Automotive sector in Russia

An Expert's View about Parts and Accessories for Automobiles in Russia

Posted on: 2 Sep 2010

Latest overview of market potential for the automotive sector in Russia.

Automotive ? Russia Sector Report AUTOMOTIVE Russia Produced by: Antonina Firsova, Trade and Investment Officer, Moscow Last revised September 2009 Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation and Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published September 2009 by UK Trade & Investment. Crown Copyright © Automotive ? Russia Table of Contents OVERVIEW 3  OPPORTUNITIES 4  CHARACTERISTICS OF MARKET 5  GOVERNMENT PLANS AND PROGRAMMES 17  KEY METHODS OF DOING BUSINESS 18  MORE DETAILED SECTOR REPORTS 18  PUBLICATIONS 19  EVENTS 20  CONTACT LISTS 21  ATTACHMENT A. KEY RUSSIAN AUTOMOTIVE MANUFACTURERS 22 Page 2 of 27 Automotive ? Russia OVERVIEW In crisis times Russia may not be the fastest growing market anymore but it is still a market with many opportunities. Simon-Kucher&Partners, Russian Automotive Forum For the first half of 2008 the Russian automotive market was developing dynamically with car sales reaching more than 1.5 mln, 35% higher than in January-June 2007. But in August 2008 the global financial crisis began to hit the Russian economy. First of all it affected the banking system with dramatic reduction of loans. Since about 40-45% of cars were bought in Russia on loans, car sales immediately dropped. The general macroeconomic indicators for 2008 as well as total car sales still showed steady growth: GDP amounted to $1.76tn, the GDP growth was 5.6%; the total car sales constituted 2.8 mln. However, the first half of the year was distinctly different from the second half and it is increasingly complicated to forecast future developments. According to the World Bank Russia?s real GDP in 2009 is likely to contract about 7.9%. Unemployment could rise to 13% and poverty to 17.4%. And Russian middle class is likely to shrink ? by about 6% - from 55.6% to 51.2% (a decline of 6.2 mln people). Heavy job losses and salary cuts have forced many Russians to delay auto purchases, while many banks have refused to give them affordable car loans due to the global credit crunch. Sales of passenger cars and light commercial vehicles in Russia fell 49% on the year to 763,926 units in January-June 2009. Major Russian car manufacturers and assembly facilities closed their conveyors several times since autumn 2008. Automobile production plunged 62.4% in the first half of 2009 compared to the same period of 2008. For the full year 2009, total car sales in Russia are expected to come to between 1.3mn and 1.6mn vehicles, a decline of between 50% and 60% on 2008. Nevertheless market participants believe in the Russian potential and some even expect growth to start again as early as 2010. Middle and longer-term perspectives of the Russian automotive market are still assessed as positive. Experts expect car sales to return to the pre-crisis level in 2012. Multinational corporations with assembly facilities also see good opportunities in the market. Such global companies as Suzuki, PSA/Peugeot-Citroen and Hyundai are still planning to construct assembly facilities in Russia, they have delayed their plans but have not yet cancelled them. And Nissan launched its Russian assembly line in June 2009. The low average number of cars per one thousand of people (200 cars) as well as old car fleet (about 50% of cars are older than 10 years) and good potential of income growth are among the factors attracting foreign companies to Russia. The latest statistics are also positive. In July 2009 Russian industrial output fell 10.8% year-on-year which is less than was expected and industry even grew 4.7% in July as compared with June 2009. This is partly explained by large government stimulus package, gradual recovery of oil prices and lower inflation. The Russian government has also undertaken significant measures supporting local car manufacturers including higher import duties on cars. This measure as well as lower purchasing power of the Russian population is likely to affect the market structure with higher proportion of cars manufactured and assembled in Russia. Page 3 of 27 Automotive ? Russia OPPORTUNITIES Despite a fall in the market seen so far in 2009, forecasts for the future car market in Russia remain confident. A 3mln unit market is forecast in either 2012 or 2013. And the Russian market still offers business opportunities for foreign companies: ? Short-term there are opportunities in the spare parts market. Purchases of new cars are delayed but maintenance and repairs continue. ? Significant technology gaps exist in Russia. Russian companies are still looking for new ways of improving their products: alliances of AvtoVAZ and Renault, possible assembly of Opel cars at the Russian GAZ facilities. ? Mobility of the Russian population is predicted to grow leading to higher demand in vehicles. ?Post-Soviet? generation is likely to strive greater for success with more flexibility in selection of city and place of work thus increasing the number of business and vacation travel. Despite the last 5 years Russia still has a low car ownership per capita (40% of EU average) and an elderly car parc. ? Russian automotive supply base remains underdeveloped. Even during the crisis foreign assembly facilities continue to look for quality components suppliers in Russia. JVs between Russian and foreign companies are seen as the way to develop this sector in Russia. ? Opportunities also exist in a number of specific areas like motor sport where British expertise is recognized in Russia and in kart racing which has taken off in Russia in the last years and has become a popular sport. Risks and Challenges ? At the present moment unstable business environment presents a significant challenge for the companies. The fall in car sales and uncertain future make it difficult to plan activities. ? Russia?s policy is aimed at supporting local manufacturers/assembly facilities making creation of a JV with a Russian partner one of the most feasible options of entering the Russian market. However, finding a suitable partner and building a joint business may present difficulties. ? Russian bureaucracy involving obtaining many licences and permissions may result in added additional costs and slow down the process for many companies. Western suppliers should work with a knowledgeable adviser to set up a small team to identify the opportunities and risks and to understand current investment and business trends. NB: UKTI publishes international business opportunities gathered by our network of British Embassies, High Commissions and Consulates worldwide. These opportunities appear in the Opportunities portlet on the relevant sector and country pages on the UKTI website. By setting up a profile you can be alerted by email when relevant new opportunities