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Engineering and Manufacturing Company (REMC) did not receive the necessary funding from the state Fund of Industrial Development (FRP), Vedomosti daily reported on September 2. As reported by bne IntelliNews, the launch of the assembly of Russia's first and world's cheapest e-car was planned for 2020. But the production of the City Modul 1 model will now be postponed, as FRP's expert board has refused the grant of a RUB100mn loan, arguing that Zetta does not have sufficient capital for the launch, and sees a need for an anchor long-term investor for the start-up. Previous reports on Zetta indicated that the retail price for the e-car would amount to about $7,000, which would make it the cheapest in its class in the world, on a par with such under-$10,000 models as Renault City K-ZE and Ora R1. The starting annual output capacity was planned at 15,000 units annually, to be produced in Russian car industry capital Toliatti (home to the country's largest carmaker AvtoVaz). According to previous interviews of the CEO of REMC Denis Shurovsky, the REMC is a privately funded start-up founded three years ago and attracting investment of about RUB450mn ($7mn). The e-car's four in-wheel hub induction electric motors provide a nominal power of 46hp (34.4 kW) and a peak power of 97hp (72.4 kW). All of this will be powered by a 10-kWh battery that will give the Zetta a range of around 200 km.
9.2.3 Aviation corporate news
Aeroflot’s August operating results show a confident continuation of recovery. Results showed a full recovery of domestic volumes to pre-crisis levels, while international volumes have yet to see a visible bounce.
· Passenger volumes amounted to 3.8mn or -41% vs August 2019, i.e. below the market with -36.6% y/y decline, according to Rosaviation. Aeroflot airlines, with a dominant share of international traffic, continued to underperform with 60% y/y decline to 1.46mn (+41% m/m) with international traffic at -94% and domestic at -20%. Simultaneously, Pobeda showed +17% y/y growth to 1.2mn PAX and made a visible contribution to improvement of PLF. Rossiya PAX stood at 1.02mn or -32% y/y. On a m/m basis, the group’s passenger volumes increased 33% – a confident recovery
· International traffic volumes stood at 237,000 PAX, i.e. 10x higher m/m – but -91% y/y. With more routes available in September (to Egypt, UAE, Maldives), recovery will continue, although at a modest pace. Domestic traffic recovered to pre-crisis levels fully and was flat y/y in August – above our expectations
· Pobeda represented 31.6% of the Group’s volumes in August, contributing to the improvement of PLF. PLF essentially reached pre-crisis levels of 86% in August (+7.3pp m/m, -4.2pp y/y), which definitely implies positive economics of flights at current oil prices
144 RUSSIA Country Report October 2020 www.intellinews.com
