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Global automotive market trends defined on the PTFair opening day

Global automotive market trends defined on the PTFair opening day

Round table under the title - Global automotive market: major trends, present and future. Prospects for further development of the automotive component market in Russia, - was held on the first day of St Petersburg Technical Fair within the St Petersburg Industrial Congress and AUTOPROM Russia 2013 conference.

The session started with an optimistic statement of moderator Igor Korovkin, Chief Executive Officer of the Association of Russian Automakers, saying that volumes of automotive industry increased by 5% in comparison to the last year. Thus, total automotive manufacturing output has reached 84 bln cars per year.

The moderator also stressed that the Asia-Pacific region holds a leading position in the industry, whereas indices of regular manufacturers in Europe have significantly fallen. Achievements of Turkey and Russia as potential members of the European Union were noticeable against this background. For instance, Russia went two lines up from the thirteenth place in the list of global manufacturers in 2005 and holds the eleventh place now. According to the data of the last year, Russia holds the seventh place by the indices of automotive market. While the Asia-Pacific region is still holding the leading position in terms of sales, the volume of automobiles sold in Russia and Turkey increased by 5% comparing to the last year.

With automobiles being the only means of transport in Russia that carries out all kinds of transportation, the industry still has plenty of problems. Technological retardation and poor legislative base rank among the main obstacles according to the opinion of experts.

However, there is a positive dynamics: at the end of last year, Russian Government adopted a program for industry development and competitive growth for up to 2020. The first paragraphs of this program are devoted to automotive industry and are aimed to stimulate it in various aspects. Technical requirements for wheeled vehicle safety, in particular, will be improved alongside with implementation of environmental standards.

The strategic tasks for the industry development for the next 5-7 years were also defined. According to Igor Korovkin, the most important task is to create manufacturing facilities that could satisfy over 70% of car market demands and up to 90% of the trucking and bus market. Import share should also be increased up to 30% a year. Another obligatory point of market development strategy is to reduce Russian outflow of capital received from automotive sales. As experts say, these actions should trigger modernisation and successful development of the industry. According to Tatiana Arabadji, Editor-in-Chief of the Car Business Magazine, government measures, intended to create prerequisites to develop automotive industry and to attract foreign suppliers, should largely help Russia enter global supply chains. Her presentation also outlined possibilities for foreign group of companies operating in Russia. Manufacturing facilities of Nissan and Renault plants may allow reaching up to 30% and sometimes 60% in localization of car assembly. Whereas the French brand as one of the pioneers in localization is working with suppliers as active as possible and is planning to reach 70% in localization.  

Such problems of cooperation with Russian and foreign investors and peculiarities of national brand development were also discussed during this round-table meeting. Particular focus was given to safety and environmental issues. Participants of the meeting had a common feeling that automobile became a part of the Uniform Information Space and a significant and an integral part of modern life.

12.03.2013

Events:
AUTOPROM Russia 2013 (2013)