Toyota to halt vehicle production and imports in Russia

Toyota to halt vehicle production and imports in Russia

Mar 2, 2022: According to a report by Reuters, Toyota Motor Corp will halt production at its Russian factory from Friday while vehicle imports into the country have also stopped indefinitely due to supply chain disruptions.

“Like everyone around the world, Toyota is watching the ongoing developments in Ukraine with great concern for the safety of people of Ukraine and hopes for a safe return to peace as soon as possible,” Toyota said in a statement.

Toyota joins other Japanese automakers that have taken or flagged similar moves, also citing difficulty in procuring parts and other logistical hurdles.

Russia has been isolated by Western companies since the invasion of Ukraine, with some saying they would withdraw from investing there, but so far the reaction of many Japanese firms has been muted.

Toyota is Russia’s largest Japanese brand, producing about 80,000 vehicles at its St. Petersburg plant with 2,000 employees. Among other Japanese brands, Mazda Motor Corporation, which sold 30,000 cars in Russia last year, said exports of spare parts for its joint venture plant in Vladivostok would end soon.

Mitsubishi Motor Corporation may suspend production and sales in Russia, citing possible disruptions in the supply chain as a result of sanctions on Russia. Honda Motor Company said that exports of cars and motorcycles to Russia were suspended due to difficulties in delivery and payment of vehicles, although only 1,406 cars were sold in fiscal year 2020.

Nissan Motor Company, which sold 53,000 vehicles in 2021, said it was monitoring the situation in Russia and was continuing its operations. Autos and auto parts accounted for more than half of Japan’s exports to Russia in 2020, according to the finance ministry.

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