Japanese car maker Toyota’s St. Petersburg plant in Russia may be transferred to the Russian state entity NAMI, according to Russian Industry and Trade Minister Denis Manturov. The announcement was made on Thursday during a business congress and was reported by state-run TASS news agency. The move is part of Russia’s efforts to increase domestic production and gain more control over foreign investments in the country.
NAMI, which stands for Central Automobile and Engine Research and Development Institute, has already acquired plants from Renault and Nissan in the past. The possible acquisition of Toyota’s plant in St. Petersburg would add to NAMI’s growing portfolio and increase its role in the Russian automotive industry.
According to a spokesperson for Toyota, the carmaker is still considering its options regarding the plant’s future. The company had already decided last year to end vehicle production in Russia after suspending production in St. Petersburg in March 2020. This decision was made due to the interruption in supplies of key materials and parts, as well as the decline in demand for cars amid the COVID-19 pandemic.
Toyota’s plant in St. Petersburg opened in 2007 and has been producing the Toyota Camry, Toyota RAV4, and Lexus NX models. The plant has a capacity of up to 50,000 units per year and employs over 800 people. If the transfer to NAMI goes through, it is uncertain what the future of the plant will be and how many jobs will be affected.
Russia has been trying to increase its control over foreign investments in various industries, including the automotive industry. In recent years, the government has introduced various measures aimed at boosting domestic production, such as offering tax breaks and subsidies to local manufacturers. The acquisition of foreign-owned plants by NAMI is part of this strategy, which aims to increase the share of locally produced components in Russian-made vehicles.
The transfer of Toyota’s assets to NAMI is still being considered, and no decision has been made at this point. However, the potential move has already raised concerns among foreign investors who fear that their assets in Russia may be at risk of being seized by the state. The Russian government has denied these claims, stating that the acquisition of foreign-owned plants is part of its efforts to develop the local economy and increase domestic production.
It remains to be seen what the outcome of the transfer will be and how it will affect the Russian automotive industry. The acquisition of Toyota’s plant in St. Petersburg by NAMI could provide a boost to domestic production and increase Russia’s share of the global automotive market. However, it could also lead to job losses and a decline in foreign investment in the country.
Toyota’s St. Petersburg plant in Russia may be transferred to the Russian state entity NAMI as part of Russia’s efforts to increase domestic production and gain more control over foreign investments in the country. While Toyota is still considering its options regarding the plant’s future, the potential transfer has already raised concerns among foreign investors.
The acquisition of foreign-owned plants by NAMI is part of Russia’s strategy to boost domestic production and increase the share of locally produced components in Russian-made vehicles. It remains to be seen how the transfer will affect the Russian automotive industry and whether it will lead to job losses or a decline in foreign investment.