China Refuses To Produce Premium Cars For Kremlin

• 28.11.2024, 13:01

The production of Aurus at the former Toyota plant near St. Petersburg has been cancelled.

The Russian authorities have decided to postpone the launch of production of Aurus cars at the former Toyota plant near St. Petersburg due to the breakdown of negotiations with Chinese partners, three sources familiar with the situation told Vedomosti.

According to them, the luxury division of the Chinese concern FAW Honhqi was supposed to assemble premium cars at the plant in Shushary. In particular, it was supposed to produce H9 sedans under the Aurus brand.

However, FAW “jumped out of the negotiations”, one of Vedomosti's sources noted. The source added that Aurus is under sanctions and this could scare off a potential Chinese partner.

In the spring of 2024, First Deputy Prime Minister of the Russian Federation Denis Manturov promised to start production of Aurus in Shushary by the end of this year. The Ministry of Industry and Trade stated that plans to launch serial production of cars at the plant in St. Petersburg remain relevant, and the deadlines are “flexible” and depend on the preparation of technological operations.

Toyota had been producing cars in Shushary since 2007, but after the start of the war in Ukraine, it suspended operations at the plant, and in the fall of 2022, it announced its decision to close the enterprise. In March 2023, the company transferred its capacities in Russia to the state represented by FSUE NAMI, estimating the damage from the cessation of car production in the country at $655 million.

FSUE NAMI has been developing a family of vehicles for transporting top officials since 2012. In 2017, Aurus LLC was created, in which the FSUE owns 63.5%, the Arab Tawazun fund (joined the project in 2019) owns 36%, and Hit-Motors Rus owns another 0.5%. In 2021, production of the Aurus Senat sedan began in Yelabuga, and the Aurus Komendant crossover has been produced since 2022.