Toyota will not localize Lexus’ production in Russia even though new state purchase rules demand that cars be produced either in the Customs Union of Russia, Kazakhstan and Belarus or in special economic zones.
“Our premium cars require special production skills, which only workers at several Toyota Motor Corporation ventures in Japan and the US have,” the company’s representative said, cited by Vedomosti.
Nissan can lose state orders for its premium brand cars Infinity. The cars were assembled in St. Petersburg, but in May the production was stopped as the contract assembly agreement expired. The company does not plan to extend the contract, a Nissan representative said, the business daily reported.
In 2013, the state purchases of Nissan and Infiniti accounted for 0.4% and about 1% of all their Russian sales. The new legislation can also hurt Germany’s Mercedes-Benz sales, as the state purchases accounted for 3% of the company’s total sales in Russia last year.