What do we see today? Supply chains are breaking down. Foreign carmakers and suppliers which localized production here have either suspended operations, or are pulling out of Russia. Of course, this is negatively impacting production and capacity utilization. Due to supply chain disruptions, utilization will suffer a major drop in 2022. And although the fleet is large, it is also quite old... This decline in production and utilization will create a shortfall of 700,000–800,000 cars in 2022. Problems exist, but at the same time, the current situation presents a huge window of opportunity. It’s hard to image another situation in which the industry is provided such a big incentive and new impetus for development — Andrey Tomyshev, Partner, Advanced Manufacturing & Mobility Leader in Strategy and Transactions, B1 Group of Сompanies.
If we speak about a specific moment, we can say that we have indeed already passed the most acute phase of this crisis. After a long period of downtime, and after moving to a four‑day working week, AVTOVAZ managed to resume production in June of this year — Maxim Sokolov, President, AVTOVAZ.
The sanctions storm which the automotive industry is going through is completely unprecedented. The crises of 2009 and 2014 were fundamentally different. Those were merely about a contraction of the market due to a crisis of liquidity, devaluation, and a subsequent increase in car prices. Now we are facing a fundamental rethinking of the main economic growth model for the industry. For the past 15 years, the industry was built using international technology... Today, there are no players: some have left already, and others will do so soon in all likelihood. And we are faced with the challenge of building an entirely different industry capable of withstanding any issues related to external risks – not just economic ones, and probably not even economic in essence — Nikolay Sobolev, Chief Executive Officer, Sollers Auto.