Russian Auto Industry

AbsoluteZero wrote:


Hi, I was playing Need for Speed Rivals this afternoon, and there was a car in there thats Russian, its by Marussia motors, i think its the b1, anyways it was cool, but when I made a research about it unfortunately it turned out that Marussia Motors went bankrupt just early this year, thats too bad, since it seemed like the company was doing well but then suddenly it got broke, I wonder what is the future prospect for the Russian automotive industry?

sepheronx wrote:Marussia was barely Russian as their plant was in Finland. That said, it was trying to be Farrari. Prospects so far for automotive is cheap automobiles will triumph while luxury will be low demand. So far, Avtovaz will be increasing production by 20% next year and Japanese brands excluding Toyota will not be raising Russia prices. Jaguar and Landrover is limiting to excluding sales to Russia temporarly (screw you Tata motors) but the rest are staying.

I wonder if some Russian brand like UAZ or Zil (previously done) will try to get into the cheaper luxury market? I can imagine there is a lot willing to buy a cheaper but more luxurious car than a Lada Vesta...

Regular wrote:Problem with Marussia was that it focused on pseudo super car.
Instead they should have make "Volkswagen", targeting broader spectrum of customers.
Hell they are not bound to EU emission regulations, Russia should make big ass na engines

Mike E wrote:
They weren't selling well... Too expensive and too little costumers.

It isn't that small, but it probably could be extended.

The Volga was retired for that very reason, it was getting old.

Plunging car sales leave Russia’s auto industry running on empty

Results for 2014 show that Russia’s auto industry has been thrown into crisis by the devaluation of the ruble, with a drastic fall in car sales registered over the past year as Russians’ relative income has decreased and production costs have risen. According to observers, the situation is so critical that it is threatening the work of foreign producers in Russia, some of which have already announced a halt in production.

Russia’s car industry is facing drastic cuts in production as the devaluation of the ruble and inflation hit both consumers and manufacturers in the pocket, with statistics for 2014 showing a dramatic plunge in car sales against a backdrop of rising costs.
According to the Federal State Statistics Service (Rosstat), production of light cars in Russia in January 2015 decreased by 45 percent in comparison to December 2014, and by 26 percent in comparison to January 2014.
In turn, according to the Association of European Business, car sales in January 2015 also fell by about 25 percent in Russia.
Analysts for PricewaterhouseCoopers (PwC) say that in 2014 Russia's car market was determined by the complex macroeconomic situation in the country and the significant fall of the ruble. As a result, according to PwC statistics, sales of light cars in Russia (excluding LCVs) in 2014 declined by 10.1 percent to 2.3 million units.
Furthermore, the other BRICS countries (Brazil, Russia, India, China, South Africa) also experienced declines in car sales, except for China. At the same time, the developed markets in America, Europe and Japan showed a positive trend.
A complex situation
The fall in demand has already had an impact on producers. In the middle of February the Renault factory was closed for three weeks due to the lack of demand for cars.
In turn, the General Motors Corporation decided to suspend production at its plant in St. Petersburg from March 23 to May 15, even though in the beginning of October 2014 the enterprise had cut production to a single shift. Ford Sollers has also announced that it is ready to halt production in Russia.
"The situation in the car market is rather complicated, and in the near future we can expect a series of distributors to close," says Alexander Zilberman, project director at FinExpertise.

AbsoluteZero wrote:some not so good news about Russia's car industry, if its true, I hope the situation improves soon

http://rbth.com/business/2015/02/23/plunging_car_sales_leave_russias_auto_industry_running_on_empty_43917.html

Plunging car sales leave Russia’s auto industry running on empty

Results for 2014 show that Russia’s auto industry has been thrown into crisis by the devaluation of the ruble, with a drastic fall in car sales registered over the past year as Russians’ relative income has decreased and production costs have risen. According to observers, the situation is so critical that it is threatening the work of foreign producers in Russia, some of which have already announced a halt in production.

