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Assembly and Localization of Foreign Cars in Russia - 2011

Assembly and Localization of Foreign Cars in Russia - 2011

Date of issue: 19.07.11

Format: PDF, 49 pages, language - ENGLISH

Price: 1310 

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AUTOSTAT analytic agency has prepared updated marketing report “Assembly and Localization of Foreign Cars in Russia”. Today this subject is actual as never as most foreign car manufacturers, operating under industrial assembly regime are coming to the localization control date. Moreover Russian government introduced new requirements for the companies, intended to expand their production in our country under industrial assembly regime.

Thereby this report includes information on foreign car assembly and localization in Russia, characteristics of market players with their local suppliers. Moreover, the appendix contains a list of global suppliers of components for car models assembled or planned to be assembled in the Russian Federation.
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.

It is significant that despite more than twice increase in domestically produced foreign car sales last year, as per the results of the period from January till April 2011 their sales dynamics is still highly positive – 89.9% up to 288,100 cars. At that sales of domestically produced foreign cars have exceeded imported car sales, which grew by 57.9% up to 232,600 cars for the same period. We should also mention that over 60% of domestically produced foreign cars are manufactured under industrial assembly regime. At that new rules of industrial assembly, which came into effect in February 2011, are to promote growth in foreign car production in our country.
The agreement with Ministry of Economic Development of the Russian Federation about new industrial assembly regime was signed by four car manufactures: 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 with previous terms, having used unfulfilled agreement of its subsidiary Saveko, but undertook liability to extend production (120,000 cars per year) and to construct an engine plant. Moreover, Mazda signed agreement about industrial assembly with previous terms under the Government instructions as the company will construct a plant in socially important area – the Primorye Territory.
At that Ministry of Economic Development claims that according to the legislation in force every car manufacturer can have this opportunity in some cases, particularly – placement of production in a socially problem area such as Far East. At the same time foreign car manufacturers are launching new car plants in Russia. 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 Ñ-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.

The report is prepared with an office research method. The major information sources are our own databases, Supplier Business analytic agency data as well as the information obtained from the market players directly. All data, presented in the report is clearly organized and complied in tables and illustrated with graphs and diagrams if necessary.

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News on this topic

  • 29 march 2023Every third passenger car in the Russian parc has a domestic origin

    Against the background of the active import of foreign cars of various origins to Russia, the experts of analytical agency "AUTOSTAT" decided to see how many and what kind of cars we have today in the country's car parc. According to the agency, as of January 1st, 2023, there were about 45 million 391.6 thousand cars in the Russian Federation.

  • 25 may 2022GAZ Group localizes a light diesel engine in Russia

    At the site of the Gorky Automobile Plant, the serial production of products from the new foundry of the GAZ Group began. The NLZ will become the basis for the localization of a light diesel engine, which has not been produced yet in Russia, the press service of the GAZ Group reports.

  • 20 april 2022The share of sales of foreign cars is growing in Russia

    According to the results of the 1st quarter of 2022, foreign cars have 75.7% of the total sales of new passenger cars and LCVs in Russia. Experts of the agency "AUTOSTAT" noted that a year ago this figure was 74.3%, i.е. was 1.4 percentage points lower. The increase in the share of foreign cars is explained by the fact that their sales during the reporting period fell less than the whole market.


Press releases on this topic

  • 16 november 2011Every third LCV in Russia is foreign

     AUTOSTAT analytic agency prepared marketing report “Structure and forecast of commercial vehicle parc: light commercial vehicles (LCV), trucks (CV and HCV) and buses (BUS)”.  On 1 January 2011 commercial vehicle parc in our country was 7.34 million cars. About a half (48.2%) of the parc were light commercial vehicles (3.54 million units), a little less number (46.7%) belong to trucks (3.43 million units), and the rest 5.1% belong to buses (0.37 million units)