are published. New or updated alert profiles can be set in My Account on the website. Page 4 of 27 Automotive ? Russia CHARACTERISTICS OF MARKET Russian Passenger Car Market In 2008, the Russian car market still demonstrated a growth rate of 19.2%, increasing in value to about $70bn. Russian passenger car market, $bn 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sales of 5.1 8.6 11 12.8 16.8 23.6 34 53.5 70.3 passenger cars, $bn Growth, % 9 68 27 17 32 41 44 57 19.2 Source: Autostat In volume terms, the market increased by 15% YoY, to 3.2mn cars in 2008. Russian passenger car market, ?000 units 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sales of 1069 1401 1458 1475 1514 1762 2052 2801 3216 passenger cars, '000 units Growth, % 2 31 4 1 3 16 17 34 15 Source: Autostat In 2008 Russia occupied sixth place among global markets in terms of new passenger car sales. The growth trend was, however, reversed by the financial crisis. The new imports segment remained one of the main drivers of the Russian market?s growth in 2008. The growth rate amounted to 21.8%, with 1,468,900 sold units. The Russian-made foreign-branded cars segment increased by 39.3% to 611,900 units in 2008. The used imports share rose by 36.2% to 531,000 units. The Russian cars segment declined in 2008 by 7.4% to 662,400 cars. In 2008, the new imports segment had a 44.9% share of the market in volume terms, with Russian cars accounting for 20.2%, and Russian-made foreign-branded cars for 18.7%. Used imports segment again increased to 16.2% in 2008 but this segment has contracted sharply in 2009 due to the increase of customs duties by about 25-30%. Page 5 of 27 Automotive ? Russia Russia passenger car market breakdown, 2001-2008, volume shares 100% 20.2 90% 26 37 Russian cars 80% 47 58 60 18.7 70% 58 16 67 Russian-made 60% 13 foreign brands 50% 9 1 new imports 40% 44.9 4 8 7 43.8 36 26 11 30% 6 18 used imports 20% 34 27 25 10% 18 16.2 15 14 14.2 0% 2001 2002 2003 2004 2005 2006 2007 2008 Sources: Autostat and Autobusiness In 2008, the average price in the new imports segment was about $26,500, nearly 3x the average price of Russian passenger cars (about $10,000). Used import cars and Russian-made foreign cars cost about $17,500 and $15,000, respectively, on average. Sales of foreign-branded cars in Russia rose 26% on the year to 2.081 million units in 2008. The most popular foreign automobile brand in Russia was Chevrolet with 235,466 cars sold. Hyundai ranked second among the most popular foreign car brands in Russia with 192,719 cars sold in the period, and Toyota ranked third with 189,966 cars sold. The most popular foreign car model in Russia in 2008 was the Ford Focus with 93,496 cars sold. The Chevrolet Lacetti ranked second with 82,656 cars sold, and the Renault Logan ranked third with 74,300 cars sold. In terms of classes Class B cars (3.6-4.1 m in length), class C cars (4-4.5 m) and sport utility vehicles (SUV) are the most popular categories in Russia, particularly the Lada Classic (class C). Russian brands occupy the low price segment in each class, except classes D and F, where they are not represented. Page 6 of 27 Automotive ? Russia Passenger car production increased only 13.6% reaching 1,468,677 units in 2008. Russian passenger car production, '000 units 1,600,000 1,400,000 1,200,000 1,000,000 Foreign-brand cars 800,000 Russian cars 600,000 400,000 200,000 0 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 9 9 9 9 0 0 0 0 0 0 0 0 0 9 9 9 9 9 0 0 0 0 0 0 0 0 0 1 1 1 1 1 2 2 2 2 2 2 2 2 2 Source: ASM-Holding and Autobusiness Russian passenger car production decreased in the first half of the 1990s, and after a brief recovery, slumped in 1998. After a peak in 2001 the Russian car manufacturing was declining. AvtoVaz (which accounted for 55% of all passenger car production in Russia in 2008) is the largest producer of Russian passenger cars, followed by Izhavto (also LADA brand 4%), UAZ (2%) and GAZ (1.5%). Foreign-branded passenger car production took off in 2002, when the General Motors (GM)-AvtoVaz joint venture (JV) began to produce the Chevrolet-Niva SUV, and Ford?s Vsevolozhsk car plant started to assemble the Ford Focus. As can be seen from the diagram foreign-branded production significantly increased during the last 3 years. In 2008 foreign assembly plants produced 0.593mn units, an increase of 29% over 2007. The main driver of Russian-made foreign-branded production is regulatory stimulation. In 2005, the government adopted Resolution 166 on industrial assembly, which gave foreign car producers favourable terms for production in Russia. Under the regime of industrial assembly, a declared amount of car components can be imported at 0-5% import tariff rates. Therefore, foreign carmakers need to organise full-cycle production (fabrication, paint coating and assembly work or complete knock-down [CKD] assembly) of at least 25,000 units per year in Russia, and localise 30% of components. Similar to Decree 166, Decree 566 will bring down import duties of subcomponents to 0-5% for five to seven years, depending on the complexity of component manufacturing. Likewise, there will be localisation obligations. According to Decree 566 a number of components used for the manufacture of motor vehicle units (internal combustion engines, gearboxes, driving axles, seats, safety bags, etc.) can be imported without the payment of import customs duty or with duty payable at a rate of 5%. An extended list of such components (now over 130 items) was recently established. The list of motor vehicle units may be expanded by application to the Russian Ministry of Economic Development (MED). Page 7 of 27 Automotive ? Russia The government has concluded investment agreements with foreign companies (for greenfield construction in Russia), JVs (Avtoframos, GM-AvtoVAZ), and Russian owned companies (Izhavto, Severstal-Auto), some of which have already begun assembling foreign models at existing production sites. All investment agreements on industrial assembly between the Russian government and automakers had been completed by 10 Nov 2007. Total planned investment is estimated at more than $3.7bn. In autumn 2008 GM opened its plant in St. Petersburg. In June 2009 Japan's Nissan Motor Company followed opening a car assembly plant in a St Petersburg suburb. Investment in the project is estimated at $200 million. The facility will manufacture the Teana and X-Trail models, 50,000 autos a year each. Nissan is also considering producing Renault cars at its plant in St. Petersburg. A number of new projects are still in the development phase: New automotive projects in Russia Company Project description Comments Samotlor-NN, Nizhny In July 2007 Samotlor-NN formed a JV with Iveco. The plant opening Novgorod region The project is called Saveco, the objective is to was scheduled for Q1 produce light commercial vehicles Iveco Daily in 2009 but was later