Russia: Opportunities for Swiss Subcontractors in the
Automotive Sector
RUSSIAN CAR INDUSTRY
OFFICIAL PROGRAM
PARTNER
RUSSIA: OPPORTUNITIES FOR SWISS SUBCONTRACTORS IN THE AUTOMOTIVE SECTOR
Russia will become Europe’s biggest car market by 2020, when it
will reach annual sales volume of 4.4 million, the Boston
Consulting Group forecasted recently in a study, despite the fact
that car sales are projected to decrease in 2013. In mid-term
progress since Russia is an emerging market with a low vehicle
ownership per capita (280 cars per 1000 people), people are still
expected to accelerate their demand for new cars until a
saturation point of around 400 automobiles per 1000 residents is
reached in approximately 2020-2022. Engines of continued
growth, which remain in place, include a relatively small and
aging car park, improving consumer income and an unabated
appetite to own a respectable and reliable car as a symbol of
social status and a sign of independence and personal mobility in
a vast country.
The current localization process of international car
manufacturers in Russia opens several business opportunities
for Swiss producers of automotive components and equipment
for the automotive sector.
The main goal of the Russian authorities is to boost the local
production. In this context Swiss automotive suppliers can target
several customer groups in Russia: Distributers for the spare part
market, International OEMs, National OEMs, Joint ventures
OEM, International OES, National OES, Joint ventures OES.
International OEMs and OESs may probably stick to their proven
suppliers, which they know from other markets. If a supplier does
not have such established relations, a more promising strategy
could be to tackle the local or joint ventures car and components
producers, which are currently looking actively for foreign
components in order to increase the quality of their cars or
automotive components. In this context many of them will have to
invest considerable sums in order to modernize their production
facilities.
The demand for imported tier 2 and tier 3 components will
probably rise within the next year, as the localization of tier 1
components production gains ground in Russia. Here again,
international companies will probably rely on proven business
relations, but joint ventures or innovative Russian companies
could be more interested in new offers.
Language: English
Number of pages: 130
Author: Julie Bächtold, Senior Trade Advisor, SBH Russia
Northwestern Cluster: Daniel Rehmann, RussiaContact
Other Reports: Are you interested in other Reports for other
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Contents
9.7. Company profiles OES _____________________ 63
1. INTRODUCTION _____________________________5
2. LEGAL ENVIRONMENT/ BUSINESS CLIMATE ____5
9.8. Support Measures of the Nizhny Novgorod Government87
9.9. Support Measures of the Samara Government _____ 89
9.10. Support Measures of the Tatarstan Government ___ 92
3. RUSSIAN MARKET FOR VEHICLES AND
9.11. Support Measures of the Ulyanovsk Government ___ 94
AUTOMOTIVE COMPONENTS___________________12
4. AUTOMOTIVE PRODUCTION IN RUSSIA ________16
10. NORTHWESTERN CLUSTER ________________ 95
10.1. General Information on St. Petersburg / Leningrad
5. SWISS AUTOMOTIVE SUPPLIERS IN THE RUSSIAN
Oblast
98
MARKET ____________________________________22
10.2. General Information on Kaliningrad __________ 100
10.3. SWOT-Analysis Northwestern Cluster __________ 101
6. CUSTOMERS ______________________________24
7. MARKET ENTRY STRATEGIES ________________26
10.4. Company Profiles OEMs __________________ 102
10.5. Company Profiles OES ___________________ 108
10.6. Support Measures of the St. Petersburg Government 119
8. THE CENTRAL CLUSTER ____________________29
8.1. Kaluga Oblast ___________________________ 30
8.2. Moscow Oblast __________________________ 31
8.3. SWOT-Analysis Central Cluster _______________ 32
8.4. Company Profiles OEMs ____________________ 32
10.7. Support Measures of the Leningrad Oblast Government119
10.8. Support Measures of the Kaliningrad Oblast
Government ______________________________ 120
11. OEMS OUTSIDE THE CLUSTERS ____________ 120
8.5. Company Profiles OES _____________________ 39
8.6. Support Measures of the Kaluga Government _____ 49
8.7. Support Measures of the Moscow Oblast Government 52
12. EVENTS AND MEDIA ______________________ 127
13. IMPORTANT ADRESSES ___________________ 128
8.8. Central Cluster Development_________________ 52
14. CONCLUSIONS / RECOMMENDATIONS ______ 129
9. VOLGA CLUSTER___________________________53
9.1. The Nizhny Novgorod Oblast _________________ 53
9.2. The Samara Oblast________________________ 54
9.3. Tatarstan ______________________________ 55
9.4. The Ulyanovsk Oblast______________________ 55
9.5. SWOT-Analysis Volga Cluster ________________ 56
9.6. Company profile OEMs ____________________ 56
List of tables
Table 1: Industrial Assembly Regime ____________________________________________________________ 7
1. Introduction
After modest beginnings in Tsarist Russia, the Soviet auto industry caught up during the massive industrialization under Stalin
and became the fifth largest automotive producer in the world in the 1980s. The annual production at that time was approaching
1.8 million units with most production plants being located on the territory of the Russian SFSR.
