Auto industry crisis: Another factory in Russia didn’t last even six months
Photo: a copy of a Chinese van under the BNM Model 1 brand (Russian media)
Russia’s automotive industry is facing a crisis — following the Pavlovsk Bus Plant, production has also stopped at the Bryansk BNM car factory. The enterprise operated for less than six months, producing only 110 vehicles, The Moscow Times reports.
According to the news agency, the BNM car factory in Bryansk, owned by the BN-Motors holding, has ceased operations. The plant was supposed to produce copies of the Chinese BNM Model 1 vans and an analogue of the BAW T7. However, due to a collapse in demand, the project was shut down, factory owner Aleksey Podshchekoldin said.
He added that the business’s profitability turned out to be much lower than the expected 20%, and loans, along with the market downturn, made production unprofitable.
Planned hundreds, produced only a hundred
The factory began large-scale assembly in March 2025 and produced only 110 vans in total. The plan was 100 vehicles per month, but they could not be sold.
In the first seven months of 2025, sales of new light commercial vehicles (LCVs) in Russia fell by 17.8% to 46,900 units. The decline has continued for six consecutive months.
Small businesses are also struggling
Experts note that such vans are mostly purchased by small companies for transportation. This segment is usually stable, but it is currently suffering due to stagnation in small businesses, high loan interest rates, and a shortage of drivers.
Even the personal BNM van assembled for the factory owner has not been sold — it is being offered for 2 million rubles.
Automotive crisis is spreading
- The Pavlovsk Bus Plant officially went on a planned corporate vacation with full pay from July 21 to August 3 — supposedly for equipment modernization and preparation for the launch of the new Citymax 8 model. However, media reports claim the assembly lines are idle due to weak demand, and employees have long been on leave.
- The Likino Bus Plant (LiAZ) switched to a four-day workweek in July, citing a 60% drop in the bus market due to reduced regional orders.
- GAZ and KAMAZ have already announced a shift to a reduced workweek due to falling demand — KAMAZ from August 1, GAZ in August.
- AvtoVAZ is also considering similar measures, potentially moving to a four-day workweek starting September 29.
Russia’s economy is rapidly losing its footing
Earlier reports indicated that industrial production in Russia continues to decline, while growth in the civilian sector is seen only in the funeral business. The country’s economy is losing resilience under the pressure of the prolonged war and international sanctions.
Key industries are facing shrinking output, and the banking sector is being prepared for possible state support. According to the Russian Finance Ministry, the budget deficit reached $13 billion in July and has exceeded $54 billion since the beginning of the year.
At the same time, government spending increased by 20.8% compared to last year, while revenues grew by only 2.8%. This indicates a growing imbalance that threatens even greater economic shocks.
