Subsidies bolster Russian auto market in H2 2013

Foreign OEMs partner with Russian automakers to boost production



Vehicle production and sales in Russia Since the beginning of 2013, the Russian auto market has been stagnant under the influence of the economic slowdown due to a drop in export of crude oil and other resources. In July 2013, the Russian government has launched a loan interest subsidy scheme to stimulate demand for cars. The subsidies have helped bolster the auto market as they mitigated some of the decline in sales. While it was reported that the scheme might be finished at the end of 2013, the market situation in 2014 depend on whether the government continues the scheme or not. In the long term, the Russian auto market is expected to grow further. In response to anticipated market expansion and the government's request to boost local production, a number of foreign OEMs are partnering with Russian manufacturers to set up production facilities in Russia.

 LMC Automotive disclosed a forecast for the Russian auto market in October 2013. After a 10.9% increase in 2012, the Russian light vehicle sales started to drop compared to year-ago levels in March 2013. Overall sales in 2013 will decrease to 2.81 million units, a drop of 4.3% from the previous year. Concrete reasons to explain the drop are difficult to identify. Speculation that the government would be looking to support the market is likely to have persuaded a number of potential buyers to hold back from the purchase of a new car. With the new loan interest subsidy scheme, which began operating on 1st of July and will run at least until 1st April, 2014 (as of October 2013), LMC Automotive expects the market improvement to continue at a steady rate during 2014, reaching 2.94 million units by the end of the year. Russian vehicle sales will continue to increase in 2015 and are expected to reach 3.31 million units in 2016.

Related Reports:
Japanese suppliers invest in European operations to expand sales (Oct. 2013)

Sales of 2.79 million and production of 2.18 million expected for full-year 2013

 The vehicle sales in Russia peaked in 2008 at 2.93 million units, and then, halved to 1.47 million units in 2009 due to the financial crisis. After that, the sales have recovered steadily and renewed the record in 2012 at 2.94 million units. However, in 2013, as Russia's crude oil exports fell with dwindling economy in Europe, investment shrank and consumer's spending slowed in Russia. Worried customers became cautious, resulting in the new vehicle sales of 2.28 million units, a 6.6% decline, for the first ten months in 2013. In October, Association of European Businesses (AEB) adjusted its full-year sales forecast for 2013 downward to 2.79 million units, a 4.9% drop year-over-year, from 2.95 million units as of March and 2.8 million units as of June 2013.

 The vehicle production in Russia also decreased by 3.1% year-over-year to 1.78 million units for the period from January to October 2013. According to the forecast released in December 2013 by ASM Holding, which compiles production statistics, the 2013 full-year production will fall to 2.18 million units (1,922,000 units for passenger cars and 255,000 units for commercial vehicles), a drop of 2.8% from the year before.

Vehicle production and sales in Russia

2009 2010 2011 2012 Jan.-Oct. 2012 Jan.-Oct. 2013 2013 (Forecast)
Production of vehicles 724,190 1,406,643 1,994,254 2,239,545 1,837,000 1,781,300 2,176,572
Production of passenger cars 595,807 1,208,362 1,738,163 1,968,789 1,621,600 1,574,800 1,922,024
Production of commercial vehicles 128,383 198,281 256,091 270,756 215,400 206,500 254,548
Sales of vehicles 1,465,925 1,912,794 2,653,408 2,935,111 2,441,631 2,280,983 2,790,000
Source: ASM Holdings, Association of European Businesses (AEB) and others
(Note) 1. Sales in 2010 and later do not include heavy-duty trucks.
2. Production forecasts for 2013 represent ASM Holding's forecast released in December, while sales forecast represents AEB's forecast disclosed in October 2013.



AvtoVAZ's market share declines to 17%; Hyundai Group expands to 14%

Share of new car and LCV market in Russia When looking at market shares by manufacturer, AvtoVAZ, which used to have a share of 27% in 2010, has been losing its share gradually, resulting in 17% for the first ten months of 2013. Renault-Nissan-AvtoVAZ still held a 30% combined share.

