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AutoEvolution 2015. About the development prospects of the Russian automotive industry

On the 8th of September the 6th international forum on the development of automobile construction and the production of autocomponents in Russia “AutoEvolution 2015” began its work. The forum has become an authoritative business site where the representatives of the governmental structures, producers of automobiles and autocomponents, experts and analysts discuss the issues of automotive industry, exchange efficient technological and management solutions, find new contacts and ideas for business development in highly charged economic situation.

In the plenary session which opened the forum  the Deputy Minister of Industry and trade of the Russian Federation, Alexandr Morozov, the 1st deputy Governor of Kaluga Region, Alexey Laptev, the Director General of the analytical agency “Autostat”, Sergey  Tselikov and the representatives of the top-management  of automotive companies took part.

The participants of the session estimated the condition of the automotive branch and discussed the scenarios for the market development. It was noted that the situation in the market and production of motor transport vehicles was ambiguous. Alexandr Morozov announced the measures of state support for the automotive industry in 2015. Among them, there is compensation of some part of expenses for modernization, subsidy assistance in the transportation of automobiles from the Far East Regions, the programme of modernization of the wheeled vehicles park, subsidies to the subjects of Russia for the procurement of buses and technology equipment working on the natural-gas-based motor fuel for the housing and utility service. “Our main objective is to support cars made in Russia and to stimulate export”, Alexandr Morozov commented.

Speaking about the measures of the demand boosting for automobiles made in the Russian Federation, Alexandr Morozov underlined that there were 3 programmes  - favourable automobile credit facilities, the programme of fleet replacement and concessionary finance lease.  “All in all it is allocated 27,2 billion roubles for 3 years for these 3 programmes. The federal budget revenues will make 56,7 billion roubles this year. Thus, the budget efficiency of 3 programmes of the demand boost – 184%. This is a unique rate”, - Alexandr Morozov noted.

In his turn Alexey Laptev told about the dynamics of  the car industry development in the Region.  Kaluga automotive cluster is presented by 3 OEM-manufacturers and 28 producers of autocomponents, many of which interact with the traditional enterprises of the Region. Notwithstanding the decline in the automotive industry, producers increase the productivity of their enterprises, in particular, strive for increasing the level of localization and correct production programmes. For example, «Volkswagen Group Rus» has reached the level of localization of Polo Sedan model at 70%. «At this moment 33% of the production volume and 6% of taxes, coming to the consolidated budget, belong to the automotive cluster», - Alexei Laptev added. Summing up what has been said, Alexei Laptev suggested giving an official status to the Kaluga automotive cluster.

Sergei Tselikov: «The Russian automotive cluster is considered to be perspective. If earlier only 40-44% of cars were locally assembled, now practically 80% of cars are produced in Russia. It should be remembered that the Russian car market is less predictable and more volatile, than the markets of European countries».

Global automotive manufacturers have shared their plans for Kaluga Region and the Russian market as a whole.

Peter Andersson, Director General of Volvo Group Trucks Russia: «The truck transport industry is one of the first ones that responds to changes in the economy. However, we have an opportunity to work at a solid pace. Now the level of our localization is reaching 30-35%. It’s the highest level in this direction. We’re the largest investor in Russia in the sphere of freight transport. We’re going to renew our industrial process».

Jean-Christophe Marchal, Director General of «PCMA Rus»: «Our investments are long-time. We simply have to correct our activities and enter a market with a new development strategy. From a commercial point of view, we must focus on the production of concrete models, ameliorate production efficiency for it will correspond to realities of the company, and increase the level of localization, which is 35 % at the moment. Our aim is 50% by the end of 2016. We’re also interested in export».

Adil Shirinov, the first vice-president and executive director of Ford Sollers: «Under the current conditions of economic instability it’s important to localize materials in Russian at 100% and create a component base».

Shi Jun, Director General of «Fuyao Steklo Rus»: «The Russian automotive market has development prospects. And we’re going to the second stage of investments, which will be directed to the growth in production in two times. In our plans there’s also an export to the European markets. At this moment we’re exporting our production to Belgium, Germany, Spain and France».