Plant Closure in Tatarstan
Plans are underway to shut down the Aurus assembly plant in Yelabuga, Tatarstan, by the end of 2026. The production of limousines intended for Kremlin officials has proven financially unsustainable. Aurus manufacturing began in 2018 in Moscow, with the goal of producing vehicles for high-ranking state officials. However, by the close of 2024, fewer than 150 cars had been assembled at the new Yelabuga facility, with approximately 100 additional units built at another site. High production costs combined with weak demand have effectively doomed the project.
Sollers, the company initially involved in production, sold its stake in the venture to Hit Motors Rus in 2024. In 2025, Gazprom Tech—a subsidiary of Gazprom—became a co-owner. The Aurus office in Khimki, Moscow, is set to begin closing in September, with employees being offered relocation to St. Petersburg, specifically to the former Toyota plant in Shushary.
Chinese Roots and a St. Petersburg Strategy
The new Aurus 900 model, based on China's Hongqi H9, carries a starting price of 12 million rubles. Meanwhile, the top-spec version of the updated Senat limousine reaches 117 million rubles. Yet, as of 2025, only about 500 Hongqi H9 vehicles had been registered in Russia, signaling insufficient demand for this product line. FAW Hongqi, the Chinese luxury division, has refused to assemble cars for Russia at the Shushary site.
No subsidies for the Unified Modular Platform (UMP) have been allocated in Russia's federal budget proposal for 2026–2028. Industry experts note that the budget lacks available funds.
“One can only hope that at least for officials, these cars won't be purchased in excessive numbers,” one expert remarks.
Aurus also remains under international sanctions, further complicating its market position. Over the first nine months of 2025, car production in Russia dropped by 20% compared to the same period the previous year. Automotive expert Sergey Tsyganov commented:
“They failed to turn a presidential toy into a real mass-market brand. There were huge ambitions, but zero economic justification.”
In spring 2024, Russian President Vladimir Putin gifted an Aurus vehicle to North Korean leader Kim Jong Un, a move that drew criticism—particularly from South Korea, which viewed the transfer as a violation of UN Security Council resolutions. As a result, the Aurus project faces numerous challenges that cast doubt on its long-term viability.
The closure of the Aurus plant in Tatarstan highlights serious issues within Russia's automotive industry, especially in the luxury vehicle segment. A lack of consumer demand and high production costs suggest the market is not ready to support such projects, particularly under economic sanctions and financial constraints. This also underscores a broader trend of declining manufacturing output in Russia, which could have lasting repercussions for the country's economy.
The challenges facing the Aurus plant in Tatarstan are reminiscent of the broader struggles within the Russian automotive sector. As highlighted in a recent report, the trucking industry is experiencing significant financial losses, further emphasizing the difficulties in maintaining sustainable vehicle production in the current economic climate.