The report in focus

Automotive Industry In Russia. Results of 2019. Prospects

Automotive Industry In Russia. Results of 2019. Prospects

Exit date 02.06.2020

Format PDF, 55 стр.

Price 960 eur.

report contains information on automotive vehicle production in Russia, particularly passenger cars and commercial vehicles

02 june more info


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


Market structure of used cars by brands and segments


Russian car plants entered into a new conflict with the metallurgists

Association of car producers of Russia (AvtoVAZ, Sollers, GAZ Group, KAMAZ) prepares a letter to the head of the Ministry of industry and trade, Victor Christenko, in which it will be written that metal plants sent a commercial offer about metal-rolls prices increasing by more than 40% from January 1st. The metallurgists didnt present explanations, as it was written in the letter that became at Kommersant newspapers disposal. The car producers ask Victor Christenko to hold the conciliation meeting with metallurgists to settlement a conflict situation. One of the carmakers added that the copy of letter is also planned to be sent to the vice-premier, Igor Sechin.
So, metallurgists and carmakers started the branch conflict it is the third for two years. At first, the parties engaged in the opened confrontation because of prices at the beginning of crisis (in August 2008 year) and it was finished by car plants applying to the vice-premier, Igor Sechin. Then the conflict was repeated in summer, 2009 year, during the market fall and the Premier Minister, Vladimir Putin, has been involved. In spite of this, the both conflicts with metallurgists were lost and the carmakers have to agree with the price increasing by 20% for the branch at the last time. The suppliers of metal-roles in Russia are MMK, Severstal and Novolipetsk metal plant.
The analysts always say that metal plants are in the more advantageous negotiation position; if the expenses for metal are 20-30% of cost in car industry then car industry has not more than 5% of sales of metallurgists. It means that the Russian car plants will lose for sure the conflict with metal plants, the experts suppose. If AvtoVAZ will accept the prices growth for metal by 30% then it will insignificantly affect on its products price, as it will increase within 3-5%, the analysts think. But if we take into consideration the tariffs growth for the services of monopolies (according to the forecasts of Uralsib, the electricity will rise in price by 15-20%, railway tariffs by 9-10%, gas by 15%), then carmakers will have to shift the price increasing for steel on consumers. AvtoVAZ has already announced that it will increase prices of cars by 3,5% in case of car sheets become more expensive.