Toyota Land Cruiser production ends in Russia, but remains optimistic about the market outlook

Posted on 8/19/2015 9:44:52 AM

Toyota has wrapped production of the Land Cruiser Prado SUV in Russia, but said he has no plans to withdraw from the market affected by the crisis.

Toyota built the SUV in Vladivostok, eastern Russia, in joint venture with the Japanese trading company Mitsui & Co and Russian car maker Sollers. Production was suspended at the end of June, said a spokeswoman for Toyota.

Toyota now exports about 1,030 per month Land Cruiser Russia from its plant in Tahara, Japan, he said. This is roughly the same number preassembled in Vladivostok plant.

Toyota remains bullish on Russia, saying it has no plans to leave the country. He said his plan is to double the annual output of 100,000 units in its now only Russian plant in St. Petersburg later this year is still on track.

"There will be waves in the market [Russian] but we want to increase sales, shrugs," she said.

Toyota currently builds the Camry midsize sedan in St. Petersburg and will join the RAV4 SUV next year, according to the interactive map assembly plant Automotive News Europe.

The global automakers have been struggling to maintain sales in the Russian market, once promising. Vehicle sales have halved from their peak in 2012-2013 as prices of oil and Western sanctions on Moscow's role in the Ukrainian conflict feed an economic crisis.

In the first seven months, sales fell 35 percent to 913 181 vehicles, according to the Association of European Businesses in Russia. Sales of the Toyota brand fell 37 percent in the same period.

General Motors Co. said in March it would close its plant in St. Petersburg this year to cope with a prolonged fall in sales.

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