Automotive sector

An Expert's View about Automobile in Russia

Posted on: 30 Nov 2012

The Russian Government will spend GBP 116.8 billion on developing the automotive industry by 2020.

Automotive sector in Russia The Russian Government will spend GBP 116.8 billion on developing the automotive industry by 2020. Market overview Russia is the world’s fastest-growing automotive market today, and is one of the fast emerging automotive component markets in Europe In April 2010, new RF Automotive Industry Development Strategy up to 2020 was approved (Resolution No.319 of 23 April 2010). The Strategy identified development scenarios both for the automotive sector and auto-components sub-sector: ξ re-structuring and modernisation of auto-components sector ξ horizontal specialisation of auto-component suppliers ξ localisation The Government intends to invest about £116.8 billion until 2020 under this strategy into the Automotive sector. According to forecasts, the Russian Automotive market may come up to the 6th place among the Top-10 world markets outputting 4 million vehicles annually by 2020. A growing niche sector is Motorsport – with Formula 1 to take place in Russia between 2014 and 1020. Key opportunities The Automotive sector in Russia is gradually developing and there are number of opportunities existing for you in Russia: Short term: Aftermarket spare parts, cosmetics and services, OEM, T1/T2 components by distribution and dealership directly of via local partners; Medium term: technology partnership with OEMs, OE manufacturers, T1, T2. This opportunity responds directly to localisation policy, i.e. production modernisation (technology, engineering, design, equipment, testing facilities, quality check) and quality components manufacturing. Long term: JVs, manufactory / assembly set up for localizing the production and improving the product quality. Government supports ‘Partnership’ scenarios for production of: differentials, constant-velocity ball joints, supports, tie rods, unions, suspension, breaks, exhaust, steering, anti-skid and security systems, seat components, generators, starters, drives, switches, instruments, door, air-conditioners, e-control systems, precision welded tubes, etc Niche sectors: motorsport and high-performance vehicles, with particular focus on body lightning, powertrains, aerodynamics, cooling systems, overall vehicle performance improvement. We should also mention here F1 (currently there are opportunities existing in training, competition organisation, promotion, and management). Strategic sectors: Russia supports the following developing areas: Euro 4, Euro 5 diesel engines, hybrid technologies, composite, alternative fuels, energy efficiency, ITS, EVs, E-infrastructure. Russia expertise in these areas is low, therefore foreign advice and assistance is much appreciated. F1 business opportunities for the UK companies cover several sectors, from infrastructure design and engineering services, security, project management (organisation, promotion, educational activities), sport venue fit out (plant and equipment, seating, surfacing, lighting, IT), through to event delivery (event management, media signage, temporary overlay, crowd control, stewarding and personnel training, broadcasting, promotion and branding), hospitality (staff training) and catering. Latest export opportunities in the Automotive sector Latest export opportunities in Russia Getting into the market Please note, once you identify a local trading partner in order to maintain the business relationship effectively you will be expected to: ξ Provide sufficient and clear information (preferably in Russian) about your company, the products and services offered; the price lists; ξ reference of successful operation in Russia or CIS (if available); ξ obtain your products/services conformity to the Russian State standards GOST; ξ In case your local partner does not provide equipment servicing, be ready to set up a Technical Service Centre or agree with an existent one Offer technical support/staff training (preferably, if the cost is included in further equipment purchase contract) to identify the investment need tailored to the type of products. ξ visit the market for face-to-face meetings (always with the interpreter) in order to have successful business in Russia ξ When working with state companies/governmental bodies be ready to participate in tenders in Russian and respond t within 2 weeks More about doing business in Russia Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits through our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ξ Svetlana Bukanova, Senior Trade & Investment Adviser, British Embassy Moscow; Tel: +7 495 956 7452; Email: ξ Olga Makarchuk Team Leader, British Consulate General St.Petersburg; Tel: +7 812 320 3223; Email: Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events in the Automotive sector Major Events ξ AutoInvest , 13-15 February 2013, St.Petersburg, Russia ξ Cross-Country Vehicle 2013, 21-24 February, Moscow, Russia ξ Classic Car Show (retro saloon) 07-10 March 2010, Moscow, Russia ξ ITS Congress , 12-14 March 2013, Moscow, Russia ξ Auto World 2013, 03-07 April 2013, St.Petersburg, Russia ξ Moscow Tuning Show, 25-28 April 2013, Moscow, Russia ξ AUTOINDUSTRY 2013, 15-17 May, Samara, Moscow ξ MotorExpoShow 2013, 23-26 May 2013, Krasnoyarsk, Russia ξ AutoSib 2013, 06-09 June 2013, Novosibirsk, Russia ξ ELECTROMOBILIADA 2013, July 2013, Moscow, Russia ξ Automechanika & MIMS, 26-29 August 2013, Moscow, Russia ξ INTERAUTO 28-31 August, Moscow, Russia ξ AUTOCOMPLEX 2013, 23-25 October, Moscow, Russia ξ MOBI (MOBI – Business, MOBI-Show, MOBI-Safe), 24-27 October 2013, Krasnodar, Russia Useful links More about OMIS and other UKTI services for exporters
Posted: 30 November 2012

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