 Renault has expanded its market share from 6% last year to 8% with a success of the Duster, a low-cost global strategic SUV. Hyundai Group, which enjoys strong sales of the Hyundai Solaris and the Kia Rio compact cars, has boosted its share from 12% to 14%, coming second only to AvtoVAZ.

Sales of passenger cars and light commercial vehicles by OEM (locally produced vehicles and imports)

2011 2012 Jan.-Oct. 2012 Jan.-Oct. 2013
Sales Market share Sales Market share
AvtoVAZ 578,387 537,625 449,164 18.4% 380,852 16.7%
Renault 154,734 189,852 155,433 6.4% 173,494 7.6%
Nissan 145,869 162,956 138,986 5.7% 121,260 5.3%
Renault-Nissan-AvtoVAZ 878,990 890,433 743,583 30.4% 675,606 29.6%
Kia 152,873 187,330 157,519 6.4% 164,595 7.2%
Hyundai 163,447 174,286 146,739 6.0% 151,443 6.6%
Hyundai Group 316,320 361,616 304,258 12.4% 316,038 13.9%
GM 336,043 376,540 315,634 12.9% 259,216 11.4%
VW 228,799 315,937 260,985 10.7% 250,551 11.0%
Toyota 133,203 168,700 142,585 5.8% 140,946 6.2%
Ford 118,031 130,809 105,517 4.3% 85,430 3.7%
GAZ 90,034 90,247 72,576 3.0% 68,367 3.0%
Mitsubishi 74,166 74,294 59,872 2.4% 63,269 2.8%
PSA 71,942 77,279 65,875 2.7% 52,770 2.3%
UAZ 57,148 60,653 48,146 2.0% 40,816 1.8%
Daimler 31,760 41,438 33,414 1.4% 40,271 1.8%
BMW 30,167 40,144 32,247 1.3% 36,000 1.6%
Mazda 39,718 44,443 38,831 1.6% 35,153 1.5%
Others 247,482 262,578 221,110 9.0% 216,748 9.5%
Total 2,653,803 2,935,111 2,444,633 2,281,181

Source: Association of European Businesses (AEB) (Note) GM's sales include those of Daewoo. VW's sales for the period of Jan.-Oct. 2013 include those of Porsche. Porsche's sales before 2012 are included in those of others.



Russian government's measures for auto industry

Russia launches loan interest subsidy scheme

 The Russian government has launched a loan interest subsidy scheme on July 1, 2013 to stimulate demand for vehicles. The scheme subsidizes two-thirds of the Central Bank interest (currently at 8.25%) for those who purchase passenger cars and light commercial vehicles with a loan for the maximum of 36 months. To be eligible for the scheme, vehicles must cost no more than RUB 750,000. The plan covers not only locally produced models but also imports. (The similar program executed from 2009 to 2011 encompassed only locally made cars priced below RUB 600,000.) The current program was scheduled to last until April 1, 2014. However, it is likely to be finished at the end of December since the basic objectives of the scheme to reduce the decline in production have been achieved. The government will monitor the situation of the market in and after 2014, and will propose adequate measures when necessary. It is estimated that around 248,000 vehicles will be sold under this scheme from July to December 2013. RUB 7.8 billion will be earmarked for the program by the government.
(Note) 1. In early December 2013, RUB 1 is equivalent to JPY 3.08.
2. Interest rates on car loans in Russia in mid-2013 were around 16%.

Russia amends vehicle recycling fee measures

Problems on recycling fee  The Russian government has levied the recycling fee for four- or more-wheeled vehicles since September 1, 2012. While vehicles produced in Russia and its Customs Union partners, Kazakhstan and Belarus, are exempt from the fee under a certain condition, it is imposed on all imports without exception. The EU and Japan insisted that the fee is incompatible with the basic WTO rules as the measure is treating domestic products more favorably than imports.
EU/Japan file WTO dispute  The EU and Japan held formal consultations with Russia in the WTO in July and August 2013, respectively, hoping to revise the recycling fee measures. In October, the EU went a step further and requested the establishment of a dispute settlement panel at the WTO. (The WTO has established the panel on November 25.)
Putin signs amended legislation  Russian President Putin signed legislation amending the vehicle recycling fee measures on October 21, 2013. The legislation was promulgated on October 23, and will come into force on January 1, 2014. Since the amended measures call for the recycling fee to be applied to vehicles produced in Russia and Customs Union partners, Russia believed that the matter could be resolved without a panel.

