Toyota Motor Corp has decided to exit from auto production in Russia, saying it sees no prospect of resuming already suspended output as supplies of key materials remain disrupted seven months into Moscow’s war against Ukraine.
Toyota, which halted operations at its plant in St Petersburg in March due to supply chain issues, is the first major Japanese automaker to announce its withdrawal from vehicle manufacturing in Russia. Nissan Motor Co, another Japanese automaker, recently decided to extend its suspension of its plant in St Petersburg for three months until late December.
The plant had been set to resume by the end of September. Toyota said in a statement that it has been unable to resume normal activities even after half a year and sees “no indication that we can restart in the future.
” Its operations in Moscow will be restructured to continue to provide maintenance services to existing customers of its Toyota and Lexus brand vehicles, the automaker said. Chief Communication Officer Jun Nagata said that Toyota will not sell or transfer its Russian business operations to other entities.
Toyota employs around 2,350 people in Russia including at its sole factory, located in St Petersburg, which began production in 2007 and manufactures the RAV4 sport utility vehicle and the Camry sedan. In 2021, it produced about 80,000 units.