Russian Auto Industry

Forget all the armor, the REAL G of the parade!

Looks photoshopped

TheArmenian wrote:Looks photoshopped

the clouds maybe, everything else seems legit

I believe that the automotive industry was the one that was hit the worst. Car production fell by 21% this year. That alone explains any statistics about industrial output decline.

http://www.1prime.biz/news/transport_automobile/_Statistics_Russias_car_output_dn_21_to_480000_units_JanApr/0/%7B23C63F52-EF7A-4B29-A38B-7E2AA60DBAA8%7D.uif

But wait......A good 50% of car production in Russia is foreign owned (GM, Ford, Hyundai, Renault, Nissan, etc.)

On the other hand, most other industries did better. For sure, many other industries actually rose during the same period.

The only bad part about foreign car producers leaving the country is people losing their jobs. Their production facilities are not as important people think because the localization was well below what would be considered good. Now if the government can relocate these workers to other places in a very fast way, the issue will be solved.

You don't want to produce anymore? Cool, fuck off then. Government should buy out their facilities and implement them with the import substitution program.

Most shops are joint projects. Ford sollers, sollers itself, avtovaz (renault and Nissan), Kamaz
Etc all produce various lines of vehicles. GM shop were they made Opel and others will stop production of Opel but keep producing other brands. With production dropping of a specific line, many lose their jobs unfortunately, but the plants are still operational.

The brands that will walk out of this with ease are the ones who use localized parts and manufactures rather than just assembly. So ones like Avtovaz, Nissan, Renault, Kia, Great wall, etc will come out ahead. As well, the ones producing cheap auotomobiles. As with less spending money, people will be frugal so when they will spend, it will be on cheaper models. Nissan for example agreed to take a hit at their profit margins and sell their various models at either same price before currency exchange adjustments, or even less. So guarantee that Nissan will do well in future.

Problem with the automarket is that like oil, it goes through gluts. A mixture of over production, with slowness in economy, it always hits low points. We face same crap here in Canada. Problem is, vehicle sales account for half of our GDP.

Problem I also see is that Russia went with the idea that mass amounts of automotive manufacturing will bring in lots of cash. Semi true but they shouldnt have concentrated on it too much, as well should have been more forceful and made sure it was manufacturing rather than simple assembly.

Avtovaz sees that they will be able to increase exports significantly due to ruble devaluation. Much like lada niva days in Brazil or now production of granta in Egypt.

Russian car sales fell 38% in May as ruble gains eased pressure

MOSCOW (Bloomberg) -- Russian car sales slumped 38 percent in May. It's the country's a fifth straight month of decline this year, but the dip was less severe than a 42 percent drop in April as government measures to assist the industry start to provide some help.

Sales of new cars and light commercial vehicles dropped to 125,801 units last month from 201,487 a year ago, the Association of European Businesses in Russia said Monday in a statement.

"This relative improvement is unlikely to bring about a fundamental turnaround for the market," Joerg Schreiber, chairman of the business group's automobile manufacturers committee, said in the statement. Still, it "should help to slow down the pace of year-on-year sales decline in the coming weeks and months," he said.

The group will update its 2015 forecast next month, Schreiber said. Sales may contract 24 percent this year after a 10 percent drop last year, according to its estimates. Five-month sales are also down 38 percent with 641,933 units sold through May.

Russian consumer demand, which powered growth for more than a decade, withered as the ruble weakened last year and inflation jumped to a 13-year high in March. The government offered subsidized auto loans and allowed consumer leasing in the second quarter after a used-car rebate program started last year failed to ignite sales.

Car costs

The ruble lost about half of its value against the dollar last year, inflating the cost of cars, most of which are manufactured abroad or produced in Russia from imported parts. The ruble has gained more than 8 percent this year, the best performer of currencies tracked by Bloomberg.

