The Russian government took a “bold move” in announcing plans to manufacture an electric car with a foreign car manufacturer, considering the lack of infrastructure and government support for EVs and the extremely low number of EVs in circulation in Russia, IHS Markit analysts said this week, according to OilPrice.com.
Last week, Russia’s Deputy Minister of Industry and Trade Alexander Morozov said the country would launch the next electric car in 2020, together with an unnamed foreign manufacturer “with solid operations in Russia.”
Commenting on the significance of a foreign automaker launching EV production in Russia, Tim Urquhart, principal automotive analyst at IHS Markit, said that the move would be a bold one, given the fact that Russia doesn’t have incentives for EVs, or infrastructure for massive EV penetration on its market.
“However, it is likely that the announcement will dovetail with some kind of government commitment to support EV infrastructure growth and customer take-up,” Urquhart noted.
According to the analyst, the foreign manufacturer in question could be France’s Renault, thanks to its links to the Russian government via the ownership of the AvtoVAZ car making group. On the other hand, Hyundai—which is the second largest-selling carmaker in the Russian market—has many EVs in its offering, Urquhart said.
Russia, however, has very few EVs, considering its huge territory and population, so “it will take some time before EV’s gain any kind of real traction in the market,” Urquhart says.
Russia had just 3,600 electric vehicles as of January 2019, IHS Markit said earlier this year, quoting analytics from Autostat.