Nevertheless, from the very beginning, and even in its best years, the Soviet auto industry was heavily dependent on foreign
know-how. Ford was a pioneer by establishing the first Soviet mass automaker GAZ in Nizhny Novgorod in 1929 and AZLK in
Moscow one year later. At the beginning of the 1960 Fiat was chosen by the Soviet authorities as knowledge partner to build a
modern car for the Soviet mass market. In the Samara oblast within only 4 years a huge automotive plant was built along with a
new city for more than half a million inhabitants. This city was named Togliatti. The territory of the future Volga Federal district
became then the centre of the Soviet automotive industry including Izhevsk (Udmurtia) and its automotive plant built with the
assistance of Renault and Naberezhnye Chelny (Tatarstan) with Europe’s largest heavy truck plant KAMAZ, constructed with
the support of German and US-companies, as other locations.
One of the peculiarities of the Soviet automotive industry was the fact that these plants were designed as huge vertically
integrated manufacturing units, where almost every component down to the screws were produced in-house.
After the crash of the Soviet Union, the Russian automotive manufacturers continued to produce car models designed in the
1970s. Even today you can see a lot of them on Russian streets outside big cities.
Already in the 1990s it became obvious that the Russian car industry cannot bring its production to a decent technological level
on its own. As the sector is of tremendous importance for the country with 600 000 people directly being employed and some 23 million involved in related industries, the Russian authorities decided to seek foreign support again. By utilizing the carrot and
stick approach they managed to convince the international automobile corporations to first assemble their cars for the Russian
market in Russia and later localize the production to a certain grade.
Due to the increasing localization of the production of foreign brands and the improvement augmentation of quality and
technological level of local brands, the Russian automotive sector opens opportunities for Swiss suppliers.
