diff --git a/lib/modules/manager/copier/artifacts.spec.ts b/lib/modules/manager/copier/artifacts.spec.ts
index 4c2c9dc83d527379b44db9d223cd2e12340b64be..9b892e5ee840393b4cba415a16d9a95970623b43 100644
--- a/lib/modules/manager/copier/artifacts.spec.ts
+++ b/lib/modules/manager/copier/artifacts.spec.ts
@@ -118,6 +118,29 @@ describe('modules/manager/copier/artifacts', () => {
       expect(execSnapshots).toMatchObject([
         {
           cmd: 'copier update --skip-answered --defaults --answers-file .copier-answers.yml --vcs-ref 1.1.0',
+          options: {
+            cwd: '/tmp/github/some/repo',
+          },
+        },
+      ]);
+    });
+
+    it('invokes copier update with nested destination and answer file', async () => {
+      const execSnapshots = mockExecAll();
+
+      await updateArtifacts({
+        packageFileName: 'apps/my-app/.copier-answers.yml',
+        updatedDeps: upgrades,
+        newPackageFileContent: '',
+        config: {},
+      });
+
+      expect(execSnapshots).toMatchObject([
+        {
+          cmd: 'copier update --skip-answered --defaults --answers-file .copier-answers.yml --vcs-ref 1.1.0',
+          options: {
+            cwd: '/tmp/github/some/repo/apps/my-app',
+          },
         },
       ]);
     });
diff --git a/lib/modules/manager/copier/artifacts.ts b/lib/modules/manager/copier/artifacts.ts
index 1b6aa236cf9bfe620eb96233288b779c9389837f..a89b6ae7bcac3ee5ccbc1c42ded2822f3e39cc18 100644
--- a/lib/modules/manager/copier/artifacts.ts
+++ b/lib/modules/manager/copier/artifacts.ts
@@ -1,4 +1,5 @@
 import { quote } from 'shlex';
+import upath from 'upath';
 import { GlobalConfig } from '../../../config/global';
 import { logger } from '../../../logger';
 import { exec } from '../../../util/exec';
@@ -28,7 +29,7 @@ function buildCommand(
   }
   command.push(
     '--answers-file',
-    quote(packageFileName),
+    quote(upath.basename(packageFileName)),
     '--vcs-ref',
     quote(newVersion),
   );
@@ -72,6 +73,7 @@ export async function updateArtifacts({
 
   const command = buildCommand(config, packageFileName, newVersion);
   const execOptions: ExecOptions = {
+    cwdFile: packageFileName,
     docker: {},
     userConfiguredEnv: config.env,
     toolConstraints: [