Russian state support may boost auto sales by at least 300,000 units this year, Industry Minister Denis Manturov said last month. Sales under the subsidized auto loan program reached 38,500 vehicles in the first month and a half after its introduction, he said.

Russia has succeeded in getting inflation under control, central bank Governor Elvira Nabiullina told lawmakers Monday in Moscow. She said she sees price growth "easing considerably" while inflation risks remain.

Consumer prices rose 15.8 percent in May from a year ago, compared with 16.9 percent in March, the fastest since 2002.

After a 1.9 percent decline in the first three months, Russia's recession will deepen in the second and third quarters, with gross domestic product set to shrink 4 percent in each, according to Bloomberg surveys.

The weaker ruble and inflation are eating into consumers spending and sending real disposable income down 4 percent in April, according to the Federal Statistics Service.

http://europe.autonews.com/article/20150608/ANE/150609881/russian-car-sales-fell-38-in-may-as-ruble-gains-eased-pressure

Pretty soon Europe will be flooded with cheap Chinese cars manufactured in Russia. Good news for everyone except  for EU car industry.

Chinese auto giant «Lifan» started the construction of full-cycle plant in Lipetsk region

http://sdelanounas.ru/blogs/65202/

I have my eye on sweet Range Rover knockoff for 15000 bucks.



Also:

AvtoVAZ has announced the first statement on the conveyor body LADA XRAY

http://sdelanounas.ru/blogs/65151/



The prototype Lada XRay seen on tests in Togliatti

http://cont.ws/post/88258

Futuristic Lada Vesta Revs Up to Hit the Roads in Russia

Car manufacturer AvtoVAZ announced it’s begun pre-series production on its brand-new Lada Vesta model on the company’s 49th birthday.

Four hundred and fifty units of the car — a restyled version of the concept model — are due to be assembled in this pre-production phase before the Vesta goes serial, which is scheduled for September 25...........continued

http://sputniknews.com/science/20150721/1024854224.html

Russia's Sollers, Toyota cancel Land Cruiser Prado production contract

MOSCOW, August 17. /TASS/. Russian car producer Sollers and Japanese car giant Toyota cancelled contract on manufacturing Land Cruiser Prado cars in Russia’s Far East, Sollers official representative told TASS on Monday.

"The production was suspended in July. As of today the contract has been cancelled," he said, adding that in order to resume manufacturing of Toyota cars at Sollers plant the 2 sides will have to make a new contract.

Earlier Toyota announced launch of upgraded version of Land Cruiser Prado in Russia. The company said the new model is manufactured at Toyota’s Tahara plant in Japan and is imported to Russia.

Sollers representative said the manufacturing site, which earlier produced LC Prado, currently manufactures Mazda cars.

Sollers owns production sites that produce Russian UAZ and Korean SsangYong SUVs, Japanese ISUZU trucks, and ZMZ petrol and diesel engines. It works in partnership with Ford, SsangYong, Toyota, Mazda and Isuzu.

http://sputniknews.com/russia/20150728/1025145424.html

This Wolf supercar would be terrific if it is ever produced.
If little companies like Pagani/Koenigse can produce supercars, why not Russia?

It'll also be interesting to see what the presidential line of cars will be like. And whether the Zil or Marussia badge will be used.

With the large number of Russian/CIS supercar buyers, there's no reason why Russia cant be a manufacturing centre for them in thef uture.

Guy can keep dreaming.

Since domestic made cars using majority to 100% domestic components was what was accounted as 90% of cars sold this year in Russia (and cheaper models), I find it highly unlikely that really expensive cars will ever gain traction again.

I too am awaiting for Zil's upcoming limo. Marussia is no longer existing. If the Zil works out great, they could release regular sedans with similar engine and components, which would make it cheaper over time, and still give the so called luxury.

sepheronx wrote:Guy can keep dreaming.

Since domestic made cars using majority to 100% domestic components was what was accounted as 90% of cars sold this year in Russia (and cheaper models), I find it highly unlikely that really expensive cars will ever gain traction again.