2. Legal environment/ Business climate
After the economic crisis in 2008 it became clear that the Russian automotive industry was in a difficult state 1 and could not
recover without external assistance. Given the importance of the sector for the Russian industry as a whole, the government
decided to draw an action plan for the restructuring of the sector entitled the “Strategy for the Development of the Automotive
Industry of the Russian Federation till 2020”. This strategy provides the framework for the future development of the entire
automotive value chain.2 According to the strategy the industrial policy of the Russian authorities should pursue the following
priorities in the automotive sector:

Stimulation of development and production of innovative vehicles and vehicle components, creation of new and
modernization of operating producing units in the territory of the Russian Federation
1
Minpromtorg Rossii: Strategiya razvitiya avtomobilnjy promyshlennosti Rossiyskoy Federacii na period do 2020 goda, p.11-21
EAC: Market Opportunities for the European Automotive Industry in Russia, Mai 2013, http://eacconsulting.de/uploads/media/Automotive_Studie_Russland_2013.pdf, p. 7
2
RUSSIAN CAR INDUSTRY
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




Manufacturing new Russian vehicles on par with world technical standards when it comes to safety, reliability, fuel
efficiency, environmental characteristics
Development in the territory of the Russian Federation of high-quality production of vehicle components for export
Development of regional cluster initiatives for production of vehicles and vehicle components
Emerging role of research in development and improvement of vehicles, vehicle components and production
technologies in the automotive industry
Development of constructive partnership of national automakers and developers with automotive industry groups3
The target of the Strategy is to manufacture till 2020 80% of the vehicles sold in Russia in the country, to raise the share of the
automotive sector to 2.8% of the GDP and the combined value added along the supply chain in Russia to a minimum of 50
billion EUR.4
In order to implement the Strategy the Russian authorities fostered the close cooperation of the traditional Russian automotive
companies with strong international corporations. Additionally, they marketed actively Russia as a production location among
the leading automotive producers in the world. The success of these efforts is evident in the announcement of the Russian
Deputy Minister for Industry and Trade, Alexey Rakhmanov: “We look towards the future of the Russian auto industry with a
sense of optimism – for us, it has evolved from something markedly national into a rather multifaceted, international industry.”5
In order to persuade foreign car manufacturers to localize their production in Russia, the government undertook several
measures to improve the investment climate: Officials did their best to attract direct investment by changing tax policy,
removing administrative barriers, developing infrastructure, simplifying customs procedures, providing investment guarantees
and co-financing investment projects.
The main tax and customs preferences were provided within specially defined industrial assembly regimes, which were
regulated mainly by the decrees No. 166 and 566 of the government of the Russian Federation. Companies signing investment
agreements under these decrees profited inter alia of preferential customs duties rates for car components (0%-5%). But in its
first redaction despite the efforts to favour the production of local components over imports, two main factors inhibited the
growth of local production: the relatively low quality of auto components manufactured by traditional Russian components
producers (by various estimates, only up to 5% of them comply with ISO/TC-16949), and the very low levels of unit demand
from any one Russian automotive factory for any one component. The latter was taken into account in new amendments to the
decrees No. 166 and 566, according to which car manufacturers willing to extend their reduced customs duties until 2020, have
to commit to much larger capacities, increased localization and research and development activities. Due to the requested deep
factor of localization for OEMs (55-60% instead of the earlier 30%) even the production of engines and gearboxes is planned.
OEMs willing to conclude an investment agreement under decree 166 had to submit a corresponding inquiry till July 2013.
3
Russian Automotive Market Research: Viktor Khristenko, Minister of Industry and Trade of the Russian Federation at the session of Government of the Russian
Federation introduced the Development Strategy of the Automotive Sector up to 2020, 09.03.2010,
http://www.napinfo.ru/en/138/147/149/381/?nid=1273&a=entry.show&cp=
4
EAC: Market Opportunities for the European Automotive Industry in Russia, Mai 2013, http://eacconsulting.de/uploads/media/Automotive_Studie_Russland_2013.pdf, p. 7
5
AEB Business Quarterly. Summer 2012, p 13, Interview with Alexey L. Rakhmanov, Deputy Minister for Industry and Trade
RUSSIAN CAR INDUSTRY
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Table 1: Industrial Assembly Regime
Source: Ernst&Young: An overview of the Russian and CIS’ automotive industry, February 2012, p.16
Original component suppliers are to benefit from much more flexible rules with a localization rate of 35-45% depending on the
product type. Around 180 declarations of intent of OES have been signed by foreign suppliers and the Russian government, of
which almost 70 were converted into binding investment agreements.6 If the remaining automotive suppliers want to profit from
the new industrial assembly regime they are to submit their business plans to the authorities not later than December 31 st,
2013.7
According to the Russian Governmental Automotive Strategy 2020 the current vertical specialization of the Russian OES
should be transformed into a horizontal one. As for now, each domestic OES produces components and spare parts of particular
categories for a specific OEM, which leads to small production volumes and capacities, lack of competition, poor product quality
and a lack of incentives to invest in the development of new products.8
The strategy foresees that the OES will grow bigger and produce components and spare parts for more than one OEM. On the
other hand, each category should be produced by several competing manufacturers. These improvements should make it
possible to establish a component production, which corresponds to the state-of-the-art technology and manages at the same
time to be economically profitable.
