The industry in facts and figures
- 6th in the world by volume of sales
- Total amount of investment over US$7 billion by 2012
- 49 agreements with leading car makers
The Russian automotive market has great potential for competition in the local economy and enjoys government support at all stages of setting up a business.
Experts estimate the automotive industry accounts for about 3% of the country’s GDP.
Growth rates:
- In the first six months of 2008, the number of local makes sold rose by 27% compared to the same period in 2007, and sales of foreign cars increased by 43%, which is more than in Germany for the same period of time.
- In the first quarter of 2008, the Russian automotive industry growth rates were higher than the world average of 4-6% thus making it one of the global leaders.
- It is expected that from 2007 to 2015, the share of the Russian automotive industry in the global growth of car manufacturers will be 6% to 12% and will place it among global industry leaders.
Why will the automotive market continue to grow?
1. The Russian economy has been growing at a minimum rate of 7% a year, leading to growing disposal income among the population. The share of money spent on cars follows the growing expenditure in real estate.
2. The development of consumer lending and, in particular, automobile lending, as well as the improvement of car registration procedures motivate people to buy cars.
3. Natural competitive environment: wider products range and lower process coupled with development of local production and dealer chains.
4. The number of cars per family is growing. At the moment there are 200 cars per 1000 people, while in Eastern Europe there are more than 300 cars. The middle class is also growing.
5. Automobile models are continuously being updated.
Experts believe that this will result in demand for automobile parts for primary market of foreign cars reaching US$10 billion by 2012.
For reference: a specific aspect of state support of the mechanism of factory assembly is that companies have the right to lower customs duties for import of automobile parts. Customs rates can be 0% to 5% depending on the price of the automobile parts. That is, on average the customs duty for import of automobile parts is 12% , while under agreement on factory assembly it is about 3%.
The list of foreign car manufacturers who produce their cars in Russia through factory assembly approach includes Chevrolet, Chrysler, Citroën, Fiat, Ford, General Motors, ISUZU, KIA, Mitsubishi, Nissan, Peugeot, Renault, SsangYoung, Suzuki, Toyota, Volkswagen.
Since August 2005, 49 agreements have been signed between global automobile industry leaders and producers of automobile parts and Russia (according to the Ministry for Economic Development). The total amount of investments under existing and planned engagements will exceed US$7 billion.
At the moment several automotive clusters exist or are being developed in St. Petersburg, Kaluga region, Samara region and in the Republic of Tatarstan.
Sales of foreign marks in Russia (2006, 2007, 8 months 2008/2007)
| Manufacturer | 2006 | 2007 | %
(2007 to 2006) |
8 months
2007 |
8 months 2008 | % |
| Chevrolet | 111458 | 190553 | 71% | 114964 | 159445 | 39% |
| Hyundai | 100685 | 147843 | 47% | 80477 | 143282 | 78% |
| Ford | 115985 | 175793 | 52% | 105858 | 128814 | 22% |
| Toyota | 95689 | 145478 | 52% | 99503 | 127155 | 28% |
| Nissan | 75514 | 116498 | 54% | 72437 | 104428 | 44% |
| Mitsubishi | 68845 | 100609 | 46% | 56555 | 79384 | 40% |
| Renault | 72484 | 101166 | 40% | 62588 | 75540 | 21% |
| Daewoo | 66717 | 91302 | 37% | 59297 | 71274 | 20% |
| Opel | 19983 | 66329 | 232% | 39820 | 70293 | 77% |
| Kia | 59993 | 78616 | 31% | 48882 | 66179 | 35% |
| Mazda | 32290 | 50592 | 57% | 28752 | 52479 | 83% |
| Honda | 15723 | 38631 | 146% | 19770 | 50494 | 155% |
| Skoda | 14835 | 27535 | 86% | 17021 | 32860 | 93% |
| Volkswagen | 19186 | 32002 | 67% | 18961 | 30570 | 61% |
| Peugeot | 15287 | 24951 | 63% | 15596 | 30056 | 93% |
| Suzuki | 16121 | 28597 | 77% | 18011 | 27118 | 51% |
| Fiat | 1382 | 15310 | 1008% | 10598 | 19430 | 83% |
| Subaru | 7604 | 15553 | 105% | 9856 | 14514 | 47% |
| Volvo | 10849 | 21077 | 94% | 11865 | 14513 | 22% |
| Land Rover | 6299 | 12606 | 100% | 7307 | 13996 | 92% |
| Chery | 10768 | 37120 | 245% | 24866 | 12643 | -49% |
| BMW | 9031 | 14008 | 55% | 9273 | 12273 | 32% |
| Audi | 10050 | 15313 | 52% | 10079 | 11643 | 16% |
| Mercedes-Benz | 9316 | 15330 | 65% | 10157 | 11098 | 9% |
| Lexus | 10065 | 13148 | 31% | 9379 | 10385 | 11% |
| Ssang Yong | 4018 | 11277 | 181% | 7459 | 9858 | 32% |
| Citroen | 11934 | 11206 | -6% | 7472 | 7504 | 0% |
| Great Wall | 4788 | 6238 | 30% | 3503 | 6761 | 93% |
| Volkswagen Commercial Vehicles | 3402 | 5905 | 74% | 3549 | 6630 | 87% |
| Infiniti | 729 | 5540 | 660% | 3229 | 4667 | 45% |
| BYD | 1694 | 2566 | 51% | 1152 | 4020 | 249% |
| Dodge | 1068 | 2581 | 142% | 1662 | 3424 | 106% |
| Lifan | – | – | – | – | 3026 | – |
| Jeep | 1571 | 1890 | 20% | 1363 | 2179 | 60% |
| Mercedes-Benz Vans | 1890 | 2675 | 42% | 1678 | 1936 | 15% |
| Porsche | 1323 | 2249 | 70% | 1527 | 1589 | 4% |
| IKCO | 4534 | 5260 | 16% | 3262 | 1578 | -52% |
| Seat | 0 | 248 | – | 20 | 1479 | – |
| FAW commercial | 1288 | 2989 | 132% | 1553 | 1405 | -10% |
| Cadillac | 416 | 1485 | 257% | 927 | 1243 | 34% |
| Chrysler | 1382 | 1165 | -16% | 904 | 1127 | 25% |
| Jaguar | 893 | 1135 | 27% | 664 | 1125 | 69% |
| Saab | 383 | 757 | 98% | 492 | 881 | 79% |
| MINI | 496 | 678 | 97% | 456 | 631 | 38% |
| Hafei | 1253 | 2246 | 79% | 1345 | 512 | -62% |
| Hummer | 360 | 772 | 114% | 418 | 460 | 10% |
| Brilliance | – | – | – | – | 300 | – |
| Alfa Romeo | 54 | 808 | 1396% | 658 | 221 | -66% |
| Isuzu | – | – | – | – | 2 | – |
| Total | 1019629 | 1645630 | 61% | 1005165 | 1432424 | 43% |