The Moskvich brand’s revival is facing significant hurdles, with sales lagging, financial losses mounting, and questions surrounding its future viability. The highly anticipated launch of the seven-seater “Moskvich 8” has been delayed indefinitely, adding to the concerns surrounding the brand.

Despite substantial investment from the Moscow government and KAMAZ, the plant is struggling to meet production targets and generate profits. In 2023, the company reported a loss of over 8.5 billion rubles despite revenue of 59 billion rubles. The value of the company’s net assets has also significantly decreased, raising concerns about its financial stability.

Experts suggest that the brand’s reliance on corporate and government procurement in Moscow is a key factor in its sales. The lack of a strong distribution network, unlike its Chinese competitors, also hinders its ability to attract and expand its audience. The brand’s dependence on its Chinese technology partner, JAC, further complicates its prospects, as JAC has little incentive to support Moskvich’s sales or development.

The “Moskvich 8” faces an uphill battle in the competitive mid-size SUV market. With a price tag of around three million rubles, it competes with established brands like Chery, which offer similar or better-equipped vehicles at the same price point. The project is seen by some experts as more of a test for the plant, with many dealers hesitant to fully commit to the new model.

The future of the Moskvich brand remains uncertain, with questions surrounding its financial sustainability, reliance on Chinese technology, and ability to compete in the crowded automotive market. The project’s political component has raised concerns, and its long-term success hinges on its ability to overcome these challenges and establish a strong presence in the Russian automotive market.