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AUTOSTAT OMNIBUS-2019. Winter Car Tires: Car Owner Preferences (Third Wave)

AUTOSTAT OMNIBUS-2019. Winter Car Tires: Car Owner Preferences (Third Wave)

Exit date 12.12.2019

Format PDF

Price 3500 eur.

The third autumn wave of the project is aimed at the consumer preferences in the purchase and operation of winter tires.

12 december more info

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Leaders of car market of Russia in January of 2019

Top news

The market of new trucks fell by 11% in November 13.12.19 - 08:40 The market of new trucks fell by 11% in November

The volume of this market reached 7.2 thousand units

Articles

Results of foreign car assembly in Russia in the I half of 2011

Organization of the local production in the large export markets has become a good trump for global car manufacturers, which enables them to take leading positions in the sales ratings. Our country is not an exception: every year more and more companies decided to establish new joint projects and own plants in Russia, expecting the growth and development of the promising local car market. 

Industrial assembly regime with tariff preference for car component import, has become the additionals stimulus for foreign car production establishment in our country.

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After 2009, when new car import duties were increased, foreign manufacturers with production in Russia, got serious competitive advantages such as flexible pricing for model lineup of domestic production as well as participance in government programs of car sale promotion.
Moreover since the last year production of foreign cars in Russia has exceeded production of domestic brands (as per the results of six months of 2011 – 480,700 cars vs 336,400 cars). We should also mention that over 60% of domestically produced foreign cars are manufactured under industrial assembly regime. Thus, the share of foreign brands in the total passenger car production in Russia came up to 58.8% (from January till June 2010 – 52.9%).

As for foreign passenger car production dynamics, if in 2003 Russian assembly enterprises  produced totally about 58,000 new foreign cars, in five years, in 2008 they produced 10 times more – 593,000 cars of foreign brands. Despite the fact that Russian car industry has not achieved the pre-crisis level, foreign car production set up a new record last year – 627,100 cars. This result became possible due to the launch of new foreign plants in Russia, extention of active facilities, and diversification of model lineup. That is why in the future domestically assembled foreign cars will predominate in both Russian car industry and in the market.

The examples of successful work in Russia are Ford plant in Vsevolzhsk, and Avtoframos in Moscow, which operate under industrial assembly regime. 
In 2002 Ford started production of the Focus in Russia. A year later, this model became the best selling foreign car in Russia and kept its leadership till 2009, when during the crisis the demand shifted to inexpensive car segment and the Renault Logan took the leadership. 
In general Ford and Renault developed their Russian plants in similar ways. Both enterprises have extended their production capacities several times. At that their production growth continued even during the crisis and their model lineup was also extended. In March 2009 Ford plant in Vsevolozhsk started to assemble the second model – the Mondeo sedan. The production capacity came up to 125,000 cars per year. In February 2010 Avtoframos started production of the second model – the Renault Sandeo hatchback, having doubled its production capacity up to 160,000 cars per year.
Russian Volkswagen, Toyota, GM and Nissan plants started their operation in Russia quite successfully.
Due to extension of their model lineups of domestic production Nissan and Volkswagen are starting three-shift work this year.  Moreover GM and Volkswagen intend to increase production capacities of their Russian plant under the new industrial assembly regime.
Meanwhile other foreign car manufacturers launch their plants in Russia.  Thus, in April 2010 new PSA/ Peugeot-Citroen and Mitsubishi plant was opened, and five models were put into production: the Peugeot 308 and the Citroen C4 hatchbacks,  as well as the Peugeot  4007,  the Citroen С-Crosser and the Mitsubishi Outlander crossovers. Moreover in January 2011 Hyundai started serial car production at its plant in St. Petersburg and is planning to manufacture 105,000 cars, including KIA cars, during the first year of operation.

We should also mention another tendency in foreign car production, started last year. Foreign carmakers started to introduce cars designed specially for Russian consumers and the climate of our country in the Russian market.
Thus, in June 2010 Volkswagen started production of the Polo sedan, which become the best selling model of this brand in Russia. Hyundai has also launched its “Russian” car this year – the Solaris sedan, which become the best selling foreign car in Russia in only three months. In August the enterprise’s assembly line will  get the KIA Rio new sedan – it is also designed specially for Russian consumers and will be produced on the same platform as the Solaris. Moreover, Nissan is preparing low-cost sedan, designed specially for Russia. The brand-new will be based on B0 platform and will be assembled at AvtoVAZ since the end of 2012. PSA/Peugeot-Citroen announces its intention to design absolutely new sedan on C4 platform for the Russian market by 2013.

As for foreign car manufacturers, which do not operate under industrial assembly regime but are engaged in contract assembly, Avtotor should be the first to be mentioned.

Since 2007 the Kaliningrad plant has been the largest foreign car manufacturer in Russia, which is a result of its more privileged position in comparison even with the enterprises operating under industrial assembly regime. As per the results of the four months of 2011, Avtotor is still the leader in foreign car production. As a resident of the special economic zone in Kaliningrad region Avtotor specializes in SKD assembly and import of car components duty-free, which many foreign carmakers, even those with own plants in Russia, did not fail to use.  
Preferential terms, however, are active only till 2016, but Avtotor has already been developing an investment project for CKD production complex construction, extention of its facilities and intensification of localization, which will enable the enterprise to continue its activity in the future.

Other large contract manufacturer - the Taganrog car plant – have chosen another line of development. TagAZ was originally Hyundai models manufacturer, for the last few years the plant has been mastering more and more foreign, mostly Chinese, models, which are produced with TagAZ own brands. This year the Taganrog car plant’s model lineup has been added by the Tagaz C10 sedan, based on the JAC A138 Tojoy, introduced in China in 2008.

We should also mention the Cherkessk plant Derways, which specialised in SKD assembly of Chinese cars for long time, but started CKD production project at the right time. After the increase in customs duty for ready-made bodies, Derways became almost the only chance for many Chinese carmakers to stay in the Russian market.

At present the Cherkessk plant assembles Lifan, Geely, Great Wall and Haima cars. The enterprise is planning to manufacture 55,000 – 57,000 cars in 2011, which would be the record for the plant.
As for the prospects of foreign car assembly in Russia, the policy of import replacement, evinced in increase of customs duty for  car import, as well as the new rules of industrial assembly will define the development of the local production of foreign cars in medium-term prospects. We should remind that according to the terms of WTO accession for Russia, customs duty for car import should decrease steadily up to 15% in 2018. At that the new rules of industrial assembly regime, which came into effect in February 2011, are ment to facilitate the growth in foreign car production in our country. 


Agreement with Ministry of Economic Development of the Russian Federation about the new industrial assembly regime was signed by four companies: AvtoVAZ-Renault-Nissan-IzhAvto and KAMAZ-Mercedes consortium, JV Ford-Sollers, Volkswagen and General Motors. According to Ministry of Economic Development evaluation active facilities for 1.3 million cars will be added by new enterprises with production capacity of over 500,000 cars per year.  The total additional investment in the project will exceed $5 billion till 2015.
Meanwhile, FIAT signed agreement about industrial assembly on previous terms, having used unfulfilled agreement of its subsidiary Saveko, which was signed in 2008. At that Italian car manufacturer undertook liability to extend production volume (120,000 cars per year) and to construct an engine plant. Moreover, Mazda signed agreement about industrial assembly on previous terms under the Government instructions as the company will construct a plant in a socially important area – the Primorye Territory.

22.09.11