Toyota closes store in Russia amid war in Ukraine, no plans to restart in near future

Toyota Motor is following other Japanese automakers like Nissan Motor and Honda Cars in pulling out of Russia after the country raged against Ukraine.

By :
HT automatic office

Sep 24, 2022, 10:19 AM

Toyota will pull out of manufacturing in Russia altogether and has no plans to sell the business. It will also stop selling new cars without imports in Russia. (Reuters)

Japanese car giant Toyota Motor is the latest automaker to pull out of Russia amid the country’s war with Ukraine. The automaker made the announcement on Friday evening, confirming its decision to close its only plant in the country as a result of the war. Reuters news agency reported that Toyota decided to permanently cease production of vehicles in Russia. Before coming out, Toyota had the largest market share in the country compared to any other Japanese brand.

Toyota had started manufacturing cars locally in Russia in 2007. It had set up its plant in St. Petersburg where it made the RAV4 sport utility vehicle and the Camry sedan before the decision to shut it down. Last year, Toyota manufactured 80,000 vehicles and sold 110,000 units in Russia.

Toyota now joins other Japanese automakers like Nissan Motor and Honda Motor due to the ongoing war between Russia and Ukraine. Toyota has not yet decided on the future of its employees working at the Saint Petersburg site. The automaker also confirmed that it has no plans to sell its business at this time. Toyota released a statement saying, “After six months, we have not been able to resume normal operations and see no indication that we can restart in the future.”

Toyota said it will continue to support its retail network in Russia and also offer service facilities to its existing customers.

The Russian car market has been in the doldrums since President Vladimir Putin launched the invasion of Ukraine earlier this year. Car deliveries fell by more than 80% between May and June this year. Avtovaz, which took over Renault’s business after the French auto giant exited, has increased its share of sales in recent months alongside Chinese companies that have filled the void left by Western and Japanese brands.

Date of first publication: Sep 24, 2022, 10:19 am IST

Alejandro L. Myatt