“Although not slated to take effect until next year, the presidential Decree N166 encouraged the European carmakers to invest more into their production facilities in Russia even before the outbreak of the crisis in Ukraine,” Die Welt wrote on Thursday.
“This decree is one of Putin’s biggest economic coups to date. Ten years ago only a fraction of cars sold in Russia were actually built in Russia, while now we have most of them manufactured inside the country,” the newspaper added.
Die Welt also attributed the upswing to the weak ruble playing into the hands of both carmakers and spare part suppliers.
Even though falling demand has prompted many automakers to cut down on production, Volkswagen’s Japanese supplier of spare parts is now expanding its production facilities in Central Russia.
Moreover, the German automaker has just opened a new engine factory in Kaluga, Die Welt wrote.
