Moskvich can break even at 40,000 cars assembled per year, plan for 2024 is close to 35,000 - Kogogin

MOSCOW. Feb 15 (Interfax) - Break-even for the Moscow-based Moskvich (formerly Renault) automobile plant is achieved at 40,000 assembled cars per year, while the plant is targeting 30,000-35,000 units in 2024, Sergei Kogogin, CEO of Kamaz PJSC , which manages the factory together with the Moscow government, said in an interview with Vedomosti.

As for whether it would be advisable for Moskvich to strive for the 50,000 cars previously announced for 2024, Kogogin replied, "No - precisely because it is not necessary. The break-even level is 40,000 cars per year. This year we are targeting 30-35,000 cars," he said, adding that Moskvich's Chinese technology partner JAC is "far from the largest automobile corporation in China."

Moskvich lost 160 million rubles last year, Kogogin said. He said that the plant is operating and assembling vehicles, but not in the volumes originally planned.

A move to Moskvitch small-unit assembly, which would allow for savings of 150,000 rubles per car, may require an additional 4 billion rubles, Kogogin said. "This will be either equity financing or funds borrowed from banks," he said, without specifying who would have to contribute the funds, Kamaz or the Moscow government. "Since the plant will receive money anyway under our guarantees, there is not much difference," he said.

He confirmed his intention to begin production of the Atom electric car at Moskvich in 2025. "For now, everything should be exactly like this. I tested a sample of this electric car here in Naberezhnye Chelny, and in terms of driving performance, the car is worthy of high praise," Kogogin said.

The Moskvich automobile line, produced in Moscow, currently consists of three models, the Moskvich 3 urban crossover, the Moskvich 3e electric car and the Moskvich 6 sedan. Autostat previously reported that Moskvich shipped about 19,000 cars to dealers in 2023, of which 15,300 were sold to customers.