Samotlor-NN specialises Russia ? trucks, minibuses and special purposes delayed due to in various modifications motor transport. difficult market of passenger transport Design capacity is 25,000 cars, total investments conditions. including medical are estimated at 50 mln euro. transport and buses Bogdan, Nizhny In 2005 Ukranian corporation ?Bogdan? and Novgorod region Zaporozhsky automotive plant announced their intention to organise car production in Russia. In 2006 the groundbreaking ceremony took place at the new plant. However, in 2008 Zaporozhsky automotive plant withdrew from the project leading to its freeze. According to the latest reports ?Bogdan? decided to continue with the project and start construction in the second half of 2009. Design capacity is 120,000 passenger cars and 6,000 Bogdan buses. The corporation plans to produce C class passenger cars under its own brand. According to some reports the car is based on a European platform improved by Porsche Design. However, there are no official confirmations of this. Suzuki, St. Petersburg Suzuki planned to build the plant in the Shushary According to Sigeru industrial zone outside St. Petersburg and open it Sedzi, general in 2010. The plant was to produce the Grand director of Suzuki Vitara and a new SX4 crossover model. The plant Auto MFG Rus, was to produce up to 30,000 Suzuki cars Suzuki has annually and eventually increase production to postponed the 50,000 cars per year. construction of its Suzuki and its Russian distributor Itochu Corp automotive plant in signed an "industrial assembly" deal with the Russia (reported by Russian Economic Development Ministry as well Interfax, on June 10 as a protocol of intent with the City of St. 2009). Petersburg to build the factory in the region on Page 8 of 27 Automotive ? Russia June 8, 2007. Suzuki and Itochu were to invest 14 billion yen ($115 million) in the plant on a 50:50 basis. Great Wall, Elabuga In December 2008 Great Wall Motor signed an agreement with its Russian distributor ?Irito? to assemble (including welding and painting) cars in Russia. Maximum design capacity of the plant is 50,000 cars annually. Production is due to start in 2009. Hyundai, St. Petersburg Hyundai launched construction on the plant in A group of South June 2008. Investment in the plant is to total Korean companies $394.2 million. The plant will initially have that make auto parts production capacity of 100,000 cars per year, but for Hyundai Motor Co this amount is to eventually be expanded to also broke ground on 200,000 cars per year a manufacturing plant near St. Petersburg on April 23. Production at the new facility is slated to begin in the second half of 2010. The plant will have capacity to produce 150,000 items a year initially, which will ultimately rise to 400,000 items a year. PSA/Peugeot-Citroen In May 2008 PSA/Peugeot-Citroen and Mitsubishi Production start was and Mitsubishi, Kaluga signed an agreement on forming a joint venture scheduled for the www.psa-peugeot- in Russia to produce Mitsubishi, Peugeot and first half of 2010 but Citroen cars. due to the financial Investment is evaluated at 470mn euro. The full- crisis the investment cycle plant has design capacity of 160,000 cars programme can be per year. modified. Source: Company data, Autostat Page 9 of 27 Automotive ? Russia Fleet Car penetration in Russia (about 300 cars per thousand people in 2008) is very low, and is far below the 450- 600/thousand level common in western countries. The number of passenger cars more than doubled over 1993-2008, and reached 32mn units in 2007. According to Rosstat, about 95% of the passenger car fleet is owned by individuals. However, old passenger cars (>10 years) account for 45.9% of the fleet. The regions have a slightly older fleet, while the Moscow fleet is much newer. According to Autostat, the average age of a passenger car in Russia is 12.2 years, versus eight years in Europe. Therefore the fleet increasingly needs replacement, further boosting passenger car demand. During the economic growth, demand in the new passenger car market had been shifting from the low-price segment (less than $10,000) to more expensive segments, thanks to the development of consumer credit and increasing disposable incomes. Credit crunch and difficult economic conditions have changed this trend with more attention of consumers focused on budget options. In monetary terms new foreign cars segment amounts to 80% of the market while Russian brands represent only 10%. The Used Car Market The used car market was steadily growing in Russia. In 2008 about 410,000 used cars were exported to Russia. The market value constituted $7.17bn. However, in the first quarter 2009 the used cars import decreased by nearly 20 times: 4,400 cars were imported as compared to about 80,000 cars in the same period of 2008. In 2008 the share of used cars was about 20% of the total import. In the first quarter 2009 the share declined to only 3%. This is explained by introduction of increased import duties on cars in January 2009. In July the temporary 30% import duty was turned into a permanent one. In Europe approximately half of new cars are sold with trade-in. The dealer buys the used automobile, redeeming it from the customer, and the vehicle is put on the balance sheet of the dealership. The value of the used car is credited towards the cost of the new vehicle, and the dealer offers the used car for sale with a dealer guarantee of its technical condition. In Russia this scheme is only starting to work because following the sale of the used vehicle the dealer must pay 18% VAT as a legal entity, whereas VAT is not applicable in transactions between private persons. Therefore dealerships use commission transactions. The dominance of used car transactions between private persons results in unreliable pricing which neither sellers nor buyers benefit from. Sales of foreign cars and light commercial brands Overall sales of passenger cars and light commercial vehicles (LCVs) in Russia fell 49% on the year to 763,926 units in January-June 2009. SALES OF FOREIGN BRANDS IN RUSSIA IN Q1 2009/2008 Brands Q1 2009 Q1 2008 % Chevrolet (incl GM- 30,268 58,498 -39% AVTOVAZ JV) Ford 29,956 41,499 -28% Nissan 22,927 37,253 -38% Hyundai 21,391 44,054 -51% Page 10 of 27 Automotive ? Russia Toyota 19,356 35,825 -46% Renault 15,011 24,303 -38% Kia 13,710 21,101 -35% Mazda 13,176 17,0941 -23% Opel 11,945 23,479 -49% Daewoo 11,692 23,941 -51% Volkswagen 10,935 7,507 46% Peugeot 9,981 8,403 19% Skoda 9,826 9,082 8% Honda 9,218 15,445 -40% Mitsubishi 6,042 21,296 -72% Suzuki 4,407 9,890 -55% BMW 4,011 4009 0% Fiat 3,915 4,515 -13% Audi 3,302 3,880 -15% Citroen 3,194 2,000 60% Land Rover 3,031 4,612 -34% Subaru 2,990 4,296 -30% Volvo 2,714 4,238 -35% Mercedes-Benz 2,360 3,388 -30% SsangYoung 2,063 3,000 -31% Infinity 1,877 1,102 70% Lexus 1,460 2,705 -46% Volkswagen 1,406 1,754 -20% Commercial