The Russian Market of the Automotive Components

There were several reasons for the development of the automotive components production in Russia.

1. Historical. Own automobile production began to appear in the Soviet Union 90 years ago. The factories required suppliers of components. Thus, the entire industrial centers began to appear in the Urals, in Ulyanovsk, Tolyatti, as well as individual enterprises in other regions.

2. Political. An artificial barrier was created for the import of cars from other countries in the form of high customs duties in 2000. This led to the creation of assembly plants on the territory of the country, and the first joint ventures. A decree was adopted that created attractive conditions for the creation of foreign car manufacturers in Russia in 2005. In 2010, the Russian government raised the requirements — localization should be 60%. It is possible to achieve these indicators only with the use of Russian-made automotive components.

25 special economic zones were created in order to create optimal production conditions in Russia. They are located in the factories of Ford, Volkswagen, Volvo Trucks, Lifan, AvtoVAZ, as well as their suppliers of components. Due to tax and customs privileges, simplified access to engineering and transport infrastructure, the costs of residents of special economic zones are on average 30% lower than in the Russian Federation.

Currently, there are about 370 large companies operating in Russia that are engaged in the production of auto parts for cars of different categories. 292 of these are Russian companies, including companies with a certain share of foreign investments, and 73 are foreign companies that were created entirely on foreign investments.

A large number of production facilities are concentrated in industrial zones that were created as part of regional projects. For example, there are industrial parks of Hyundai and Nissan suppliers near St. Petersburg. Several manufacturers of automotive components are located on the territory of GAZ.

Russian-made engines are put on the cars of three foreign brands. Volkswagen has built a 1.6 MPI gasoline engine assembly plant in Kaluga. The Mazda engine plant in Vladivostok produces the Skyactiv-G gasoline engine. AvtoVAZ produces 1.6 engines for Renault–Nissan and Lada cars.

Now about 35-37% of all auto parts are produced in Russia. So the share of imports in the Russian market has a high level and ranges from 62.5 to 65%.

The highest growth rates of the auto parts market are demonstrated by Moscow, where about 20% of all spare parts are sold. The growth of the Russian spare parts market continues, despite the fact that it is rapidly falling in the world.

According to forecasts, the demand for auto parts in Russia will grow by 25-35% by 2024.

There are great prospects for the development of the production of automotive components in Russia. Machine builders agree that if the Russian market remains dependent on foreign components, it is very difficult for the industry to develop dynamic.

The state supports local producers. The Ministry of Industry and Trade has developed a concept for the development of domestic high-tech production of components and systems for the automotive industry. It is planned to allocate 150 billion rubles from the budget for its implementation until 2025. Moreover, the products will also change — they will become more complex and technologically advanced. There will be their own development centers.

Now there is a need for the production of engines, transmissions, chassis parts and electronics arises due to the tightening of the conditions of special investment contracts of automakers to increase localization. Government Decree No. 719 was amended to create conditions for the mass production of axles in Russia.

The events of 2019-2020, which prove the constant demand for automotive components in Russia:

2019

Launch of production of HAVAL cars (Tula)

Launch of production of Mercedes cars (Moscow)

Mastering the production of a mini loader Termit (Kurgan)

Launch of the center for the development and production of automated gearboxes for tractors (SPb)

Signing of a special investment contract providing for the organization of logging equipment production (Karelia)

2020

"KAMAZ" organization of serial production of mainline tractors (Tatarstan)

Development of serial production of backhoe loaders for construction and municipal works (Vladimir)

Development of mass production of new cranes with a lifting capacity of 25-35 tons (Kostroma)

Launch of serial production of a forage harvester with a capacity of up to 230 tons per hour (Rostov)

Dott. Nataliya Barkar

29/09/2021