Russia’s car industry is facing drastic cuts in production as the devaluation of the ruble and inflation hit both consumers and manufacturers in the pocket, with statistics for 2014 showing a dramatic plunge in car sales against a backdrop of rising costs.
According to the Federal State Statistics Service (Rosstat), production of light cars in Russia in January 2015 decreased by 45 percent in comparison to December 2014, and by 26 percent in comparison to January 2014.
In turn, according to the Association of European Business, car sales in January 2015 also fell by about 25 percent in Russia.
Analysts for PricewaterhouseCoopers (PwC) say that in 2014 Russia's car market was determined by the complex macroeconomic situation in the country and the significant fall of the ruble. As a result, according to PwC statistics, sales of light cars in Russia (excluding LCVs) in 2014 declined by 10.1 percent to 2.3 million units.
Furthermore, the other BRICS countries (Brazil, Russia, India, China, South Africa) also experienced declines in car sales, except for China. At the same time, the developed markets in America, Europe and Japan showed a positive trend.
A complex situation
The fall in demand has already had an impact on producers. In the middle of February the Renault factory was closed for three weeks due to the lack of demand for cars.
In turn, the General Motors Corporation decided to suspend production at its plant in St. Petersburg from March 23 to May 15, even though in the beginning of October 2014 the enterprise had cut production to a single shift. Ford Sollers has also announced that it is ready to halt production in Russia.
"The situation in the car market is rather complicated, and in the near future we can expect a series of distributors to close," says Alexander Zilberman, project director at FinExpertise.

Russian car market may fall by 25-35% by the end of 2015, predicts PricewaterhouseCoopers in Russia. According to optimistic forecasts, this year in Russia it will be sold 1 million 750 thousand passenger cars (-25%), the baseline scenario assumes the reduction by 35% to 1, 520,000 vehicles. At the same time the largest drop at the end of 2015 will be shown by imports of foreign cars - by 48-55%. Sales of foreign cars of Russian production will fall by 23-33%. And car sales of domestic brands can be reduced by 10%, or even show a 5% increase.

"2014 was a difficult and controversial enough for the automotive industry. In this regard, market support from the state has the particular importance. The prolongation of successful program of parc renovation for 2015 will support the market, but the allocated funds will be enough, probably, for several months. In order to mitigate the drop in sales, it is advisable to consider the possibility of resuming of the program of preferential car loans or assistance of banks that are operating with car loans. Other possible measures to help car market may be initiatives aimed at the reduction of vehicle tax, the use of maternity capital for the purchase of vehicles, increase of public procurement of vehicles, produced in Russia. According to our estimates, if the market support will be provided in sufficient volume, a decline in sales for the year could reach 20-25%, otherwise it can grow exponentially to 35%,"- said the director of practice in providing services to companies of automotive industry PwC in Russia, Sergey Litvinenko.

kvs wrote:

AbsoluteZero wrote:some not so good news about Russia's car industry, if its true, I hope the situation improves soon

http://rbth.com/business/2015/02/23/plunging_car_sales_leave_russias_auto_industry_running_on_empty_43917.html

Plunging car sales leave Russia’s auto industry running on empty

Results for 2014 show that Russia’s auto industry has been thrown into crisis by the devaluation of the ruble, with a drastic fall in car sales registered over the past year as Russians’ relative income has decreased and production costs have risen. According to observers, the situation is so critical that it is threatening the work of foreign producers in Russia, some of which have already announced a halt in production.

Russia’s car industry is facing drastic cuts in production as the devaluation of the ruble and inflation hit both consumers and manufacturers in the pocket, with statistics for 2014 showing a dramatic plunge in car sales against a backdrop of rising costs.
According to the Federal State Statistics Service (Rosstat), production of light cars in Russia in January 2015 decreased by 45 percent in comparison to December 2014, and by 26 percent in comparison to January 2014.
In turn, according to the Association of European Business, car sales in January 2015 also fell by about 25 percent in Russia.
Analysts for PricewaterhouseCoopers (PwC) say that in 2014 Russia's car market was determined by the complex macroeconomic situation in the country and the significant fall of the ruble. As a result, according to PwC statistics, sales of light cars in Russia (excluding LCVs) in 2014 declined by 10.1 percent to 2.3 million units.
Furthermore, the other BRICS countries (Brazil, Russia, India, China, South Africa) also experienced declines in car sales, except for China. At the same time, the developed markets in America, Europe and Japan showed a positive trend.
A complex situation
The fall in demand has already had an impact on producers. In the middle of February the Renault factory was closed for three weeks due to the lack of demand for cars.
In turn, the General Motors Corporation decided to suspend production at its plant in St. Petersburg from March 23 to May 15, even though in the beginning of October 2014 the enterprise had cut production to a single shift. Ford Sollers has also announced that it is ready to halt production in Russia.
"The situation in the car market is rather complicated, and in the near future we can expect a series of distributors to close," says Alexander Zilberman, project director at FinExpertise.