Vehicles Chery 957 5,361 -82% Geely 915 - - Great Wall 833 2,607 -68% Lifan 618 662 -7% BYD 606 920 -34% Cadillac 472 308 53% Mercedes-Benz Vans 435 730 -40% Jaguar 366 285 28% Hummer 309 191 62% Porsche 299 390 -23% Seat 292 232 26% Dodge 186 938 -80% Mini 173 202 -14% Jeep 161 795 -80% Iran Khodro (IKCO) 108 681 -84% Saab 100 249 -60% Chrysler 70 406 -83% Alfa Romeo 37 74 -50% Isuzu 22 - - Total 279,123 607,047 -46% Passenger car market forecast For the full year 2009, total car sales in Russia are expected to come to between 1.3mn and 1.6mn vehicles, a decline of between 50% and 60% on last year. In January-June 2009, car sales in Russia fell 50% on the year to 743,000 units. In monetary terms, car sales fell 62% on the year to U.S. $12.8bn. Page 11 of 27 Automotive ? Russia Due to unstable situation forecasting is difficult. However, the majority of specialists believe that the current crisis will last for several years. Therefore no short-term growth of the automotive market can be expected with sales returning to the pre-crisis level in 2012. The crisis will also significantly influence the market structure. Due to the ruble vs euro/dollar depreciation as well as new customs duties on imported cars analysts expect that sales of Russian/ Russian-made foreign cars and new imports will be redistributed. Simultaneous increase of prices for new imports and decrease of people?s real income can lead to increased demand in locally produced cars, both of Russian brands and Russia-made foreign brands. According to Autostat market share of the Russian brands can reach 30% already in 2009, the new imports market share is likely to be about 35%, a decrease of 53% from the 2008 level. The average car price will be significantly lower. The Commercial Vehicle Market The Russian commercial vehicle market was hit even harder than the passenger car segment by the current crisis. 260,000 trucks were produced in 2008 that represents a decrease of 11.3% over 2007 results. Structure of the commercial vehicle market according to the full weight in 2008, % less than 3.5 27% tons 14% 59% 3.5 - 12.0 tons more than 12.0 tons In 2008 54.8% of the commercial vehicle market belonged to Russian brands, 22.7% to new imports, 17.4% to the used imports and 5.1% to foreign brands produced in Russian. The main foreign brands produced in Russia include: Isuzu, Fiat Ducato, Hyundai Porter, Iveco, Volvo, Yuejin. In the first half 2009 production of trucks plunged by 72.5% to 39,400. Commercial Vehicle Production, 000 units, % 2002 2003 2004 2005 2006 2007 2008 173,9 194,7 202,2 207,3 248,7 287,9 260,0 -0,3% +11,9% +3,8% +2,5% +19,9% +15,8% -11.3% Source: Autostat Page 12 of 27 Automotive ? Russia The Bus Market In 2008, the Russian bus market decreased by nearly 28% and reached 67,122 buses. Major Russian bus producers PAZ, LiAZ, GolAZ, KAVZ belong to GAZ Group. In 2008 GAZ Group remained the market leader with a 35.1% share of the market (in volume terms). Manufacturing of foreign-branded buses in Russia began in 2003. By 2008 foreign brands produced in Russia have 10% of the Russian market share. The brands manufactured in Russia include Ford Transit, Mercedes Sprinter, Iveco Daily, VW, Maxus, Real, Andare, Omnilink, Omniline, Hyundai County, Hyundai Aero Town. Bus Production, 000 units 2002 2003 2004 2005 2006 2007 2008 67,239 76,530 76,184 78,610 81,356 93,886 67,122 +13.8% -1.5% +3.2% +3.5% +15.4% -28.5% Source: Autostat Fleet The bus fleet in Russia has been increasing 3-4% annually. In 2008, it numbered nearly 900,000 units. However, 45% of all buses are older than 10 years and another 27.5% are between 5 and 10 years old. The data indicate that there is demand in new buses. The demand may be delayed by the current market conditions but the general trend is likely to be positive once the market recovers. Agricultural Vehicles in Russia The Russian agricultural sector should be reformed and modernised in the near future as almost 70% of farming machinery has been in use for over 10 years, and within the next two to three years Russia will be faced with the need to dispose of approximately 20,000 ? 25,000 agricultural machinery units, as they will reach the end of their useful life. Current estimates indicate that Russian farmers need approximately 17,000 combines and 45,000 tractors per year for the next five years. In 2008 the area of the agricultural land exceeded 130 mln hectares. According to industry analysts, the annual market demand in new agricultural machines and equipment is approximately £1.5 ? 1.75 billion. The recession, however, brought about dramatic changes in the investment and production plans of agricultural companies with overall production decrease reaching nearly 70% in the first half of 2009. Agricultural vehicles production, units Vehicles 1H 2009 % to 1H 2008 Tractors 3,700 57.2% Combine harvesters 4,600 99.8% Motor blocks 91,500 110.6% Source: Russian Federal Customs Service At the same time production of foreign-branded grain combine harvesters in January-May 2009 increased 7.37 times reaching 1,378 units. Foreign-branded combine harvesters are assembled at OAO Bryanskselmash and OOO Klaas. Among domestic manufacturers the following three companies are indisputable leaders: Page 13 of 27 Automotive ? Russia ? ?Traktornye Zavody? (Tractor Plants Concern ? unites Lipetsk, Vladimir, Onezhsky Tractor Plants, Promtractor, and Kurganmashzavod) and also incorporates Agromash Holding (Krasnoyarsk Combine Plant, Volgograd Tractor Plant); ? Industrial Union ?Novoye Sodruzhestvo? (New Alliance ? unites Rostselmash, Morozovskselmash); ? Kirovsky Zavod (St. Petersburg Tractor Plant, Kirovets-LandTechnik). These major players control nearly 65% of the domestic tractor market and approximately 90% of the combine harvesters market. However, the wear and tear of production assets at Russian plants reaches 75-80%. In order to compete with foreign suppliers, Russian producers will need to upgrade their facilities and to develop a full range of higher quality agricultural equipment. In crisis times this task becomes even more complicated and the government undertook some measures to support the agricultural vehicles industry: - Increase of the Rosagroleasing capital stock by 25 bln rubles ($0.8 bln), which will be used among other goals for purchasing agricultural vehicles; - Subsidies for interest rates of loans used for upgrade of production facilities; - Introduction of an import duty of 15% on foreign agricultural vehicles. The road-building machines market According to the latest data of the Federal Statistics Service there has been further decline in the production of road-building machines in the first half of 2009. Vehicles 1H 2009 % to 1H 2008 Excavators 439 12.5 Bulldozers and pipelayers 1,221 39.9 Motor graders 190 25.1 Loading equipment 148 22.3 Source: Federal Statistics Service The most significant Russian manufacturers of road-building equipment are: Promtractor, Chelyabinsk tractor plant ? Uraltrak, Volgograd tractor plant, Dormash, Sareks, Tverskoy Excavator, Donetsk Excavator, Zlatoussky Excavator Plant, Dmitrovsky Excavator Plant, Omsk Plant of Transport Machine- Building, Elabuga Automotive Plant. Road infrastructure in Russia is relatively underdeveloped compared with the world?s leading industrialised nations, with road capacity (road km/person and road km/km 2) 2-25x times lower than in other developed, and a number of developing, countries. The poor condition, and in some cases absence, of roads in Russia are a substantial drawback for the development of the country?s economy. Economic losses from poor road quality are estimated by the government at about 3% of GDP. According to Rosavtodor and Ministry of Transport statistics, only 37.8% of federal roads and 24% of regional roads meet regulatory requirements. Currently, 7,900 km (17%) of federal roads are overloaded. 