To implement this scenario, the Russian government is ready to invest 148.5 billion RUR in the modernization of production
facilities and R&D. The last economic crisis has facilitated the restructuring of the sector. Russian companies have come to the
point where they understand that they need to share high-quality assets and market access in exchange for technical and
financial support.
The entrance of Russia in the WTO in mid-2012 has changed the business environment for car manufacturers producing in
Russia. The preferential customs duties granted under the decrees 166 and 566 of the government of the Russian Federation
contradict the provisions of the WTO’s General Agreement on Tariffs and Trade. Russia had to negotiate with the WTOmembers and agreed to decrease the timeframe for preferences to 1st July, 2018 (as opposed to 2020 as stipulated by the
investment agreements).9 Furthermore this will lead to a reduction of the customs duties rates for the import of new cars from
25% to 15% 2011-2018. This decrease in protective measures for automotive producers manufacturing in Russia could result in a
certain increase of the share in overall sales of foreign produced vehicles, especially during the final three years.10 In order to
compensate the cessation of the tax benefits, the Russian government intended initially to introduce a recycling fee for imported
cars. But under the pressure of the EU, this fee was then also declared mandatory for cars produced in Russia. According to the
newest plans of the authorities the car manufacturing companies in the country should receive subsidies linked to every car
6
EAC: Market Opportunities for the European Automotive Industry in Russia, Mai 2013, http://eacconsulting.de/uploads/media/Automotive_Studie_Russland_2013.pdf, p. 9
7
AEB Business Quarterly. Summer 2012, p 17, Interview with Artyom Kursakov, Head of Government Relations, Volkswagen Group Rus OOO
8
Minpromtorg Rossii: Strategiya razvitiya avtomobilnjy promyshlennosti Rossiyskoy Federacii na period do 2020 goda, p.23.
9
AEB Business Quarterly. Summer 2012, p 22, Interview with Maria Donchevskaya, Associate, CMS
10
Lexology: Russia’s accession to the WTO: implications for the automobile industry, Dr. Thomas Heidemann and Dr. Maria Donchevskaya, CMS,
http://www.lexology.com/library/detail.aspx?g=35ac1c9f-dd8e-4cf6-a76c-824617c87054
RUSSIAN CAR INDUSTRY
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produced dependent on category, motor volume and ecological class. There are subsidies for the maintenance of working places,
for R&D and for energy for all OEMs which have concluded an assembling agreement and for the OEM in the special economic
zone (SEZ) in Kaliningrad.
In connection with its WTO admission, Russia has also assumed the obligations of compensating European manufacturers of car
components for the possible decrease in imports resulting from the “industrial assembly” regime. Compensation should be
regulated through a tariff quota mechanism.11 If the volume of imported components from Europe decreases by 3% a year as
compared to the level in 2010, the European manufacturers will have the tariff quota opened and Russia will reduce its import
duties for EU car parts and components by a commensurate amount to 0%-5%.12
Apart from the legislation on industrial assembly there are a couple of other legislation acts, which have a significant impact on
the sector in Russia. The authorities are currently revising its laws to make the country more environmentally friendly. In the
automotive sphere, an important goal is the termination of the production of Euro-3 automobiles in Russia. As of 1 January
2015, Russia will be a Euro-4 country, as from January 2016 – a Euro-5 country.13
Recently, Russia has been making a lot of efforts to push innovation in the country. The goals and measures of the government
in this area are outlined in the “Russian Innovation Strategy 2020”. It includes an assessment of the current state of the
innovation system and points out some of the problems, which need to be tackled. The strategy outlines measures to be taken,
such as stronger integration of international cooperation on innovation, improving the educational system, providing incentives
for students in engineering and natural sciences, strengthening innovation activities in the business-enterprise sector, increasing
the share of competitive RDI funding, implementing Technology Platforms and developing roadmaps for key technology
sectors.14 It was decided to go for a mixed innovation strategy: In several areas like aerospace, nanotech and composites, nuclear
power and ICT Russia may claim to be among the global leaders, providing world-class innovative solutions and technologies
(leadership strategy). In other areas including the automotive sector the country will follow the path of developed Asian
countries importing and adopting the most advanced technologies available on the market (catch up strategy).15 Thus,
companies willing to do technology transfer to Russia can count on a strong support from the Russian administration.
