Honda and Acura to cease importing cars into Russia

Honda has decided to cease importing cars, motorcycles, and power equipment into Russia, according to the magazine Za rulem ("Behind the Wheel"), which says the company's Russian leadership made the announcement to employees and dealers this week. Honda is expected to cease imports by the end of the year.

The Japanese automaker has no immediate plans to leave the Russian market entirely, but it reportedly will focus only on the sale of replacement parts and maintenance.

Major cutbacks are expected for both Honda's Russian staff and dealers. According to Za rulem, dealers in Russia will still have the right to organize independently the importation of Honda products.

Acura, another Japanese automaker, has come to a similar decision, recently telling Russian dealers that it will suspend exports to Russia after fulfilling its contractual obligations on orders of its MDX model. Acura also plans to continue limited operations inside Russia, focusing on servicing cars already on the road.

Update: Honda has denied reports that it is "withdrawing" from the Russian automotive market, saying it is merely restructuring the way it sells cars in Russia. According to Mikhail Plotnikov, head of marketing for Honda Motors Russia, the company plans to change the terms under which dealers sell its cars. Russian Honda dealers will now be expected to import cars directly from Honda's central office, rather than order the vehicles through its Russian office.

• In March 2015, American carmaker General Motors announced the exit from the Russian market of its Opel model and many of its Chevrolet models. Afterwards, GM reduced its manufacturing plant in Kaliningrad to half-capacity. More recently, GM revealed that it will close its St. Petersburg factory and mothball operations there.
• In mid-August, production of the Toyota Land Cruiser Prado ceased at a factory in Vladivostok. Toyota says it will continue to sell the SUV in Russia, though the company will import units from foreign factories, which is expected to affect the model's price.
• According to the Association of European Businesses, sales of passenger and light commercial vehicles in Russia dropped 35.3 percent in the first seven months of 2015. Honda sales reportedly fell 78 percent in that same period.