Russia to develop measures to promote natural gas vehicles

 The Russian government issued a decree for the promotion of the natural gas vehicles on May 13, 2013. It aims to achieve the following targets for the ratio of the natural gas vehicles by 2020: 50% of the total number of transport means in cities with a population of over 1 million; 30% in cities with a population of over 300,000; and 10% in cities with a population of over 100,000. The government plans to formulate measures for reducing tax on natural gas vehicles and building infrastructure including natural gas stations by the end of 2013.




Renault-Nissan-AvtoVAZ to produce Renault/Datsun vehicles at Togliatti plant

Mid-term business plan  The Renault-Nissan Alliance plans to acquire a majority stake in AvtoVAZ and take control of the company by June 2014. In 2012, the three automakers collectively sold 890,000 units in Russia, for a combined market share of 30.3%. Together they aim to increase share to 40% and production capacity to 1.7 million units by 2016. Current capacity is 1.62 million units: 1,275,000 for AvtoVAZ's Togliatti plant (including the new line mentioned below), 120,000 for the Izhevsk plant, 175,000 for Renault's Moscow plant, and 50,000 for Nissan's St. Petersburg plant.
Vehicle production for all three partners at Togliatti plant  The three partners jointly installed a new assembly line with manufacturing capacity of 350,000 units per year at AvtoVAZ's Togliatti plant. Production of the Lada Largus started in April 2012 and assembly of the Nissan Almera launched in December. Test production of the Renault Logan started in 2013. Vehicles under Nissan's Datsun brand will also be manufactured at the Togliatti plant starting in 2014.
Assembly of powertrains for Renault-Nissan  AvtoVAZ launched powertrain production for the Renault-Nissan Alliance at its Togliatti plant in November 2013. A 1.6-liter engine and two types of transmissions are being assembled for the Lada Largus MPV and other models. Starting in 2014, the company plans to manufacture 300,000 sets of engines and transmissions per year for the models sharing Renault's B0 platform. Some will be supplied to Renault's Moscow plant. The Alliance is now considering production of a second engine in Russia.
Common purchasing organization established  In September 2013, the Renault-Nissan Alliance and AvtoVAZ announced the establishment of Common Purchasing Organization in Russia. CPO is equally owned by AvtoVAZ and the Renault-Nissan Purchasing Organization (RNPO) established in 2001. The new company will use RNPO's methods and standards to manage the purchasing of industrial equipment, powertrains and vehicles based on common platforms for the three partners' joint activities. CPO will allow the partners to generate significant savings because of increased volumes and better pricing agreements.
Development of Datsun models with AvtoVAZ  In 2014, Nissan plans to launch new Datsun models in Russia, that are specifically designed for emerging markets. The Japanese OEM will develop those models with AvtoVAZ, using a 1.6-liter engine and adopting the same platform used by the Lada Granta low cost compact car. To reduce production costs, Nissan will also use locally manufactured parts in the Nissan Almera and the Renault Logan, which are manufactured by AvtoVAZ. Datsun models for India and Indonesia will use a new platform based on the Nissan Micra. The new Datsun models will be individually developed for different markets.


AvtoVAZ to build a joint venture plant in Kazakhstan

Joint venture plant in Kazakhstan  In August 2013, AvtoVAZ acquired a 25% stake in Azia Avto in Kazakhstan and agreed to build a joint venture plant in Ust-Kamenogorsk city in East Kazakhstan. It will be the first complete knockdown plant which has a welding, painting and assembly line with an annual production capacity of 120,000 units. When the plant starts operations in 2016, the Granta and the Kalina under the Lada brand will be assembled for Kazakhstan, Siberia, the Russian Far East, and Central Asia.
First delivery of EVs  In February 2013, AvtoVAZ announced that it delivered first five units of EL Lada electric vehicle (EV). The automaker will supply 90 EL Ladas to the resort area in Stavropol region, southern Russia, as taxis. The EL Lada is AvtoVAZ's first EV based on the Lada Kalina five-door hatchback. The model can travel up to 150 km on a single charge.