Technical regulations still represent a major barrier for trade with Russia. Russian national standards and verification
procedures often differ from other national, regional or international standards (e.g. ISO standards), and, as a rule, foreign (EU,
U.S., etc.) certificates are not accepted in Russia although they can facilitate the national approval of the product. It is therefore
important to ensure that products are properly approved before selling to the Russian Federation. The absence of the necessary
approval can lead to delivery delays and contractual liability of the exporter. Product conformity is controlled by customs upon
import, but also within Russian territory when the product is sold or used, for instance in construction. Goods, which do not
comply with technical regulations and mandatory requirements, cannot be placed in the Russian market. Moreover, under the
Russian Civil Code a commercial seller guarantees the conformity of goods to mandatory requirements. Non-conformity is
considered a defect giving rise to warranty claims.
The Federal Agency on Technical Regulation and Metrology (Rosstandart, www.gost.ru), an agency of the Ministry of Industry
and Trade, manages the GOST R certification system. Historically GOST R standards (see also www.standard.gost.ru) are based
on GOST standards, which were originally developed by the Soviet government. Today GOST standards are the official standards
of the Euroasian Interstate Council for Standardization, Metrology and Certification of the Commonwealth of Independent
States (EASC, www.easc.org.by), headquartered in Minsk, which is recognized by ISO (International Organization for
Standardization) as a regional standards organization for the CIS. On the whole Russia has more than ten mandatory and
hundreds of voluntary certification systems (list published on www.gost.ru). There are for instance sanitary standards (SanPINs,
which are administered by Rospotrebnadzor), hygienic norms, etc. and other product requirements which must be taken into
account (e.g. Rostekhnadzor certificate for technical equipment used on hazardous industrial sites cf. Federal Law No. 116 of
July 21, 1997 “On Industrial Safety of Hazardous Industrial Sites”, Pattern Approval Certificate for measuring instruments cf.
Federal Law No. 102 of June 26, 2008 “On Ensuring Uniformity of Measurements”, etc.).
11
AEB Business Quarterly. Summer 2012, p 23, Interview with Maria Donchevskaya, Associate, CMS
European Parlament News: Trade MEPs back deals with Russia that improve trade terms for the EU,
http://www.europarl.europa.eu/news/en/pressroom/content/20120529IPR45935/html/Trade-MEPs-back-deals-with-Russia-that-improve-trade-terms-for-the-EU
13
Ernst&Young: An overview of the Russian and CIS automotive industry, March 2013, p.11
14
Finnode: Russian Innovation Strategy 2020, http://www.finnode.fi/en/japan/news/in_the_air/russian_innovation_strategy_2020.672.news
15
Finnode: Russian Innovation Strategy 2020, http://www.finnode.fi/en/india/news/in_the_air/russian_innovation_strategy_2020.671.news
12
RUSSIAN CAR INDUSTRY
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The Federal Law No. 184 of December 27, 2002 "On Technical Regulation" was meant to streamline and overhaul national
technical standards and to ensure the passage from a mandatory certification system to a modern system, based on selfdeclaration. Full implementation of the law, originally planned for 2011, would mean, in particular, that all GOST standards
(approximately 500,000, newly published on www.gost.ru) will have been replaced by, respectively integrated in published
technical regulations. Technical regulations will also clearly define the form and procedure of product verification. As a rule,
technical regulations are approved for a specific category of product or specific categories of products by federal laws. However,
the implementation of Federal Law No. 184 became more complex with the creation of the Customs Union and the necessity to
harmonize technical regulations at the supranational level.
