Mazda, like Toyota, might stop automobile production in Russia

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Mazda, like Toyota, might stop automobile production in Russia - paper

MOSCOW. Sept 26 (Interfax) - Automaker Mazda is considering halting production of automobiles in Russia, Japanese newspaper Nikkei reported.

The company has already suspended production under the Mazda Sollers Manufacturing Rus LLC joint venture with Sollers Auto in Vladivostok and is now studying the possibility of completing halting production in Russia, the paper said.

The company has not made a decision on halting sales or technical servicing, the paper said.

Mazda might halt operations in Russia due to supply chain disruptions in the wake of the start of Russia's military operation in Ukraine, the paper said. At the time, it was reported, Mazda suspended shipments of its products to Russia.

Mazda's joint venture with Sollers produced about 29,000 vehicles in 2021. In late April, the Russian company said in a press release on its IFRS financial statements for last year that it was holding negotiations to resume suspended supplies of components to Mazda Sollers Manufacturing.

Sales of Mazda vehicles in Russia grew by 10.6% to 29,177 in 2021 and the company had a market share of 1.8%, the Association of European Businesses reported. In the first eight months of 2022, Mazda sales tumbled 59.6% to 7,695 and the company's market share shrank by 0.7 percentage points to 1%.

Japanese automaker Toyota, which has a plant in St. Petersburg, announced earlier that it will shut down production of automobiles in Russia. The company said that in the past six months of forced downtime it has not managed to work out an approach that would make it possible to return to full-fledged operations and does not see any possibility of resuming production in Russia in the near future.

A source close to the St. Petersburg authorities told Interfax that they and Toyota will consider selling the plant, which will be mothballed.

Toyota said it will focus its business in Russia on supporting the dealership network and will continue to provide servicing for Russian Toyota and Lexus customers.