Nissan launches Almera developed for Russia

 Nissan started the sales of the new Almera in Russia in April 2013. Developed specifically for the Russian market, the four-door five-seat sedan comes with a 1.6-liter petrol engine and a five-speed manual/four-speed automatic transmission. In response to Russian climate and road conditions, the model's underbody is covered by a steel plate and its cold startability has been enhanced. Its price starts at RUB 429,000. The Almera has been produced at AvtoVAZ's Togliatti plant.



Russian automakers (AvtoVAZ, GAZ, Sollers and ZIL) partnering with more foreign OEMs

AvtoVAZ and GM to expand joint venture plant

 In June 2013, GM and AvtoVAZ's joint venture, GM-AvtoVAZ started construction of a new plant at the Togliatti Special Economic Zone in Samara State, which is close to its existing plant. The new plant is scheduled to be operational in December 2012. Its overall annual production capacity will be raised to 120,000 units including 75,000 at the existing plant. With an investment of USD 209 million, a press shop, a body shop, a distribution center and a production management center will be constructed. Additional 1,000 people will be employed when operations start at the new plant.


GAZ produces more vehicles for GM, VW, Skoda and Mitsubishi

GM  In February 2013, GAZ, the Russian major automaker, started complete knockdown production of the Chevrolet Aveo compact sedan at its Nizhny Novgorod plant. Its hatchback version was added to the GAZ production line in March. GAZ and GM had invested USD 29 million to renovate a painting process for the project to produce the Aveo.
VW Skoda  In June 2013, GAZ started production of the third-generation model of the Skoda Octavia compact at its Nizhny Novgorod plant. This is the second Skoda model produced at GAZ's plant, following the Yeti whose production had started in December 2012. In preparation of these two models, VW, Skoda and GAZ had invested EUR 300 million to modernize the facilities.
VW  Production of the Jetta, VW's major midsize model, was launched in April 2013 at GAZ. The Russian automaker will manufacture 110,000 units per year for the VW Group including the Skoda models.
Mitsubishi Motors  In September 2013, GAZ began production of the frames of the Pajero Sport SUV for Mitsubishi Motors at its Nizhny Novgorod plant. The project is implemented under the agreement between GAZ and PCMA Rus, a joint venture between PSA and Mitsubishi. The frames of the Pajero Sport are supplied to PCMA Rus's Kaluga plant.