19,900 km (42%) of roads are insufficiently smooth, and 25,800 km (55%) of federal roads lack sufficient strength. Page 14 of 27 Automotive ? Russia Current state of federal motor road network 30 25.8 25 19.9 18.4 20 15 7.9 10 3.9 5 0 Roads with high Unsmooth Roads with Overloaded Roads with incidents of roads unsatisfactory road parts unsatisfactory traffic accidents hitching pavement properties of strength pavements Source: Ministry of Transport According to the Federal Programme on Automotive Roads, in 2010-2015, $400bn will be spent on road building and reconstruction ($80bn/year). This increase in road construction will certainly create significant potential for the road-building machine market and trucks. The program envisages the launch of 4,700 kilometres of railroads, construction and reconstruction of 7,300 kilometres of federal roads and 116 runways. The implementation of the program will also help increase cargo transit across Russia to 42.7 million tonnes in 2015. The Automotive Components Industry in Russia 95% of the 200-plus Russian car component manufacturers supply Russian passenger car producers. The level of vertical integration of the Russian automotive component industry is almost 80%. A mere 1% of Russian components suppliers have export activities. The conventional tier division is still not clearly present. On average 25% of the supplier base is raw material producers, and the rest are component manufacturers. The situation has to change due to growing foreign-brand production and attractive volume of this market segment. Foreign-brand production requires increasing numbers of high-quality components. Under a 30% localisation restriction for CKD foreign assemblers, this should stimulate the Russian automotive components industry. The total volume of the market of automotive components (for passenger and commercial vehicles) and spare parts in Russia in 2008 reached $46.45 billion. Almost a quarter of this sum falls on the primary market: 24% and $11.05 billion. The secondary market is much bigger: its estimated capacity is about $35.4 billion (76%). Thus, the total volume of the market of auto components grew 42% in money terms compared to the level of 2007. New international players are coming to Russia often forming JVs with Russian partners. Page 15 of 27 Automotive ? Russia * Supplier presence in Russia Source: Association of European Businesses In quality terms, the Russian companies are still lagging way behind their western counterparts. The common defect measure according to the industry standard ISO 16 949 is below 70 parts per million (ppm) compared to over 1,000 ppm being the industry average in Russia. Current Developments Decree 166 has clearly been a successful government incentive to attract foreign OEMs. However, the customs duty break on the import of a number of automotive components put local suppliers at a substantial disadvantage. The latter legislation gap was amended, and as of recently an extension to the decree (566) was recently passed broadening the component base to over 130 (from 60) and allowing for component manufacturers to enjoy a favourable customs duty regime for the import of subcomponents. Similar to decree 166, decree 566 brings down import duties on subcomponents to 0-5% for five to seven years, depending on the complexity of component manufacturing. Foreign suppliers have been implementing various entry strategies. Many more joint-ventures have been established between international and Russian component manufacturers than we have been witnessing in the case of foreign OEMs, who preferred to go for greenfield investments. The former include, among others Delphi, Johnson Controls International, Bosch, Siemens VDO, ZF Friedrichshafen, Cummins, Stadco, Faurecia, Hayes Lemmers, Iskra, TPV, and others. Some major OEMs, like Toyota, Hyundai and VW, have opted for bringing in their traditional suppliers to preliminarily arranged supplier parks next to their own assembly facilities. * The list is not exhaustive Page 16 of 27 Automotive ? Russia Future Trends In early 2008 the future trends of the components sector were described as exciting and experts expected more foreign companies to enter the Russian market. The global crisis has affected plans and forecasts of market participants. A lot now depends on the general economic trends. If the country starts to overcome the crisis during 2009 the total capacity of the component market can already reach a point of $55-56 billion in 2010. In case the economy will be reviving during a longer period, the predicted level will be reached only by 2012. GOVERNMENT PLANS AND PROGRAMMES Due to the current crisis the majority of government plans and programmes are targeted at helping the companies fight falling sales and difficulties in obtaining financing. The Russian government has developed a program of crisis support to the national automotive industry, including the following measures: 1) Higher duties on car imports. Import duties on new cars increased by 5-10% and by 2-3 times on used imports from January 12 2009. The measure, which will force Russians to buy locally-built cars, has caused social unrest in the Far East, where nearly all cars on the roads are used Japanese imports. Import duties on new imports constitute 30% of the customs value. Customs duties on cars 3 to 5 years old are 35%. 2) Leasing support. The government will help domestic truck and commercial vehicle producers by financing leasing companies. The amount of state-sponsored leasing in 2009 may exceed $2.7b. 3) Interest rate compensation for car credits. The government will compensate two thirds of the average interest rate (13%) paid by buyers of locally produced cars priced under $11 500. 