Kamaz Dakar rally team in Moscow's Red Square

While competition between local automakers may have worked in individual markets in the past, that same fragmentation is one of the chief elements hampering the global competitiveness of carmakers hailing from emerging markets. China's automakers have been learning that lesson for some time now, and Russia could be next if national conglomerate Russian Technologies has anything to say about it.

The industrial giant holds major interest in three of the country's biggest automotive companies – including 37.8% of truckmaker Kamaz, 25% of automaker Avtovaz (Lada's parent company) and 30% of engine manufacturer Avtodizel – and it just recently announced preliminary plans to merge the three into a single holding firm called Rosavto.

Critics are already arguing that the limited synergies between the three will be outweighed by the increased bureaucracy. But while Russians may be resistant to conglomeration after decades of oppressively centrally-planned industry, it may be the one thing that could turn Russia's local auto industry around against the backdrop of plummeting sales and suspended production.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
  • 2015 Toyota Highlander
    MSRP: $29,765 - $44,140
    2015 Jeep Grand Cherokee
    MSRP: $29,995 - $64,895
    2015 Honda Accord
    MSRP: $22,105 - $33,630
    2015 Honda Civic
    MSRP: $18,290 - $26,740
    2015 Mazda Mazda3
    MSRP: $16,945 - $25,545
    Share This Photo X