I too am awaiting for Zil's upcoming limo. Marussia is no longer existing. If the Zil works out great, they could release regular sedans with similar engine and components, which would make it cheaper over time, and still give the so called luxury.

Good thing is that it will be a Putin limo, a 4x4, a standard saloon/sedan etc and a people carrier.

I know the staff were moved to some other division and Marussia Cars is effectively gone. But Marussia Motorsport still exists (albeit in an also ran form).  It would be nice tho to have Zil as "super elite", Marussia as "sport/prestige", Lada as "competitive on price" and another in the Audi/BMW category.

With this, I'm thinking more about labels/branding. After all Rolls Royce is BMW, Ferrari is still "Fiat" (I think), Lambo is "Volkswagen/Audi" etc etc. Atleast from one perspective...

To me, the identity of car makes is as important as who's actually doing the engineering.
I mean Hyundai are probably brilliant mechanically, but people don't say "look at him, he's got a Hyundai".

During corporate holiday AVTOVAZ upgraded the equipment

Firebird wrote:

sepheronx wrote:Guy can keep dreaming.

Since domestic made cars using majority to 100% domestic components was what was accounted as 90% of cars sold this year in Russia (and cheaper models), I find it highly unlikely that really expensive cars will ever gain traction again.

I too am awaiting for Zil's upcoming limo. Marussia is no longer existing. If the Zil works out great, they could release regular sedans with similar engine and components, which would make it cheaper over time, and still give the so called luxury.

Good thing is that it will be a Putin limo, a 4x4, a standard saloon/sedan etc and a people carrier.

I know the staff were moved to some other division and Marussia Cars is effectively gone. But Marussia Motorsport still exists (albeit in an also ran form).  It would be nice tho to have Zil as "super elite", Marussia as "sport/prestige", Lada as "competitive on price" and another in the Audi/BMW category.

With this, I'm thinking more about labels/branding. After all Rolls Royce is BMW, Ferrari is still "Fiat" (I think), Lambo is "Volkswagen/Audi" etc etc. Atleast from one perspective...

To me, the identity of car makes is as important as who's actually doing the engineering.
I mean Hyundai are probably brilliant mechanically, but people don't say "look at him, he's got a Hyundai".

We can not measure the quality of the luxury cars from the quality of the main brands, but yes, this would be the relation:

Volkswagen owns:
- Bentley
- Lamborghini

Fiat owns:
- Ferrari

BMW owns:
- Rolls Royce

sepheronx wrote:During corporate holiday AVTOVAZ upgraded the equipment

I clearly remember how RBK was creating hysteria out of this. Turns out they were actually modernizing their facility for the upcoming models.

Neutrality wrote:

sepheronx wrote:During corporate holiday AVTOVAZ upgraded the equipment

I clearly remember how RBK was creating hysteria out of this. Turns out they were actually modernizing their facility for the upcoming models.

A bunch of sites were hysterical about it. Finmarket.ru used to be a really good site but now they just simply post a lot of media with modified meanings. For instance, they complain about drop in production in the country, drop in retail sales, drop in this and that. But what they don't mention is that it is all compared to last year (before sanctions, counter sanctions, currency drop and oil crashing). But if you go through a month on month basis, retail, production, etc are increasing. Even they stated that the economy was so bad that avtovaz that they closed the plant for "holiday". Turns out, they were wrong.

Not surprising.

sepheronx wrote:Guy can keep dreaming.

Since domestic made cars using majority to 100% domestic components was what was accounted as 90% of cars sold this year in Russia (and cheaper models), I find it highly unlikely that really expensive cars will ever gain traction again.

I too am awaiting for Zil's upcoming limo. Marussia is no longer existing. If the Zil works out great, they could release regular sedans with similar engine and components, which would make it cheaper over time, and still give the so called luxury.