4) State shopping. The 2009 state budget will increase purchases of cars and commercial vehicles, 12.5 bln rub will be provided additionally. KamAZ and GAZ, which sell a large part of their product portfolio to the state, will benefit most. 5) State loan guarantees and bond buyback. The state may provide $2.3b of loan guarantees and buy up to $2b of corporate bonds issued by Russian vehicle makers, reducing credit exposure risk and boosting working capital. European Union Emission Standards The crisis has also affected introduction of environmental standards in Russia. The Russian st Government approved transition to the Euro-3 standard for petrol from the 1 January 2011 instead st of the 1 January 2009. According to the government decree the petrol of the Euro-2 standard will be produced in Russia till December 31, 2010. Production of Euro-3 petrol is permitted till December 31, 2011, of Euro-4 petrol ? till December 31, 2012. The Euro-5 fuel production is not limited. The deadline for the introduction of the Euro-4 emission standard itself had been postponed for two years until 2012. The government originally planned to introduce the Euro-4 standard in 2010. This means that the operation of vehicles meeting the Euro-3 standard will be permitted in 2010 and 2011. However, this permission applies only to those vehicles that are given approvals before December 31, 2009. Vehicles imported to Russia, both new and used ones, and vehicles produced domestically, but not having the above-mentioned approvals, must meet the Euro-4 standard starting in 2010. Page 17 of 27 Automotive ? Russia KEY METHODS OF DOING BUSINESS Most Russian companies will employ at least one person who can speak English, but it is best to establish initial contact by fax or email. The postal system in Russia can take a while, and is known to be unreliable on occasions. If possible, it is best to send at least some correspondence in Russian rather than English. The most effective way of establishing and consolidating business relationships in Russia is by regular face-to-face meetings. There are many ways to enter the Russian market. Establishing a representation office is a quick start for most British companies, while some SMEs prefer a cheaper start through internet communication. Commissioning a local agent can be an efficient way to access the market if the agent is experienced in relevant areas and has strong influence with potential customers. Establishing a wholly-owned enterprise can be the next step for companies to manufacture, source or sell in Russia if they can afford this route financially. A joint venture can work well if the Russian partner?s contribution is unique in terms of market access and there is a good match of each party?s capabilities. In addition, support from UKTI, BIS and other industry bodies can be an efficient first step. Services available include guidance, sector reports, bespoke market research, and setting up links in Russia. A company needs to choose the entry method carefully, according to their business strategy (i.e. selling in Russia, reducing cost for global market), financial strength, management measures and technical resources. Taking a strategic approach is the key to making the process manageable. It may be a good idea to use company aims and objectives as a basis for developing a formal Russia strategy. Using this strategy as the first signpost, it should lead to areas that require further research in order to understand where potential pitfalls lie on the road to success in Russia. Other background information on doing business in Russia can be found on UKTI?s website. Simply go to the Russia country page where you will find information on: ? Economic background and geography ? Customs & regulations ? Selling & communications ? Contacts & setting up ? Visiting and social hints and tips MORE DETAILED SECTOR REPORTS When considering doing business in Russia, it is essential to obtain legal, financial and taxation advice. A useful contact list of lawyers and other relevant professional bodies as well as further information on the automotive sector in the country is available from UK Trade & Investment. For further details, please contact: Antonina Firsova UK Trade & Investment British Embassy Moscow ?: + 7 (495) 956 7452 F: + 7 (495) 956 7480 E: Page 18 of 27 Automotive ? Russia Galina Movchan UK Trade & Investment British Consulate General in Ekaterinburg T: +7 (343) 379-49-31 F: +7 (343) 359-29-01 E: Alexander Petrov UK Trade & Investment British Consulate General St-Petersburg T: +7 (812) 320 3228 E: Research is critical when considering new markets. UKTI provides market research services which can help UK companies doing business overseas including: ? Overseas Market Introduction Service (OMIS). Bespoke research into potential markets, and support during your visits overseas ? Export Marketing Research Scheme. In-depth and subsidised service administered by the British chambers of Commerce on behalf of UKTI Contact your local International Trade Advisor if you are interested in accessing these services, or for general advice in developing your export strategy. PUBLICATIONS Analyst reports 1. Renaissance Capital, 2. Ernst and Young, 3. PriceWaterhouseCoopers. 4. International Business Strategies, research company providing international market research reports on more than 130 topics from more than 90 countries. 5., online service providing sector, company and news reports. 6. ISI Emerging Markets, delivers information, intelligence and data on over 80 emerging markets, 7. IDC. Country sector research reports. (paid service). 8. ASM-Holding. The company provides paid reports with data on the automotive market, including component sales. 9. Ladaonline. Automotive information analytical centre. Publications and News 1. Russian automotive news. 2. AUTOSTAT Agency 3. AutoBusiness ? Automotive Manufacturing Magazine. 4. Za rulem ? Automotive Magazine. 5. Automotive News Europe. 7. Auto repair (monthly) Page 19 of 27 Automotive ? Russia EVENTS Moscow International Motor Show Crocus Expo Moscow, Russia The show is held in August. Organiser: ITE Group PLC, London Contact: Vladislav Komlichenko, Director of the Exhibitions T: 007 495 935 7350 e: w: Moscow International Autosalon Crocus Expo Moscow, Russia The show is held in August. Organiser: ITE Group PLC, London Contact: Sergey Shkambarniy, Manager T: 007 495 727 2631 e: w: Auto & Automechanika Lenexpo Exhibition Center St. Petersburg, Russia The show is held annually in October Organisers: Messe Frankfurt GMBH, Lenexpo JSC Contacts: T: 007 812 321 2720 w: Russian Automotive Industry Forum Moscow The conference is held annually in March Organiser: Adam Smith Conferences Contacts: Anastasia Varnavskaya T: +44 20 7017 7452 E: Louise Obadia T: +44 20 7490 3774 E: W: Autoinvest St. Petersburg Organiser: North-West Development and Investment promotion Agency National Association of Automotive Component Manufacturers (NAPAK) Contacts: Ms Kostigina T: 007 812 622 14 87 E: W: UK Trade & Investment?s Tradeshow Access Programme (TAP) can help eligible