Sollers partnering with Ford, Mazda and Toyota

Ford Construction of engine plant  In May 2013, Ford Sollers, the Ford and Sollers fifty-fifty joint venture (JV), announced that it will invest USD 274 million to build a new petrol engine plant in Yelabuga, Tatarstan. The JV plans to produce three versions of the 1.6-liter Duratec engine (85 ps, 105 ps, 125 ps) at the new plant from December 2015. When it is operational, 500 workers will be employed. Initially, the new engine plant will have an annual production capacity of 105,000 units with the possibility for further expansion of up to 200,000 units. Around 30% of the Russian-built Ford vehicles will be equipped with these engines.
Creation of R&D center  At the end of September 2013, Ford Sollers announced the creation of new R&D centers in Moscow, Tatarstan and St. Petersburg. The total number of employees engaged in R&D activities will be about 150 by the end of 2014. The center in Moscow, where the headquarters of the joint venture is located, will lead overall R&D activities and will be responsible for the localization of parts for Russian-built Ford vehicles, supplier support, program management, testing, and homologation. The engineers in Tatarstan, where the Sollers plant is situated, will handle the development of light commercial vehicles for the local market. The facility in St. Petersburg, where the Ford plant stands, will be responsible for supporting volume production and quality management.
CKD production of SUVs  Ford Sollers started CKD production of the Explorer midsize SUV at its Yelabuga plant in April 2013. This is the first CKD production of the Explorer outside the United States. CKD production of the Kuga compact SUV also began in October. The joint venture had launched semi knockdown production of the two models in July 2012 at the Yelabuga plant.
Expansion of SUV line-up  In October 2013, Ford Sollers announced that it will expand its line-up of SUV models produced in Russia to meet rising demand. The joint venture will begin production of the new Ford EcoSport in 2014 at its Naberezhnye Chelny plant in Tatarstan. It was also confirmed that the Edge crossover SUV will go into production at the Yelabuga plant in Tatarstan in early 2014.
Mazda  In April 2013, Mazda Sollers Manufacturing Rus, the Mazda and Sollers fifty-fifty joint venture, started production of the Mazda6 (sold as the Atenza in Japan) sedan at its Vladivostok plant. The model comes with a 2.0- or 2.5-liter SKYACTIV-G engine and is priced at RUB 899,000-1,198,000. The CX-5 SUV has been built since October 2012 at the same plant.
Toyota  In February 2013, Toyota began semi knockdown production of the Land Cruiser SUV at the plant jointly built by Sollers, the leading Russian automaker, and Mitsui & Co., the Japanese trading company, in Vladivostok. Toyota plans to move to complete knockdown production in the future. While the plant started producing 1,000 units per month, it aims to raise the annual production volume to 25,000 units within a year.

(Note) In complete knockdown production, a set of auto parts are imported and should be welded, painted and assembled at the local plant. On the other hand, in semi knockdown production, a set of parts that have been partly put together are imported and only final assembly is conducted at the local plant.


ZIL to assemble Fiat Ducato and Renault Master large vans

 In August 2013, ZIL, the Russian commercial vehicle manufacturer, reportedly signed a preliminary agreement to assemble Fiat and Renault commercial vans. A final deal will be signed toward the end of 2013. ZIL plans to assemble the Fiat Ducato and the Renault Master large vans at its Moscow plant, starting from the first quarter of 2014. With an investment of USD 200 million, the Russian automaker will establish a facility to produce 50,000 units per year (25,000 units for each model). It is anticipated that the plant will start complete knockdown production of the two models in 2015.



U.S., European and Taiwanese OEMs in Russia: GM, VW, PSA , Fiat and Yulon

GM to integrate Russian business into GM Europe; production of Trailblazer starts

Russian business to be integrated into GM Europe  The GM business in Russia will be integrated into GM Europe effective January 1, 2014. So far the business in Russia is run by GM International Operations based in Shanghai, which oversees businesses outside North America and Europe. It is an important step to strengthen the position of Opel on the Russian market. Russia is the third biggest market in Europe for Opel. All forecasts point out that Russia will become the biggest market in Europe in the coming years.
Semi knockdown production of Trailblazer  In April 2013, GM began semi knockdown production of the Chevrolet Trailblazer midsize SUV at its Susary plant in St. Petersburg city. The model comes with a 2.8-liter diesel or 3.6-liter petrol engine. Its prices range from RUB 1,444,000 to RUB 1,777,000.


VW to build a new engine plant

Mid-term target  The VW Group aims to sell 500,000 vehicles per year in Russia by 2018. (Its 2012 sales totaled 315,000 vehicles.) The group will invest further EUR 1.2 billion in Russia for the period from 2014 to 2018 to build assembly plants, renovate manufacturing facilities and develop new models.
Construction of engine plant  In December 2012, VW laid a foundation stone for a new engine plant in Kaluga. With an investment of EUR 250 million, the new plant will be built to have an annual capacity of 150,000 units. A new 1.6-liter petrol engine will be produced, starting at the beginning of 2015. With the new engine plant, at least 30% of the VW Group vehicles produced in Russia are equipped with locally-manufactured engines by 2016.