In my view this is a one time transition due to the ruble devaluation and not the beginning of the collapse of the Russian automobile industry.
The only relevant number is year to year since there is an annual cycle in many economic activities.   So the 25% drop reflects the part of
this industry that involved imports.   Almost by definition the gap will be filled by domestic production.   Consumers are either going to have
to save more money or settle for "less".   C'est la vie.  



Anyway, Avtovaz seems to be getting its act together in terms of new models so the drop in Lada sales is likely due to people waiting for
the new models to hit the dealership floors:

TheArmenian wrote:
kvs,

I voted for your post because of the sales figures of vehicles during January.
Can you please indicate the source where you got the table from?

By the way, some of the biggest losers are the US makers: GM (Chevrolet and Opel) and Ford
Hurting the US automakers without placing sanctions

kvs wrote:

TheArmenian wrote:
kvs,

I voted for your post because of the sales figures of vehicles during January.
Can you please indicate the source where you got the table from?

By the way, some of the biggest losers are the US makers: GM (Chevrolet and Opel) and Ford
Hurting the US automakers without placing sanctions

Thanks.

I found the graph via another forum it's from the Association of European Businesses:

http://aebrus.ru/upload/iblock/4d5/eng_car-sales-in-january-2015.pdf

sepheronx wrote:

kvs wrote:

TheArmenian wrote:
kvs,

I voted for your post because of the sales figures of vehicles during January.
Can you please indicate the source where you got the table from?

By the way, some of the biggest losers are the US makers: GM (Chevrolet and Opel) and Ford
Hurting the US automakers without placing sanctions

Thanks.

I found the graph via another forum it's from the Association of European Businesses:

http://aebrus.ru/upload/iblock/4d5/eng_car-sales-in-january-2015.pdf

By that graph, it appears that Avtovaz may get their wish of owning more than 40% of the Russian car market.  That is what they said is their goal.

kvs wrote:

sepheronx wrote:

kvs wrote:

TheArmenian wrote:
kvs,

I voted for your post because of the sales figures of vehicles during January.
Can you please indicate the source where you got the table from?

By the way, some of the biggest losers are the US makers: GM (Chevrolet and Opel) and Ford
Hurting the US automakers without placing sanctions

Thanks.

I found the graph via another forum it's from the Association of European Businesses:

http://aebrus.ru/upload/iblock/4d5/eng_car-sales-in-january-2015.pdf

By that graph, it appears that Avtovaz may get their wish of owning more than 40% of the Russian car market.  That is what they said is their goal.

The clowns in NATO know that these sanctions are not hurting Russia, especially in the near term and not just the immediate shock effect.
This is why they are escalating the conflict in Ukraine.  They know they need war to destroy Russia's rise.   These sick f*cks need to pay
the ultimate price for such a policy.

KomissarBojanchev wrote:Russia has a proud history of producing reliable working peoples cars and the only reason they have a bad reputation is because people only believe superficial luxury in western brand names because of propaganda.

Regular wrote:

KomissarBojanchev wrote:Russia has a proud history of producing reliable working peoples cars and the only reason they have a bad reputation is because people only believe superficial luxury in western brand names because of propaganda.

I had chance to fiddle with almost all Soviet "reliable" working people cars. Tell me more luxury in western brands like in Ford, VW, Seat, Skoda, Audi. What luxury do You see in them?
Cause to be all honest Russian car industry still miles away from anything they produce. Even today.
Soviet cars sucked, motorcycles on other hand were cool