with the requested credit. “The company needs an investor, who will believe in market potential of the product, and will co-finance the project together with the fund. The fund is ready to consider application one more time as soon as such investor will be found,” the Fund said

“City Modul 1” would become first serial Russian electric car. Zetta plans to make the car on its own production site in Tolyatti; production capacity is 15,000 units per year.

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Western Auto OEMs Seek Privileges for LNG Trucks

Move is opposed by Russian KAMAZ which plans to make similar machines.

Maxim Sakov
Maxim Sakov

Market players have proposed canceling import taxes and utilization fees for commercial vehicles fueled by LNG until 2025. The target of the measure is the development of LNG-transport until the appearance of domestic analogs of such machinery.

The suggestion comes from foreign makers of LNG on-highway tractors and supported by Gazprom. Now, no imported vehicles are exempted from these taxes.

The import tax for on-highway tractors is 5% of their cost, and the utilization fee is 10 to 12K Euro. LNG tractor is more expensive than its diesel analog by about 35K Euro.

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2020-08-23

Expansion of “Amkodor-Onego” Plant Started

Currently construction at the plan includes rebuilding of warehouses and administrative buildings in preparation for installation of new crane equipment.

Maxim Sakov
Maxim Sakov

“Amkodor-Onego” LLC was established by Belarus holding “Amkodor” in 2019 following the bankruptcy if the “Onego Tractor Plant”. The plant needed an investor, and “Amkodor” stepped up. “Amkodor” is going to create a site for assembly, and then – for import substituting full cycle production of forestry machines – harvesters, forwarders, etc.

An investment contract was signed in June 2019. Under the contract, full modernization of the warehouses and major overhaul of the buildings are planned. Total cost of the project is estimated by US$ 220 million. The government of Karelia (Russian region) assumed the priority of the project and established several requirements.

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BMW Production Plant Scheduled for Kaliningrad

Maxim Sakov
Maxim Sakov

The launch of new plant with full production capabilities for BMW SUVs is planned for July 2021. According to Kaliningrad officials, the new plant is one of the most important investment projects in the regional processing industry. Autotor holding makes up a significant part of the regional production.

Officials said the enterprise is one of the largest employers and taxpayers in Kaliningrad region. Construction of the plant building is underway, and machinery installation will be started in January 2021. The first car is expected to be produced in July 2021.

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Production of Mercedes-Benz Actros Planned at KAMAZ Plant

Maxim Sakov
Maxim Sakov

Russian production of the clean on-road Mercedes-Benz Actros will start in November at the KAMAZ Naberezhnye Chelny plant. The new truck is being modified by Mercedes to meet Euro-6 standards. At the same time, German engineers are reworking the process of exhaust gases neutralization.

Russian production of Actros will allow Russian fleet-owners to purchase top-quality trucks without extra customs fees. The price and initial availability have not been disclosed.     Read The Article

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2020-07-26

Russian Government To Pay 60% of Expenses for Switching Vehicles to NG

The Russian government subsidies now will cover 60% of individuals’ and small business’ expenses for switching vehicles from gasoline to NG fuel. That’s up from 30%.

Maxim Sakov
Maxim Sakov

The minister of Power Industry has offered to increase subsidies for switching vehicles belonging to individuals and small business two times – from 30% to 60%. Another 30% will be paid by Gazprom at the expenses of its marketing program. Therefore, vehicle owners should pay only 10% of the cost to switch.

The government will assign US$ 0.7 billion (50 billion Rubles) for development of the NG fuel industry during the period 2020-2024. This includes an annual assignment of 3.5 billion rubles for gas fuel stations and 0.7 billion rubles for fleet modification.

There are 484 gas stations in Russia (May 2020), 329 of them belong to Gazprom. In 2019, the fuel sales on gas stations increased 30%.     Read The Article

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New Restrictions for Import of Right-Wheel Engines to Russia Launched

New restrictions for imports of right-wheel engines to Russia became effective July 1. Completely barred from import are machines of the M2 and M3 class – trucks, buses, LCVs and construction machines.

Maxim Sakov
Maxim Sakov

On top of this, the procedure of Custom’s clearance of right-wheel passenger cars became more complicated. The owner of such car should obtain technical certificate, confirming compliance of car design to the safety requirement.

According to the Federal Customs Service, the amount of payments will depend on ecological class, production date, engine volume and other parameters. This will include processing fee, custom’s tax and utilization fee.      Read The Article

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Hyundai Plant Can Produce 300,000 Car Engines Annually

Hyundai VIA has begun construction on an auto engine plant near St. Petersburg.

Maxim Sakov
Maxim Sakov

The enterprise initially plans to make 240,000 engines per year. Then, the capacity will increase, and the plant will make 300,000 Gamma I engines of 1.6 liters.

The project has been established under a special investment contract. The investors “injected” US$185 million  (13.1 billion Rubles) into the project. The plant will bring about 500 jobs to the city.

Test launch of the plant is planned in Q1 2021, and mass production is scheduled to start in October 2021.     Read The Article

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2020-06-29

Kamaz Introduces First Mining Truck

KAMAZ says it has developed and built KAMAZ 65805 – first truck in its new mining truck portfolio. The product line will consist of dump trucks with wheel formula 8*4 and 10*6 and cargo capacity from 45 to 70 tons. The dimensions of the new truck will allow driving on regular automobile roads.

Read The Article

The new KAMAZ is powered by a 12-liter inline KAMAZ R-6 engine of 500 hp, and hydromechanical transmission with retarder.

The truck is introduced as “Autonomous ready,” and can be converted to a driverless vehicle by installing sensors and a decision-making chip.

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Autotor Plant To Suspend Assembly of BMW Cars

Autotor’s Kaliningrad plant plans to suspend assembly of BMW cars from the middle of June to the beginning of July because of a components shortage. This is told by CEO of the plant Ruslan Sadykov.

Stephen Teichert, head of BMW Russia, claims Autotor production capacity has been reduced by about 70%; however, in July the OEM plans to increase production to pre-COVID-19 level.     Read The Article

PSR Analysis: The Autotor plant in Russia assembles passenger cars kits for BMW, Hyundai and Kia, and trucks for Hyundai, Daewoo, and Ford. Currently, the problems are claimed only for BMW components. The supply chain problems have been caused by COVID-19 lockdowns. PSR

Maxim Sakov Is Market Consultant, Russia, for Power Systems Research