The technical regulations approved at the national level are published on www.gost.ru. The following regulations, which are
relevant for automotive suppliers have been approved as of April 2013:
 Wheeled transport
 Exhaust emissions by cars
 Fire safety equipment
Technical regulations of the Customs Union are approved by resolution of the Eurasian Economic Commission based on drafts
prepared by a designated member country. All technical regulations and drafts are published on www.tsouz.ru. The following
technical regulations relevant to automotive suppliers have been approved at the Customs Union level (based on national,
regional and/or international standards) as of April 2013:





Machinery and equipment (in force as of February 15, 2013)
Wheeled transport (in force as of January 1, 2015)
Tractors (in force as of February 15, 2015)
Fuel (in force as of December 31, 2012)
Personal protective equipment (in force as of June 1, 2012)
In numerous cases compliance with standards or, after their enactment, technical regulations must be confirmed (product
certification). Russian law and Customs Union regulations distinguish between:
 Mandatory declaration of conformity (in the form of a certificate of conformity or a declaration of conformity)
 Voluntary declaration of conformity (including under the GOST R system)
Eventually, mandatory declaration of conformity (product certification) will be required only if and as provided for by a
technical regulation. In many cases mandatory declaration of conformity still takes the form of a certificate of conformity.
Certificates of conformity are delivered by an accredited certification body based on a test evaluation of the product. The
certificate of conformity is a pre-requisite for the import of the relevant products to Russia and must be submitted during
customs clearance. GOST R Certificates of Conformity confirm compliance with GOST R standards, TR Certificates of
conformity compliance with technical regulations, other types of certificates (e.g. telecommunication approval, RTN certificate
for hazardous industrial sites, etc.) compliance with other standards.
For some products, a declaration of conformity can be used instead of a certificate of conformity. The declaration of conformity
is issued by the manufacturer or importer and confirms that the product meets applicable Russian technical and safety
standards. A declaration of conformity can be based on the manufacturer’s own test results or tests made by an accredited
certification body or test laboratory. It must be issued according to the enacted template and registered with a certification body
accredited with Rosstandart. Ultimately declarations of conformity should replace certificates of conformity in the majority of
cases and make redundant testing a thing of the past.
Where technical regulations exist at the level of the Customs Union (CU) product conformity is confirmed by a certificate,
respectively declaration of conformity issued in the format defined by the CU. These confirmations are valid throughout the
entire CU. Alternatively, compliance can be confirmed by national certificates. Where technical regulations and standards are
uniform throughout the CU, national certification is acceptable even in the absence of technical regulations at the CU level.
Product tests conducted by certification bodies or laboratories accredited in one of the CU States are recognized throughout the
RUSSIAN CAR INDUSTRY
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CU. In the absence of technical regulations at the CU level, national technical regulations and other safety requirements
continue to apply. Compliance is then confirmed by national certificates.
Certificates of conformity are required, inter alia, for certain electrical equipment, automobiles and trucks, etc. Declarations of
conformity are sufficient, for instance, for metal-processing machines, compression-type machines, etc. The Customs Union
countries approved a common list of products the conformity of which must be confirmed (Resolutions of the Commission of the
Customs Union No. 319 of June 18, 2010 and No. 620 of April 7, 2011). Products requiring a Certificate of Conformity,
respectively a Declaration of Conformity are further listed in attachments to Resolution No. 982 of the Russian Government of
December 1, 2009. A more detailed list can be found in Information of Rosstandart from May 25, 2012 (based on Russian
Product Classification or OKP Codes) and, for import, a joint letter of Rosstandart and the Federal Customs Service from
December 27, 2011 (based on Foreign Trade Classification or TNVED Codes).
The registers of certificates and declarations of conformity can be accessed through www.gost.ru (Russian register) and
www.tsouz.ru (Customs Union register).
