Financial capacity of the largest market in the country in the Moscow region has declined, but others could grow by tens of percent - mainly due to the replacement of low-cost cars by more expensive models, experts say.19 junemore info
Over the last 8 years the Russian market of new passenger cars already suffered the crisis, when the dynamics of the sales went to the "minus". So, from October of 2008 to April of 2010 the monthly dynamics of the market of new cars showed the negative values.
By the results of auction the company Renault bought about 5,9% of shares of “Avtoframos” from the government of Moscow. As a result of deal Renault became the owner of 100% of shares of this enterprise. The share of capital authorities in “Avtoframos” was received by Renault at the start price - RUB 1,980,000,000 (about € 49,000,000).
The plant “Avtoframos” was created in 1998 on the parity basement as the joint venture of Renault and Moscow city. In 2004 Renault bought 26% of shares that were belonged to Moscow and in 2006 the share of Renault group in capital of “Avtoframos” was increased to 94,1% by the results of corporative re-organization.
In 2005 it was opened the plant of full cycle in Moscow, its capacities were doubled in 2010 to 160,000 cars per a year. Renault invested about € 480,000,000 in the development of plant in Moscow. At the present time Renault produces six models in the Russian plant: Logan, Sandero, Fluence, Duster, Latitude and Koleos. The work over production capacities increasing to 188,000 cars per a year is being continued.