PSA starts production and sales of Citroen C4L sedan for emerging markets

 In April 2013, Citroen started production of the C4L sedan designed for emerging markets at the Kaluga plant of PSMA Rus, the joint venture between PSA and Mitsubishi Motors. The sedan was launched in the Russian market in June with a sales target of 13,000 units for 2013. The C4L is a four-door sedan based on the C4 compact hatchback. Its wheelbase is extended by 100 mm to enhance comfort for rear-seat passengers. In response to Russian climate and road conditions, the model comes with a robust chassis, a reinforced starter and battery for starting in extreme cold weather, and a fully-heated windscreen.


Fiat considering production of Jeep models at TagAZ plant

 In February 2012, Fiat signed an agreement with Sberbank, the Russians state bank, on a project to produce and sell the Jeep brand vehicles in Russia. However, the automaker is reconsidering the plan (media reports in March 2013). Instead of producing 120,000 Jeeps a year at a new plant which it will build in St. Petersburg with financing from Sberbank, Fiat is examining the possibility of contract manufacturing of the Jeep vehicles at the Taganrog plant of TagAZ, the Russian automaker. Chrysler, which is owned by Fiat, stated in March 2013 that it expects to start building the Jeep vehicles in Russia in 2014, despite the lack of an agreement on a production site and manufacturing contractor.


Taiwan's Yulon starts production and sales of LUXGEN7 SUV in Russia

 In September 2013, Taiwan's Yulon Motor launched the LUXGEN7 SUV, an SUV under its premium brand LUXGEN in Russia. The SUV are produced at the Cherkessk plant of Derways Automobile, the Russian automaker. Its prices range from RUB 1.32 million to RUB 1.61 million. It is anticipated that the LUXGEN5 Sedan will also be launched in 2014. Yulon has already been marketing the LUXGEN vehicles in the Middle East, Southeast Asia and Central America. The Taiwanese company aims to bring up the LUXGEN to become a global brand through production of these models in Russia and launching them into Europe.



Japanese OEMs in Russia: Toyota and Mitsubishi Motors

Toyota to produce RAV4 in Russia from 2016; Venza imported from US

Local production of RAV4  In September 2013, Toyota announced that it will start complete knockdown production of the RAV4 SUV at its Susary plant in St. Petersburg city from 2016. With an investment of JPY 18 billion, the automaker will increase the plant's annual production capacity from 50,000 units to up to 100,000 units. While the plant is now manufacturing the Camry with 1,600 employees, additional 800 people will be employed after the capacity is boosted. The RAV4 is Toyota's best-selling car in Russia with the sales of 27,000 units for the first eight months in 2013. Currently, the finished vehicles of the RAV4 are imported from Japan to Russia.
Launch of U.S.-built Venza  Toyota launched the Venza crossover SUV in Russia in June 2013. Priced at RUB 1.57 million-1.78 million, the model comes with a 2.7-liter engine and a six-speed automatic transmission. The SUVs are built at its Kentucky plant in the U.S. This is the first U.S.-built Toyota model to be imported to Russia. A total of 5,000 units will be imported per year for Russia and Ukraine. Toyota plans to leverage the U.S. facilities as export bases and to expand export destinations from the U.S.


Mitsubishi Motors starts production of Pajero Sport in Russia; US-built Outlander Sport launched

Production of Pajero Sport  In July 2013, Mitsubishi Motors started production of the Pajero Sport midsize SUV at PCMA Rus, the joint venture plant in Russia owned by Mitsubishi and PSA. The model had been imported from Thailand and first launched in Russia in 2008. At the end of May 2013, the accumulated sales of the Pajero Sport amounted to 24,000 units. Hereafter, the model will be locally produced. The frames for the Pajero Sport will be manufactured by GAZ.
Outlander Sport imported from US  In March 2013, Mitsubishi Motors began import of the Outlander Sport SUV built in Illinois, the U.S. to Russia. So far the SUVs being marketed in Russia had been imported from Japanese plants. From now on, they will be imported from the U. S. plants. The Japanese automaker will use the U. S. plants as export bases with a plan to improve its export profitability.



