The revival of the Moskvich car brand is facing significant challenges, marked by production delays, financial losses, and questionable market positioning. The promised seven-seater crossover “Moskvich 8,” initially slated for launch in July 2025, remains unavailable, with dealers offering no clear timeline for its arrival. Experts suggest the brand’s struggles stem from various factors, including an over-reliance on a Chinese technological partner and a lack of a strong distribution network.

The Moscow plant, responsible for Moskvich production, has consistently failed to meet its production targets for the past two years, leading to sales plan failures. Despite substantial investments from the Moscow government and KAMAZ, the plant reported significant losses in 2023, exceeding 8.5 billion rubles, and data suggests losses continue in 2024. The company’s net assets have also declined sharply, indicating growing debt issues.

A large inventory of unsold cars and spare parts, valued at nearly 20 billion rubles, raises concerns about the brand’s future viability. While the plant has attempted to fill numerous job vacancies, the disappearance of those postings raises further questions.

Despite the setbacks, some experts believe Moskvich has found a niche, albeit a modest one, likely ranking between the 15th and 20th most popular brands in Russia. The brand heavily depends on corporate and government purchases, particularly in Moscow.

The lack of a robust distribution network, unlike its Chinese competitors, further hinders Moskvich’s ability to attract and expand its customer base. Several experts declined cooperation with Moskvich, citing that the project had more political agenda than actual business opportunity.

The launch of the Moskvich 8 faces additional hurdles, with experts questioning its positioning in the competitive mid-size SUV market. Its high price point puts it in direct competition with more established and well-equipped models.

The brand’s dependence on its Chinese technological partner, JAC, is a major concern. All aspects of modernization, localization, and pricing are controlled by the Chinese company, raising questions about Moskvich’s long-term autonomy and success.