AFAIK it's Sollers that's making it now, not ZiL which doesn't have the resources for new generation limo R&D and production

3D render of Lada, may be ?

http://you-journal.ru/humor/foto/vzglyad-xishhnika-skorost-pantery?_utl_t=miCCCP

flamming_python wrote:

sepheronx wrote:Guy can keep dreaming.

Since domestic made cars using majority to 100% domestic components was what was accounted as 90% of cars sold this year in Russia (and cheaper models), I find it highly unlikely that really expensive cars will ever gain traction again.

I too am awaiting for Zil's upcoming limo. Marussia is no longer existing. If the Zil works out great, they could release regular sedans with similar engine and components, which would make it cheaper over time, and still give the so called luxury.

AFAIK it's Sollers that's making it now, not ZiL which doesn't have the resources for new generation limo R&D and production

OK, understood.  Makes sense, since Sollers induction as a company, it grew rather large and quickly.  Hope to see a Sollers brand car someday, and that it is exported to various countries.  Heck, even just UAZ alone would make me happy.

higurashihougi wrote:3D render of Lada, may be ?

Probably fan made art. Although, I could see Lada eventually getting into the luxury market. But since Lada isn't really Russian anymore, I am hoping some other company like Sollers or UAZ decides to get into making luxury cars.

''Weak Ruble Drives Russian Car Production Boom''

http://sputniknews.com/russia/20150826/1026213077.html

My favourite part:

The plan to increase production for exports to wider markets is an unprecedented step for foreign car manufacturers based in Russia, where production has traditionally focused on the car market in Russia and the CIS.
..................
"Western Europe could be among the regions which import such budget cars. For example, when Renault developed the Romanian Dacia brand, in the beginning it was also supposed that these cars are only for developing countries, and now you can see them anywhere in the European Union," explained Morzheretto, who named the Volkswagen Polo sedan, which is produced only in Russia at the Volkswagen factory in Kaluga, as one such possible export.

And they thought food embargo was bad...

flamming_python wrote:

sepheronx wrote:Guy can keep dreaming.

Since domestic made cars using majority to 100% domestic components was what was accounted as 90% of cars sold this year in Russia (and cheaper models), I find it highly unlikely that really expensive cars will ever gain traction again.

I too am awaiting for Zil's upcoming limo. Marussia is no longer existing. If the Zil works out great, they could release regular sedans with similar engine and components, which would make it cheaper over time, and still give the so called luxury.

AFAIK it's Sollers that's making it now, not ZiL which doesn't have the resources for new generation limo R&D and production

If fucking spain which has far less experience, and in a massive crisis can still churn out millions if SEATs then I find it hard to believe neither ZIL, GAZ, UAZ has a penny to spare to create some middle class cars, volga preferably.

Anyway, this is how I think the Russian brands should be:

GAZ Volga- The usual trucks and cutting edge sedans of the Volga brand, basically the Russian Lexus


UAZ- Producer of both budget and luxury SUVs plus vans


VAZ- budget and middle class cars of all kinds in the Lada brand plus the niva jeep, also supercars


ZIL-  and luxury cars of all types, and middle class ones under the Moskvitch brand,  plus also Marussia supercars and presidential limousines which will just be a brand name


ZAZ(once Novorossiya is liberated)-Low class small family cars and budget sports cars under the Tavria brand

Too many automotive companies. Far too many, even for a country like Russia.

I think it may be in their best interests to start merging some brands like UAZ and GAZ, while VAZ takes ZIL. Combined revenues will allow them to produce even better automobiles, and combined, could have a better chance of filling various countries with all types of products as there is 1 company involved in agreements rather than hald a dozen.

Looks like Russia is going full 'Murrica!

"GAZ Group" produced a motorhome on the basis of "Gazelle Next''

http://www.zr.ru/content/news/808202-gruppa-gaz-podgotovila-avtodom-na-baze-gazeli-next/