Commercial vehicle manufacturers in Russia: Kamaz, Daimler, GAZ and Scania

Kamaz jointly produces midsize buses with Brazil's Marcopolo

 In December 2012, Kamaz began assembly of the Bravis midsize bus at its Neftekamsk plant in the Republic of Bashkortostan jointly with Marcopolo, the Brazilian bus maker. The Bravis can accommodate up to 50 people and installs Kamaz chassis, Marcopolo body, Cummins engine, and ZF transmission. The model meets the requirements of the EURO 4 emissions standard. Kamaz plans to produce 500 buses a year in 2013 and will increase an annual production volume to 3,000 by 2016 for sale to Russia and CIS countries.

Daimler supplies engines and axles to Kamaz; local production of commercial vans with GAZ

Supply of engines and axles for trucks to Kamaz  In November 2012, Daimler's commercial vehicle division announced that it would supply 7,000 engines and 15,000 axles per year to Kamaz. Front and rear axles for trucks and buses, truck diesel engines, and bus natural gas engines will be supplied from Germany to the plant of Kamaz in Naberezhnye Chelny.
GAZ produces commercial vans for M-Benz  In July 2013, GAZ started production of the Sprinter Classic, a Mercedes-Benz commercial van, at its Nizhny Novgorod plant. For this project, Daimler invested more than EUR 100 million and GAZ invested over EUR 90 million to introduce full production facilities including welding, painting and assembly lines. The partnership also involves the joint production of engines. The GAZ plant in Yaroslavl manufactures Mercedes-Benz OM646 four-cylinder diesel engines that are subsequently installed in the Sprinter Classic.

Scania and GAZ to deliver jointly-developed buses for Moscow public transportation

 In February 2013, Scania announced that it will deliver 709 GOLAZ branded buses developed with GAZ to Mostransavto, the largest public transport operator in the Moscow region. The order is one of Scania's largest bus orders ever in Europe. The contract has a value of more than RUB 6 billion. The buses have been developed using Scania's chassis and powertrains. All buses will be delivered within 2013 and used in transport service for Sochi Olympic Games during the first quarter of 2014. Then, the buses will be brought into public service in Moscow.



Production Forecast by LMC Automotive: Russian production to rise to 2.96 million units in 2016

(LMC Automotive、October 2014)

Russian light vehicle production forecast by group LMC Automotive's latest forecast sees output of 2.09 million units by Russian vehicle plants in 2013, which will represents a drop of 1.4%. A large number of new models will come on stream during 2014 (including the Lada Granta hatchback, new generation Renault (Dacia) models at Togliatti, Nissan Qashqai and Tiida, new Datsun low cost car, Ford EcoSport, the Russian built Skoda Rapid, and new Chinese models) and combined with an upturn in Russian demand, should support a revival in vehicle production of at least 14.5%. LMC Automotive forecasts that light vehicle production will increase to 2.72 million units in 2015, up 13.5% year-on-year, and further grow to 2.96 million units in 2016, up 8.9% over the previous year.