Russia participates through Rosstandart in the following international certification systems (among others):




International Organization for Standardization (ISO, www.iso.org)
Certification of electrical and electronic equipment (IEC or International Electrotechnical Commission, www.iec.ch)
Certificate System for Measuring Instruments (OIML or www.oiml.org)
Certification of passenger cars, trucks, buses and other transport vehicles (1958 Agreement of the United Nations
Economic Commission for Europe concerning the adoption of Uniform Technical Prescriptions for Wheeled Vehicles,
Equipment and Parts which can be fitted and/or used on Wheeled Vehicles and the Conditions for Reciprocal
Recognition of Approvals Granted on the Basis of these Prescriptions,
www.unece.org)
 Testing of handguns and ammunition (1969 Brussels Convention for the reciprocal recognition of proof marks on small
arms)
These agreements provide for the recognition of international certification in Russia and prevail over domestic rules.
Sales contracts with Russian importers should deal with the issue of certification and clearly define which party bears the related
cost and responsibility. It is generally easier to certify products locally than from abroad, and the Russian importer may be
better qualified to deal with certification issues. However, certificates obtained in the name of a local distributor are valid only
for use by such local distributor. Therefore, if the foreign manufacturer wishes to control Russian distribution channels it may be
worthwhile obtaining the certificate in the name of the foreign manufacturer. National legislation (including technical
regulations) defines who can apply for product certification and what procedures can be used for what products. Care should be
taken to select a professional provider of certification services.
Customs regulations are another main concern of companies doing business in the Russian Federation.
Following Belarus’ and Kazakhstan’s joining the Customs Union in 2010, Russia’s customs regulation is undergoing a
harmonization process. The Customs Code of the Customs Union replaced the Customs Code of the Russian Federation effective
July 2010. A new Federal Law “On Customs Regulation in the Russian Federation” from November 27, 2010 implemented the
Customs Code of the Customs Union in the Russian Federation. As of January 1, 2010 the classification system used by the
Russian Federation (“Nomenclature of Goods of Foreign Trade Activity” or TNVED/ТНВЭД) was substituted by the
“Nomenclature of Goods of Foreign Trade Activity of the Customs Union”, a system using a ten-digit standardized code and
ultimately based on the Harmonized Commodity Description and Coding System (HS) of tariff nomenclature of the World
Customs Organization. Simultaneously, the Customs Union introduced a Unified Customs Tariff (a revised version became
effective on January 1, 2012). Customs preferences (e.g. for developing countries) and non-tariff measures (import-export
licenses, quotas, etc.) have been harmonized to a considerable extent. Customs Union member states will eventually apply tariff
and non-tariff regulations only in their trade with third countries.
Goods must be declared upon import from a third country to the Customs Union in accordance with the customs regime (newly
termed “customs procedure”) selected (e.g. import for internal consumption, temporary import, etc.). Until all relevant
economic legislation (e.g. currency control regulations) within the Customs Union are harmonized, goods will continue to be
declared to customs of the country where the importer has its domicile (e.g. to Russian customs if the importer is a Russian
company). Consequently, only a Russian company can declare goods for import to Russia. Foreign companies (including their
RUSSIAN CAR INDUSTRY
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branches and representative offices) can declare goods only in a limited number of cases, but not for general trading purposes.
As a rule, the goods are declared by the importer or a customs broker (newly termed “customs representative”). When the goods
cross the border of the Customs Union by road the carrier submits to the border authorities basic documentation on the goods,
and the goods then follow under customs control (in domestic transit) to the customs terminal at the point of destination where
they are cleared through customs. Today most customs terminals are located just outside big cities, at major crossroads and not
near the borders.
The export and import of goods out of and into Russia is, as a rule, subject to the payment of customs duty. The Customs Union
uses three types of tariffs: the ad valorem tariff (fixed percentage of the value of the goods), specific tariffs (a specific amount of
money per unit) and combined tariffs. Tariffs are set for each class of goods based on the Nomenclature of Goods of Foreign
Trade Activity and are calculated based on the customs value of the goods.
