The revival of the Moskvich automobile brand has encountered significant hurdles, raising concerns about its long-term viability. Despite substantial financial investments and ambitious production targets, the company is grappling with low sales, mounting debt, and an uncertain future.

The delayed launch of the seven-seater crossover “Moskvich 8” exemplifies the challenges faced by the brand. Originally slated for release in December 2024, with a revised date of July 22, the vehicle has yet to appear in showrooms, leaving potential customers and industry experts questioning its fate.

Sales figures for existing models remain modest, with approximately 1,100 cars sold per month across 93 official dealers. While this performance places Moskvich just outside the top 10 best-selling brands in Russia, it pales in comparison to market leaders like AVTOVAZ, Haval, and Chery.

Financial losses further compound the company’s woes. Despite a revenue of 59 billion rubles in 2023, Moskvich reported a loss exceeding 8.5 billion rubles. The value of net assets has also plummeted, indicating a growing debt burden.

The plant’s dependence on its Chinese technology partner, JAC, raises additional concerns. The extent of this reliance leaves Moskvich vulnerable to external factors and limits its autonomy in key areas such as modernization, localization, and pricing.

Experts suggest that the brand has found a niche but that is still very reliant on corporate and government purchases. Some experts believe that the brand is too dependent on its Chinese technology partner and that its future depends on relations with the partner.