Russia Eyes Development of National Vehicle Platform

The Russian government wants to invest about RR90 billion ($900 million) in the development of a national automobile platform within the next three years.

Most funding for the project, already approved by the Duma, the Russian Parliament, will be provided to the Central Scientific Research Automobile and Automotive Engines Institute (NAMI), which will act as general designer.

Alexey Matushansky, director of the Department of Strategic Development and Corporate Policy in the Ministry of Industry and Trade, says the project is important for the future of the Russian automotive industry.

“By designing such a modular platform, we are laying the foundation for developing our own automotive production.  It will be used for the assembly of cars of various classes from Golf (compact) class to business class.

“NAMI will play the leading role in implementation of this project, while its main task will be to unify the component base for this platform. The new platform will be also used for serial production of hybrid and especially electric vehicles in the future.” 

The platform initially was announced by Natalia Nikipelova, president of TVEL,  Russia’s leading nuclear fuel cycle company and part of the Russian nuclear monopoly Rosatom, who discussed during the St. Petersburg International Economic Forum the importance of designing a mass-produced Russian EV based on several unified automobile platforms.

“There is a need to localize such a platform within the territory of Russia, which will allow (the production of) as many cars as possible that will be economically justified,” Nikipelova said. “I once again urge the car manufacturers to agree – at least in terms of electric cars – on cooperation based on a Russian deeply localized platform. This will be the first Russian electric car.”

Currently Rosatom is building two gigafactories for the production of battery cells and batteries and has plans to build other components of the future EV. As part of these plans, Rosatom plans to begin producing an integrated electric powertrain as well as composite materials to reduce the vehicle’s weight.

Most Russian auto industry analysts consider the new initiative important, especially amid the country’s ever-growing isolation in the international arena, particularly in the automotive sector.

Zeekr X among most popular China-built EVs sold in Russia.

Those analysts also believe the planned variety of car models and platforms does not allow local suppliers to ensure necessary volumes of component production. For automakers that means the need for further imports. Still, the design of a unified platform could be considered as another attempt to do something that has never been done before in the Russian automobile industry. Analysts estimate that with 80% of production localized, more than 300,000 jobs will be created directly in the automotive and some related industries.

Some analysts are pessimistic. One is Ivan Rybin, who says in an interview with the Russian Svobodnay Pressa that it is currently impossible to build a premium sedan based on a low-cost car. In addition, he says, it will be impossible to use components from smaller cars to produce and repair larger vehicles.

Moreover, it is currently unclear whether the volume of cars to be produced using the new platform will make the project profitable or at least economically justified. Analysts predict such volumes should range between 400,000 and 500,000 units annually.

According to Wards Intelligence data, Russian car production peaked at 1,968,788 in 2012 but had fallen to 1,349,339 by 2021. Production then fell by two-thirds, to 448,246 in 2022, when Russia’s auto industry was disrupted by the country’s invasion of Ukraine, and rose to 506,127 in 2023.