The industry in facts and figures

  • 6th in the world by volume of sales
  • Total amount of investment over US$7 billion by 2012
  • 49 agreements with leading car makers

The Russian automotive market has great potential for competition in the local economy and enjoys government support at all stages of setting up a business.

Experts estimate the automotive industry accounts for about 3% of the country’s GDP.

Growth rates:

  • In the first six months of 2008, the number of local makes sold rose by 27% compared to the same period in 2007, and sales of foreign cars increased by 43%, which is more than in Germany for the same period of time.
  • In the first quarter of 2008, the Russian automotive industry growth rates were higher than the world average of 4-6% thus making it one of the global leaders.
  • It is expected that from 2007 to 2015, the share of the Russian automotive industry in the global growth of car manufacturers will be 6% to 12% and will place it among global industry leaders.

Why will the automotive market continue to grow?

1. The Russian economy has been growing at a minimum rate of 7% a year, leading to growing disposal income among the population. The share of money spent on cars follows the growing expenditure in real estate.

2. The development of consumer lending and, in particular, automobile lending, as well as the improvement of car registration procedures motivate people to buy cars.

3. Natural competitive environment: wider products range and lower process coupled with development of local production and dealer chains.

4. The number of cars per family is growing. At the moment there are 200 cars per 1000 people, while in Eastern Europe there are more than 300 cars. The middle class is also growing.

5. Automobile models are continuously being updated.

Experts believe that this will result in demand for automobile parts for primary market of foreign cars reaching US$10 billion by 2012.

For reference: a specific aspect of state support of the mechanism of factory assembly is that companies have the right to lower customs duties for import of automobile parts. Customs rates can be 0% to 5% depending on the price of the automobile parts. That is, on average the customs duty for import of automobile parts is 12% , while under agreement on factory assembly it is about 3%.

The list of foreign car manufacturers who produce their cars in Russia through factory assembly approach includes Chevrolet, Chrysler, Citroën, Fiat, Ford, General Motors, ISUZU, KIA, Mitsubishi, Nissan, Peugeot, Renault, SsangYoung, Suzuki, Toyota, Volkswagen.

Since August 2005, 49 agreements have been signed between global automobile industry leaders and producers of automobile parts and Russia (according to the Ministry for Economic Development). The total amount of investments under existing and planned engagements will exceed US$7 billion.

At the moment several automotive clusters exist or are being developed in St. Petersburg, Kaluga region, Samara region and in the Republic of Tatarstan.

Sales of foreign marks in Russia (2006, 2007, 8 months 2008/2007)

Manufacturer 2006 2007 %

(2007 to 2006)

8 months

2007

8 months 2008 %
Chevrolet 111458 190553 71% 114964 159445 39%
Hyundai 100685 147843 47% 80477 143282 78%
Ford 115985 175793 52% 105858 128814 22%
Toyota 95689 145478 52% 99503 127155 28%
Nissan 75514 116498 54% 72437 104428 44%
Mitsubishi 68845 100609 46% 56555 79384 40%
Renault 72484 101166 40% 62588 75540 21%
Daewoo 66717 91302 37% 59297 71274 20%
Opel 19983 66329 232% 39820 70293 77%
Kia 59993 78616 31% 48882 66179 35%
Mazda 32290 50592 57% 28752 52479 83%
Honda 15723 38631 146% 19770 50494 155%
Skoda 14835 27535 86% 17021 32860 93%
Volkswagen 19186 32002 67% 18961 30570 61%
Peugeot 15287 24951 63% 15596 30056 93%
Suzuki 16121 28597 77% 18011 27118 51%
Fiat 1382 15310 1008% 10598 19430 83%
Subaru 7604 15553 105% 9856 14514 47%
Volvo 10849 21077 94% 11865 14513 22%
Land Rover 6299 12606 100% 7307 13996 92%
Chery 10768 37120 245% 24866 12643 -49%
BMW 9031 14008 55% 9273 12273 32%
Audi 10050 15313 52% 10079 11643 16%
Mercedes-Benz 9316 15330 65% 10157 11098 9%
Lexus 10065 13148 31% 9379 10385 11%
Ssang Yong 4018 11277 181% 7459 9858 32%
Citroen 11934 11206 -6% 7472 7504 0%
Great Wall 4788 6238 30% 3503 6761 93%
Volkswagen Commercial Vehicles 3402 5905 74% 3549 6630 87%
Infiniti 729 5540 660% 3229 4667 45%
BYD 1694 2566 51% 1152 4020 249%
Dodge 1068 2581 142% 1662 3424 106%
Lifan 3026
Jeep 1571 1890 20% 1363 2179 60%
Mercedes-Benz Vans 1890 2675 42% 1678 1936 15%
Porsche 1323 2249 70% 1527 1589 4%
IKCO 4534 5260 16% 3262 1578 -52%
Seat 0 248 20 1479
FAW commercial 1288 2989 132% 1553 1405 -10%
Cadillac 416 1485 257% 927 1243 34%
Chrysler 1382 1165 -16% 904 1127 25%
Jaguar 893 1135 27% 664 1125 69%
Saab 383 757 98% 492 881 79%
MINI 496 678 97% 456 631 38%
Hafei 1253 2246 79% 1345 512 -62%
Hummer 360 772 114% 418 460 10%
Brilliance 300
Alfa Romeo 54 808 1396% 658 221 -66%
Isuzu 2
Total 1019629 1645630 61% 1005165 1432424 43%