The report in focus

Truck component and spare part market in Russia

Truck component and spare part market in Russia

Exit date 09.07.2018

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Price 1690 eur.

AUTOSTAT analytic agency presents the report “Truck component and spare part market in Russia”, covering results of 2017.

09 july more info

Analytics

Russian dealers of Ford began sales of updated Mondeo

Ford Mondeo sedan has received a technological upgrade aimed at the safety improving of the car and improving of the intelligent driver assistance systems. People can order updated Ford Mondeo at all official Ford dealers in Russia.

05 julymore info

Infographics

TOP-10 of crossovers and off-road vehicles in the first half of 2018

News

AvtoVAZ may establish a joint venture in Egypt

Egyptian authorities offer AvtoVAZ to enter into joint projects with the state el Nasr Automotive Manufacturing Co., said the Minister of Trade and Industry of Egypt, Mounir Fakhry Abdel Nour. "We are not interested in the organization of the industrial assembly of cars, and we strive to create a full production". For AvtoVAZ it will be return to the local market, for el Nasr - a chance to revive the company, said Abdel Nour. In the past, EL Nasr by licenses produced Italian Fiat cars and their Eastern European versions - Polish FSO Polonez and the Yugoslav Zastava Florida, wrote the newspaper "Vedomosti". The representative of AvtoVAZ confirmed the negotiations, but he promised to tell about the details after the signing of documents by AvtoVAZ President, Bo Andersson. 

In Egypt, it was already assembled Lada – “classic” from vehicle kits, the company Lada Egypt (now al Amal Co.) built a plant with a capacity of 9,000 cars per year in one shift for 12 million Dollars. In 2013, AvtoVAZ sent for export 13,708 vehicle kits, among which 1,728 (Lada 2107) – for Egypt. In the same year, the delivery of vehicle kits stopped, the Egyptian partner proposed to set the production of Lada Granta, there is no decision yet. "We are negotiating with al Amal," - said the representative of AvtoVAZ. 

In 2013, in Egypt, according to OICA (International Organization of Automobile Manufacturers), it was sold 226,300 passenger cars – it is more by 1.6% than the year before. Over the last eight years, despite the political turmoil, the local market has doubled, it has a great potential, says the analyst of "VTB Capital", Vladimir Bespalov. In Egypt, there are only 45 passenger cars per 1000 people, in Russia - 270, and in some European countries - more than 500, he explains. 

Due to the low incomes of the population in Egypt, there are popular low cost cars, and it is the main segment of AvtoVAZ, continues Mr.Bespalov. But now there is no sense to build a full-cycle plant, he said: at the first stage partners could produce tens of thousands of cars per a year, by spending on the organization of their assembly 20-30 million Dollars, and as the market grows to enter the power of more than 100 thousand cars per year and the investment over 100 million dollars and to increase the localization. Joint venture with the state company will guarantee the project, but AvtoVAZ may continue to cooperate with al Amal Co. - for example, in the assembly project, as well as distribution and service of Lada in the country, says Mr.Bespalov. 

KAMAZ, GAZ and "Sollers" in Egypt do not have assembly projects, reported their representatives. Market is small and companies do not want to risk, says Mr.Bespalov: AvtoVAZ is easier in this situation, as it is already produced cars here.

17.09.14 AA "AUTOSTAT"
Source: www.autostat.ru
Tags: export, avtovaz