Indian, Russian firms eye joint venture for car manufacturing

Companies from India and Russia are exploring the possibility of establishing a joint venture to produce cars in Russia.

The potential collaboration was highlighted by Ajay Sahai, General and Chief Executive Officer of the Federation of Indian Export Organisations (FIEO), during a statement on July 25, Caliber.Az reports, citing Russian media.

Sahai indicated that there is potential for new Indian investments in Russia's automotive manufacturing sector, suggesting that a joint venture could leverage the strengths of both countries' markets. "New [Indian] investment in car manufacturing in Russia is definitely possible, and the advantage will be that if it is done by Russian and Indian companies, both markets will be open," he stated.

However, Sahai noted that many Indian car plants are operated by multinational companies, which introduces complexities related to technology transfer restrictions. This factor must be considered in the planning and implementation of the joint venture to ensure compliance with international regulations.