Strategic automotive alliance of Russia and China: opportunities and risks

Abstract

The period of active development of the Russian automotive industry from the late 1990s to 2021 ended with the complete shutdown of all assembly plants of automakers from the USA, Japan, South Korea and the countries Europe. As part of the sanctions regime, all Western companies stopped investment projects, sold all assets and withdrew from all joint projects with Russian producers. Uncertainty in the timing of the lifting of sanctions has also given rise to uncertainty in the timing, conditions and opportunities for further development of the Russian automotive industry. Moreover, the very development of the automotive industry in Russia without a new strategic partner, which many of the world's best companies previously acted as, is in question. But thanks to the experience gained from the implementation of the industrial assembly regime and modern infrastructure, a new strategy for the development of the industry until 2035, geographical location and extent, the unique task of finding such a partner can be considered solved by definition. However, the risks for potential cooperation are already being realized. In these unique conditions of new opportunities and unprecedented limitations, the most appropriate time is for the formation of a strategic alliance of Russian and Chinese automakers, because Russia has no alternatives, and China so needs support for its expansion into the global car market.