Toyota to Start RAV4 Production in Russia from August
Toyota will begin building the RAV4 SUV at its St Petersburg plant this August, following a major investment to double capacity and expand local manufacturing.
Toyota will begin assembling the RAV4 SUV at its St Petersburg facility in August 2016, following a 7.1 billion rouble investment to expand the plant and double its annual capacity to 100,000 vehicles. The move adds the RAV4 to the Camry, which Toyota already builds in Russia for the domestic market as well as for Kazakhstan and Belarus.
The expansion included enlarging manufacturing shops, extending production lines, and installing new automated equipment for body welding, stamping and assembly. Toyota's total investment in the St Petersburg plant now stands at 18.2 billion roubles. These upgrades have allowed the facility to double output from its previous 50,000 units per year, enabling the addition of the RAV4 to local production.
RAV4 joins Camry in Russian production
The RAV4 has been a strong seller for Toyota in Russia. In 2015, it was the brand's top model in the country, with 27,102 units sold. This was a drop from 38,919 the previous year, reflecting a sharp decline in the overall Russian car market. Despite the fall, the RAV4 remained among the top-selling vehicles, ranking sixth overall in the first two months of 2016 with 5,873 units registered.
Toyota's decision to localise RAV4 production follows a broader trend among manufacturers to build popular models closer to key markets, reducing logistics costs and currency risks. The St Petersburg plant, which began Camry production in 2007, now supplies both saloon and SUV segments for Russia and neighbouring markets. For more on the Camry's local production, see Toyota Begins Production of 2012 Camry in St Petersburg.
Capacity and investment details
The latest 7.1 billion rouble investment brings Toyota's total spend at the St Petersburg plant to 18.2 billion roubles since opening. The expansion project required new automation in welding and assembly, as well as the enlargement of all main manufacturing shops. With these changes, the plant is now equipped to handle up to 100,000 vehicles per year, supporting both Camry and RAV4 lines.
Market context and future outlook
Toyota held a 7.5 percent share of the Russian market in 2015, although its sales fell sharply amid wider industry declines. The localisation of RAV4 production is intended to help Toyota remain competitive as market conditions fluctuate. Alongside the addition of the RAV4, Toyota has increased its European manufacturing footprint, with the C-HR recently added at its Turkish plant and engines for that model sourced from the UK.
With the RAV4 assembled in Russia from August, Toyota will produce nine models in Europe, including Avensis, Auris, Yaris, AYGO, Camry, Corolla, Verso and C-HR. This strategy reflects the company's commitment to local manufacturing in major markets, aiming to balance capacity with demand across the region.
