Toyota will invest 135 million euros to build the RAV4 in Russia in 2016

Article by Christian A., on September 19, 2013

The RAV4 has become Toyota's top-selling model in Russia and so it comes as no surprise that the automaker will invest around 18 billion yen (135 million euros) to expand capacity at its St. Petersburg factory where the assembly of its RAV4 compact SUV will start in 2016. Even as the economic slowdown has caused auto sales to fall for the past six straight months in Russia, RAV4 sales have increased by 43% to 27,000 vehicles in the eight months to August.

In a statement, Toyota said that the expanded plant will roll out up to 50,000 RAV4 vehicles a year based on the complete knock-down system. Currently, this plant (which makes the Camry sedan) is capable of producing 50,000 vehicles a year.

Toyota spokesman Ryo Sakai said that demand is increasing for the RAV4 and with its impressive sales, it makes sense that the automaker start local production of this model based on a longer term standpoint. He said that Russia offers incentives to urge foreign carmakers to localize production. In Russia, the RAV4 takes the No. 4 spot when it comes to SUV sales.

It follows Dacia's Duster, the Chevrolet Niva and the Lada 4x4. The RAV4 makes up almost a quarter of Toyota's sales in Russia. Toyota’s car sales in Russia fell 3% year-on-year this year, compared to a 7% drop in overall car sales in the country. In recent years, sales have increased. Last year, Toyota posted sales of 169,000 vehicles in Russia, a 26% increase compared to 2011 sales. Meanwhile, Russia's total auto demand increased by 11% to 2.94 million vehicles.

If you liked the article, share on:

Comments

Recommended

Volkswagen of America has a nice surprise for potential customers of the new VW Tiguan (2018 model year). The latest iteration of the Tiguan – set to arrive in the...
by - May 25, 2017
Toyota Camry is many things but exciting isn’t one of its frequent descriptions. That’s why throughout the years, Toyota has been stepping up its game for the said model in...
by - May 25, 2017
Volkswagen intends to leave the crowd in awe at the Worthersee Meeting (Wortherseetreffen) – the largest VW and Audi car show in Europe – with its new GTI Worthersee concept. ...
by - May 25, 2017
The much-hyped 2018 Dodge Challenger SRT Demon certainly has attracted a lot of attention, and possibly many potential buyers. Now, here is good news for interested customers: Dodge has finally...
by - May 25, 2017
An RHD (right hand drive) BMW M4 DTM Champion Edition has been listed to be for sale by Romans International, UK’s leading supercar dealership. The first owner of this rare...
by - May 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries