The Russian automotive industry experienced a milestone year in 2011.
Some of the noted happenings and highlights include:
• Automotive output hit a production record triggered by strong market recovery, production ramp-up plans and new investment in the sector.
• Sales rose by approximately 40% year on year, almost reaching the pre-crisis level. Sales were driven by pent-up demand, recovery of consumer confidence, credit availability and government incentives.
• The Russian Government passed an amendment to the industrial assembly legislation leading to a major change of the rules. The change led to a consolidation of the original equipment manufacturer (OEM) sector and emergence of a few significant major alliances of players.
• The suppliers sector showed a further restructuring and reshaping, leading to new investment opportunities and an increase of the original equipment (OE) share of market.
• The retail segment has been reshaping through more efficient operations, consolidation and market expansion.
• Russia has finally been accepted into the World Trade Organization (WTO), which will lead to further changes in the industry and its competitive landscape. It will create more opportunities and challenges for market players.
This report outlines our view of the current state of the Russian automotive industry and our outlook for the evolution of this high-growth market in the coming years.
We remain positive about the long-term prospects of the Russian automotive industry and believe that the next few years will bring additional significant investment, particularly in the supplier sector. We are eager to share our market experience and assist you in your business activities by means of prudent investment, as well as risk, operational and cost management advisory.
To download 28-page report, please click here.
Source: Ernst & Young – GAI