Toyota plant transfer to NAMI not under discussion - Russian trade minister

MOSCOW. Nov 11 Interfax) - A scenario where the production assets of a departing participant in Russia's car market are effectively taken over by the state, as was the case with Renault-Nissan, is not being considered for Toyota.

The Russian Ministry of Industry and Trade is not discussing a transfer of the Japanese carmaker's assets to the NAMI Central Research and Development Automobile and Engine Institute, a federal state unitary enterprise, the minister, Deputy Prime Minister Denis Manturov, told journalists on Friday.

"For now no discussions about this are being held," Manturov said.

NAMI already took over the assets of two foreign participants in the Russian car market after they decided to leave Russia. The institute first added to its balance sheet the French Renault's share in AvtoVAZ , for a token price, then announced a similar scheme for the assets of Japan's Nissan.

In late September Toyota's Russian business, OOO Toyota Motor announced a full halt to its production in St. Petersburg. All staff, who numbered 2,350 by then, had been retained since production ceased in early March, the company said.

The ministry said the company would continue to provide post-sale service for Toyota and Lexus cars in Russia and support the local distribution network. The ministry added that it was contemplating possible scenarios for developing the St. Petersburg site with the city's authorities.

OOO Toyota Motor was registered in 2001. Its St. Petersburg facility has an annual capacity of 100,000 cars. The enterprise started operating in late 2007, making RAV4 and Camry models under a special investment contract with the Industry and Trade Ministry. The contract stipulated 20 billion rubles in total investment from Toyota.

According to data from the Association of European Businesses, Toyota's sales in Russia (including Lexus) in January-September 2022 dropped by more than three-quarters to 20,068 cars. Its market share shrank by 2.7 percentage points to 4.2 per cent.