UK businesses take part in overseas exhibitions. Attendance at TAP events offers significant benefits: Page 20 of 27 Automotive ? Russia ? possibilities for business opportunities both at the show and in the future ? a chance to assess new markets and develop useful contacts ? grants are available if you meet the criteria ? UKTI staff overseas will be available to assist delegates Find out if you are eligible to apply to attend this event, and more about the support UKTI can offer. Details of TAP events can be found in the Events portlet on the Russia page. Other Market Visit Support may be available via your local International Trade Advisor. CONTACT LISTS Business Tel. Company Type Surname First Name Department Position number E-mail Moscow UK Trade & Investment Trade & Deputy 7 495 956 British Embassy Russia McCrory Mark Investment Director 7453 UK Trade & Trade & Investment Trade & Investment 7 495 956 British Embassy Russia Firsova Antonina Investment Adviser 7452 St Petersburg British UK Trade & Consulate- Investment Trade & 7 812 320 General Russia Makarchuk Olga Investment Team Leader 3223 British UK Trade & Senior Trade & Consulate- Investment Trade & Investment 7 812 320 General Russia Petrov Alexander Investment Adviser 3228 Ekaterinburg British UK Trade & Senior Trade & Consulate- Investment Trade & Investment 7 343 256 General Russia Movchan Galina Investment Adviser 4931 UK - Glasgow Advanced Automotive - Engineering UK Trade & Overseas Trade Head of 0141 228 Sector Investment Lockhart Ian & Investment Automotive 3654 AEB (Association of European Businesses) Russian National Automotive Research Institute Ministry of Transport Federal Highway Agency Russian Transport Inspection UKTI?s International Trade Advisers can provide you with essential and impartial advice on all aspects of international trade. Every UK region also has dedicated sector specialists who can provide advice tailored to your industry. You can trace your nearest advisor by entering your postcode into the Local Office Database on the homepage of our website. For new and inexperienced exporters, our Passport to Export process will take you through the mechanics of exporting. An International Trade Adviser will provide professional advice on a range of services, including financial subsidies, export documentation, contacts in overseas markets, overseas visits, translating marketing material, e-commerce, subsidised export training and market research. Page 21 of 27 Automotive ? Russia ATTACHMENT A. KEY RUSSIAN AUTOMOTIVE MANUFACTURERS GAZ Group GAZ Group is a highly diversified automobile holding. It is the largest light commercial vehicle and bus producer in Russia and the CIS. GAZ also has a strong position in the Russian truck and road-building machine market. GAZ Group has 11 manufacturing facilities. Automotive plant GAZ, a wholly owned subsidiary of OAO GAZ, manufactures a broad range of vehicles, including trucks; light and medium commercial vehicles (LCV and MCV); passenger cars; and special-purpose vehicles of different kinds, derived or based on light and medium truck chassis. GAZ Group?s URAL Automotive plant manufactures heavy commercial vehicles (HCV), which account for a 10% share of the Russian HCV market. URAL traditionally dominates the all-wheel-drive (AWD) heavy truck segment, with an average 57% share. Its track record in the on-road segment is fairly short. GAZ Group?s bus-production facilities, together with the Kanash aggregate plant, offer a full range of buses of all classes. Kurgan bus plant (KAVZ) manufactures medium-class buses, Avrora small city buses and special-purpose equipment. Likino bus plant (LiAZ) produces large city buses. Golitsin bus plant (GolAZ) manufactures inter-city tourist buses, and Pavlovo bus plant (PAZ) specialises in small class buses. In 2007, a joint venture (JV) between GAZ Group and Brazil-based Marcopolo launched production of the Real small city bus at the PAZ plant. Planned capacity is 1,000 buses per year. The major objective of the JV is to augment GAZ presence in long-distance and tourist buses. GAZ Group?s powertrain facilities are represented by the Yaroslavl (Autodiesel) and Ulyanovsk engine plants, as well as the Yaroslavl plant of diesel equipment. Autodiesel engines are installed in GAZ?s Ural HCVs and large buses, and exported to MAZ, in Belarus, and KrAZ, in Ukraine. GAZ Group has purchased a licence and assembly line from Renault Trucks to produce YAMZ-650 (former RT DCi-11) heavy diesel engines, which meet Euro 3 emissions standards (and can be upgraded to meet Euro 4 requirements in the future) requirements. Total investment amounts to $90mn. Excavator production is concentrated at the Tver and Kovrovets plants. Bryansk Arsenal and the Chelyabinsk plant specialise mainly in the production of road building equipment (principally auto graders and front loaders). GAZ Group facilities Facilities Output GAZ LCVs, MCVs, Volga Ural HCVs PAZ Small class buses LiAZ Large city buses KAVZ Medium-class buses and special-purpose equipment GolAZ Intercity tourist buses Yaroslavl (Autodiesel) Engines installed into GAZ?s HCVs Ural, city buses, road-building machines, exported to Belorussian MAZ and sold to other HCV and special vehicles producers Ulyanovsk Engine Plants Engines for LCVs Gazelle and UAZ Yaroslavl Diesel Equipment Plant Diesel equipment ? Fuel injection equipment Page 22 of 27 Automotive ? Russia Tver and Kovrovets plants Excavators, both thread and wheel Bryansk Arsena and Chelyabinsk plant Road building equipment and auto graders Source: GAZ Group GAZ Group also participates in the deal between Russian Sberbank and Magna on purchase of the European operations of GM, Opel. It is possible that Opel cars will be assembled at GAZ facilities. Page 23 of 27 Automotive ? Russia VAZ AvtoVAZ is the largest car manufacturer in Russia, in 2008 the enterprise produced about 800,000 cars, the market share reached 54.6%. AvtoVAZ produces LADA brand cars. AvtoVAZ formed JVs with foreign manufacturers Renault and GM. In 2008 Renault purchased 25% of AvtoVAZ shares from an investment fund, Troika Dialogue. Historically full production cycle was used at the plant ? from design to production and sales. About 1,000 companies throughout Russia supply components and materials to AvtoVAZ. AvtoVAZ positions itself as a manufacturer of high-quality low-cost vehicles for the average Russian customer. VAZ produces more than 50 different vehicles, sold in 11 CIS countries and 29 non-CIS countries (covering Europe, Africa and South America). The VAZ plant was built in 1970, in Togliatti, in collaboration with Fiat. The first model, the VAZ-2101, introduced in 1970, was based on the 1966 Fiat 124. The plant is one of the largest in the world, with more than 300 km of production lines and a total area of about 600 ha. Most of the components for the cars are made inhouse. Current capacity of