Russian light vehicle production forecast by make

SALES GROUP GLOBAL MAKE 2010 2011 2012 2013 2014 2015 2016
Total 1,328,399 1,889,184 2,119,113 2,088,729 2,392,431 2,716,467 2,959,268
BMW Group BMW 10,755 17,965 23,001 29,994 33,764 39,247 34,850
Brilliance Jinbei Brilliance 0 0 0 979 6,441 12,950 19,369
BYD Auto BYD 0 2,113 5,138 1,481 4,438 4,940 4,637
Chery Group Chery 1,915 0 0 0 0 0 0
Daimler Group Mercedes-Benz 0 0 0 3,407 15,158 16,541 16,822
Fiat-Chrysler Group Fiat 23,135 30,300 2,019 0 7,801 13,827 16,998
Ford Group Ford 80,390 98,807 127,305 111,208 125,181 191,293 242,742
GAZ Group Gaz 76,568 87,991 88,085 86,140 90,068 95,484 106,351
Geely Group Emgrand 0 0 7,598 14,150 13,336 10,473 8,361
Englon 0 0 0 966 17,774 27,479 32,243
Geely 1,978 5,366 15,674 13,998 0 0 0
Geely Group Sub-total 1,978 5,366 23,272 29,114 31,110 37,952 40,604
General Motors Group Cadillac 1,271 3,379 1,377 1,078 0 0 0
Chevrolet/Daewoo 114,234 163,564 208,353 149,034 153,103 133,484 98,990
Opel 29,505 59,485 77,017 67,655 77,207 70,104 75,050
General Motors Group Sub-total 145,010 226,428 286,747 217,767 230,310 203,588 174,040
Great Wall Motor Haval 0 18,622 23,904 21,845 35,960 45,997 43,750
Honda Group Honda 0 0 0 0 0 17,895 36,254
Hyundai Group Hyundai 10,224 131,877 122,019 133,539 130,395 129,825 158,762
Kia 80,281 118,424 192,011 209,529 186,698 185,724 184,424
Hyundai Group Sub-total 90,505 250,301 314,030 343,068 317,093 315,549 343,186
Isuzu Motors Isuzu 345 353 392 547 826 1,086 1,405
Mahindra Group Ssangyong 13,861 25,127 32,773 37,860 28,870 16,996 13,511
Mazda Motors Mazda 0 0 3,108 25,318 33,870 29,760 27,190
Mitsubishi Motors Mitsubishi 2,473 8,639 6,549 24,925 40,627 40,496 36,753
Other Izh 1,338 5,241 3,755 0 0 0 0
Luxgen 0 0 0 751 3,431 5,179 5,947
Others by Country 7,506 10,716 14,551 13,481 7,361 7,982 8,964
TagAZ 16,045 13,398 10,529 3,343 4,869 3,542 3,010
UAZ 56,072 63,890 70,434 62,495 55,504 50,528 53,542
Yo-Auto 0 0 0 0 0 8,940 13,517
Other Sub-total 80,961 93,245 99,269 80,070 71,165 76,171 84,980
Other Chinese Manufacturers Fstar 0 0 0 0 405 1,648 2,199
Haima 313 2,754 595 341 1,489 2,396 2,093
Lifan 9,422 23,383 22,779 23,958 36,649 43,559 43,909
Other Chinese Manufacturers Sub-total 9,735 26,137 23,374 24,299 38,543 47,603 48,201
PSA Group Citroen 6,172 13,203 13,054 11,657 18,710 17,482 15,991
Peugeot 17,402 21,421 20,322 13,896 19,832 19,896 29,838
PSA Group Sub-total 23,574 34,624 33,376 25,553 38,542 37,378 45,829
Renault-Nissan Group Dacia 86,848 139,219 160,369 182,112 183,236 197,661 190,017
Datsun 0 0 0 0 37,312 60,225 57,000
Infiniti 0 0 3,823 6,014 6,199 186 0
Lada 551,161 624,960 599,866 514,088 507,175 580,621 699,628
Nissan 24,486 43,605 46,620 65,838 180,116 262,923 267,724
Renault 0 3,085 6,113 9,607 36,283 69,428 94,399
Samsung 0 0 1,617 4,258 3,386 3,366 3,613
Renault-Nissan Group Sub-total 662,495 810,869 818,408 781,917 953,707 1,174,410 1,312,381
Toyota Group Toyota 15,892 14,131 28,441 47,344 68,821 62,122 74,496
Volkswagen Group Audi 5,528 0 0 4,121 8,800 10,179 8,223
Skoda 36,294 51,722 60,759 65,019 86,534 107,107 112,416
Volkswagen 46,985 86,444 119,163 126,753 124,802 117,896 114,280
Volkswagen Group Sub-total 88,807 138,166 179,922 195,893 220,136 235,182 234,919
Source: LMC Automotive "Global Automotive Production Forecast (October 2013)
(Note) 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
2. All rights reserved. Reproduction of any data will require permission of LMC Automotive.
3. For more detailed information or inquiries of forecast data, please contact LMC Automotive.

<Automotive Industry Portal MarkLines>