Automotive communications: Russia wants to start assembling cars in Nicaragua and Venezuela

Russia wants to expand the production of the domestic automotive industry in Latin America, Alexander Shchetinin, head of the Latin American department of the Russian Foreign Ministry, told Izvestia. This possibility is being explored with Venezuela and Nicaragua, said Deputy Minister of Industry and Trade Alexei Gruzdev. The contract for the assembly of UAZ vehicles has already been signed with Cuba, and a large-scale assembly was launched on the island in April. About the prospects of the Russian automotive industry and competition in the region — in the material of Izvestia.

Which countries can produce cars?

Russia is interested in establishing car production in Latin American countries.

— Absolutely, yes, of course. This is already a matter of specific economic contracts that are being signed," said Alexander Shchetinin, head of the Latin American Department of the Ministry of Foreign Affairs, answering a question from Izvestia about Russia's interest in expanding car assembly in the region.

The diplomat noted that the production of cars is underway in Cuba, Havana has already signed contracts with Russian automakers.

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Negotiations on expanding the geography of Russian machinery production are underway with many countries, Deputy Minister of Industry and Trade of the Russian Federation Alexei Gruzdev told Izvestia.

— There are markets that are very far away, including Latin America. Very complicated logistics, long, expensive logistics. Therefore, our enterprises often decide that they need to go closer to the customer, closer to that market, thereby minimizing logistics costs, duties and taxes. They use preferential treatment in those countries that accept our investments and expand their export opportunities," he said.

According to Alexey Gruzdev, Russia, in particular, is interested in launching car production in Nicaragua and Venezuela. There are plans for other countries in Central and South America.

Large-scale assembly of UAZ vehicles began in Cuba in April 2025. The plant, located in the industrial zone of Havana, is expected to reach its design capacity by September 2025. Currently, the company produces UAZ Patriot and Pickup models adapted to the climatic and road conditions of the region. In the future, the UAZ Profi will be included in the list of models.

Earlier, in a conversation with Izvestia, Venezuelan Foreign Minister Ivan Gil Pinto said that he sees the possibility of producing Russian cars in his country. The topic of localization of production in various fields is on the agenda of the negotiations between the two countries. Ecuador is also interested in allowing Russian cars to its market, Juan Fernando Holguin Flores, the country's ambassador to Russia, told Izvestia earlier.

Meanwhile, Russia is also interested in exporting electronics and household appliances to Latin America, Alexey Gruzdev emphasized.

— Everything that is being implemented in Russian industry today, as part of the course towards technological sovereignty, is naturally intended not only to meet the growing demand in Russian industry. Latin America is one of the promising markets. There is also a very important IT sector, which includes digital solutions, software, and industrial software," he said.

Prospects of the Russian automotive industry in Latin America

The Latin American public would be interested in Russian cars if their cost was lower than that of other manufacturers, says Viktor Kheifets, professor at the Faculty of International Relations at St. Petersburg State University.

— SUVs are popular in Latin America. In particular, the Niva is in demand in conditions of poor cross-country traffic. In some countries, for example in Ecuador, the Russian car industry feels better than in Russia itself, this is primarily due to lower temperature fluctuations, the expert says.

However, exporting Russian cars to Latin America or manufacturing them in the region is unlikely to be a particularly profitable occupation, says Maxim Kadakov, editor-in-chief of Za Rulem magazine. Russian entrepreneurs may be more interested in low-cost Latin American consumers, but there are enough offers at competitive prices on the market of these countries.

— There are already Chinese cars on the market in these countries, there are used cars, and many countries have larger assembly plants. In particular, Brazil already has Volkswagen," Kadakov said.

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It is advantageous to localize the assembly if the company produces at least 1 thousand cars per year, it is hardly possible to do this without large government subsidies, the expert emphasizes. In addition, in addition to the organization of production, it is necessary to establish maintenance, and for this to provide the necessary training for local craftsmen.

— Cuba is one of Russia's biggest friends in the region. The production that we managed to agree on is the simplest assembly that will allow us to produce up to 300 cars, which is exactly how much Russia used to supply there," Kadakov says.

According to the expert, the supplies of the Russian automotive industry to Latin America were particularly profitable in the first half of the 1980s, when pricing features made it possible to conquer the market of the region due to the low price. At that time, Lada was the number one brand in Chile. It is more difficult to achieve this now, he concluded.