the plant is about 770,000 cars or 950,000 units with assembly kits. Currently VAZ manufactures Lada-brand cars, priced from $5,000-12,000: series 2105/2107 (Classics), 4x4s, Samaras, 110/11/12s, Kalinas and Prioras. Lada 2104s (Classics) are assembled at the Izh-auto plant (declared bankrupt in August 2009) from kits supplied by the VAZ plant (about 21,000 cars were produced in 2007). VAZ also has a JV with General Motors which manufactures the Chevrolet Niva. In 2007 AutoVAZ said it was looking to purchase platforms from a European auto manufacturer for use in a range of new products. In 2008 AvtoVAZ purchased two platforms from Renault for B and B0 classes for 100 mln euro. It is also planned that AvtoVAZ together with Renault will elaborate a new C class platform for Lada 2116. In 2009 the company plans to produce about 590,000 cars but the output will depend on the general market dynamics. The latest July 2009 media reports indicated that Avtovaz may produce 332,000 cars this year. The financial crisis has significantly affected AvtoVAZ. According to the Association of European Businesses, Avtovaz saw sales fell 44% in the first half of 2009 to 179,870 amidst an overall 49% decline on the car market. The company's had 80,000 cars still in stock as of early July even though Lada sales totalled 28,851 in June. To help AvtoVAZ fight the economic crisis 25 billion rubles were disbursed to the company via a capital increase for state-owned industrial conglomerate Rostekhnologii, one of the carmaker?s shareholders. In addition, AvtoVAZ received loans from state-controlled banks Sberbank and VTB Bank. Page 24 of 27 Automotive ? Russia KAMAZ KAMAZ is Russia?s leading producer of heavy-duty trucks with loading capacity of 14-40 t. In 2008, it accounted for 28% of the Russian heavy-duty trucks market. In 2008 total sales amounted to 47,500 trucks, a decrease of 9.8%, export sales accounted for 24%. Kamaz owns production facilities in Russia, as well as assembly plants in Kazakhstan, Vietnam, Iran and Pakistan. The company has a large distribution and service network in Russia and the ex-Soviet Republics (184 service centres and 140 authorised distributors, including 75 in Russia). Its main customers are in the construction (including road construction), oil and gas production, agriculture, machine building, electric power supply and public utilities sectors. In addition to the KAMAZ truck plant, Kamaz Group includes Tuimazy Concrete Mixer truck plant (51% owned), Neftekamsk Automobile plant (50.01% owned), Remdiesel plant (96.5% owned) and Stavropol Trailers plant (50.1% owned). Segments in which the company operates include buses, truck trailers, spare parts and services. KAMAZ facilities Facilities Output KAMAZ Heavy duty trucks (tractor units, chassis, vehicles with superstructure, dump trucks, platform trucks), medium-duty trucks (Kamaz 4308) NEFAZ Buses (city, intercity, suburban, tourist, small passenger), truck trailers and truck mixers Stavropol trailer plant Truck trailers, truck mixers, special-purpose vehicles Source: Kamaz KAMAZ?s biggest share of revenue comes from the truck segment. The product range includes more than 30 models and about 400 versions. This segment is split into heavy-duty trucks (14-40 t) and medium-duty trucks (8-14 t). Despite the economic crisis, KAMAZ remains a leader in all segments of the Russian heavy-duty truck market, except for the tractor unit. In addition to vehicle manufacturing, KAMAZ also produces spare parts and distributes them throughout the dealer network, allowing for a more complete vehicle service. KAMAZ vehicle exports are mainly destined for the CIS countries (86% of total export volume). Its strongest position is in the dump truck (43% of total exports) and chassis with superstructure (24%) segments. It has a dominating position in the markets of Kazakhstan, Azerbaijan and Turkmenistan, where its market shares amount to 70%, 80% and 70%, respectively. KAMAZ has increased its sales in Iran, Sudan, Afghanistan, Angola, Venezuela and Panama. The company has recently entered a number of new markets, and KAMAZ spare parts are now sold in Sudan, Saudi Arabia, India, Chile and Nicaragua. The united production complex of KAMAZ Group of Companies embraces the whole technological cycle of truck production ? from development, production, assembly of vehicles and auto components to marketing of finished products and service maintenance. Page 25 of 27 Automotive ? Russia The group of the technological cycle includes 13 main associated companies. 12 of them are located in Naberezhnye Chelny, the Republic of Tatarstan. According to expert estimates KAMAZ produced 39,750 trucks in 2008. Since autumn 2008 KAMAZ stopped the conveyor line several times and was in general badly affected by the crisis. Page 26 of 27 Automotive ? Russia Sollers Sollers, former Severstal Auto, is a diversified machine building company producing vehicles and components. In terms of manufacturing assets, the company holds controlling blocks of shares in OAO Ulyanovsk Automobile Works (UAZ, 66 %), OAO Zavolzhye Motor Works (ZMZ, 79 %) and OAO ZMA (99.6 %). A fourth facility is located in the Elabuga free economic zone. In 2009 Sollers also announced its plans to build an assembly plant in the Far East region of Primorie. UAZ is a leading Russian manufacturer of 4x4 vehicles: traditional UAZ off-roaders, light trucks and minibuses. UAZ also assembles Isuzu NQR71P trucks commenced. ZMZ is the largest manufacturer of four- and eight-cylinder petrol engines for E-class cars, off- roaders, buses, light trucks and special-purpose vehicles in Russia. Production capacitites of Fiat- designed F1 diesel engine will also be located at ZMZ. In Nov 2007, the company tested the Fiat Ducato assembly line at its new facility in the Elabuga free economic zone (20% income tax rate instead of statutory 24% rate, no property tax, zero export VAT). Further models will include the Fiat Linea and Isuzu trucks. Sollers also plans to produce Isuzu trucks, Fiat Ducato commercial vehicles, and SsangYong sport utility vehicles (SuVs) in Vladivostok, the Far East of Russia. It projects annual production at no less than 17,000 vehicles. Sollers plans to start with producing special vehicles, such as ambulances, minibuses and trucks. After that, the company intends to assembly four-wheel drive vehicles and sedans, including inexpensive low budget cars for the average consumer. The plant is to be commissioned by yearend or in 1q10. Sollers facilities Facilities Output UAZ UAZ-brand off-roadsters, light trucks and minibuses; Isuzu trucks ZMZ gasoline engines (for UAZ and GAZ vehicles), F1 diesel engine (for Ducato) ZMA Ssangyong 4x4s, Fiat Albea and Doblo Elabuga Fiat Ducato and Linea (planned); Isuzu (to be moved from UAZ) Source: Company data Page 27 of 27
Posted: 02 September 2010

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