Imports are further subject to VAT (normally 18%). A customs processing fee (customs clearance, transport, storage) must also
be paid. Customs duty, VAT and customs processing fee are collectively referred to as customs payments. Normally customs
payments are collected by customs. However, if the import is not subject to customs control (e.g. within the Customs Union),
VAT is levied in accordance with the applicable international treaty (normally by the tax authority of the country of the
importer) and a special VAT declaration must be filed upon the import of goods from a Customs Union member state.
The list of documents required for customs clearance can be impressive (see, in particular, Article 183 of the Customs Code of
the Customs Union) and their correct preparation requires experience.
The main documents are the following:
1. Documents on the Importer:
Prior to filing its first customs declaration, the importer must register with customs by submitting its certificate of registration,
tax certificate, articles of association, etc.
Registration is required only once.
2. Customs Declaration:
The Customs Declaration (декларация на товары or ДТ, formerly ГТД) is used to declare the goods to customs and contains
basic information on the goods (description, weight, number of units, etc.), the customs regime (procedure) selected, the
importer, consignor and consignee, the class (as per the nomenclature of goods) and the customs value of the goods, their
country of origin and the carrier. Since January 1, 2011 the same format is used in all Customs Union countries. The declaration
can be filed in paper or electronic form.
3. Declaration of Customs Value:
The Declaration of the Customs Value (ДТС) is an integral part of the customs declaration and confirms the value of the goods,
which serves as basis for the calculation of customs payments. There exist various methods to calculate the customs value
(including for the case where the exporter and importer are associated entities), and customs can request additional
documentation depending on the method used. The customs value includes the cost of transport and other costs related to the
import.
The same format has been used within the Customs Union since January 1, 2011, and an international treaty, Resolution of the
Commission of the Customs Union No. 376 of September 20, 2010, the Customs Code of the Customs Union, Federal Law “On
Customs Regulation in the Russian Federation”, etc. define how the customs value must be calculated by the importer and in
which cases the value so declared can be adjusted by customs.
4. Transport Documents:
These depend on the type of transport (road, rail, air, sea): bill of lading, FIATA bill of lading (combined transport bill of lading),
railway bill, airway bill, truck waybill (CMR).
5. Commercial Documents:
The commercial documents (contract, commercial invoice, pro forma invoice, insurance certificate, etc.) are important for the
calculation of the customs value.
RUSSIAN CAR INDUSTRY
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6. Certificate of Origin:
A certificate or declaration of origin is required to benefit from preferential customs tariffs or in other cases where the origin of
the products has significance for the calculation of customs payments or otherwise. Certificates of origin are issued by special
institutions in the country of the manufacturer.
7. Certificate/Declaration of Conformity, Import License, etc.:
Import restrictions include non-tariff restrictions (quotas, import licences), restrictions based on national interests (gold, silver,
cultural values, military goods, etc.) or international treaties (e.g. protection of rare species), special restrictions on foreign trade
(e.g. antidumping measures, embargoes), technical trade barriers (technical standards) and other safety requirements (sanitary,
phytosanitary, epidemiological, veterinary, radiation, etc.). In many cases the importer needs to submit documents confirming
that the goods are admitted for import into the territory of the Customs Union, respectively the Russian Federation (see, for
instance, Government Resolution No. 53 of February 7, 2008 concerning certificates and declarations of conformity). For
further information see below sections on “Import and Export Regulations”, “Technical Standards” and “Sanitary and
Phytosanitary Measures”.
8. Deal (Transaction) Passport:
The deal or transaction passport is a document issued by the Russian bank of the importer and required under Russian exchange
control regulations. Transaction passports are used to monitor cross-border payments.
9. Sales Contract:
Russian law requires foreign trade contracts (contracts for the cross border delivery of goods or services) to be in writing. Sales
contracts for the delivery of goods are normally governed by the United Nations Convention on Contracts for the International
Sale of Goods (Vienna Convention) if its application was not contractually excluded by the parties.
Customs law further regulates the conduct of audits by customs after customs clearance of the goods. Documents must be
retained at least three years after the goods have been cleared through customs.
Substantial information can be found on the official site of the Federal Customs Service of the Russian Federation
(www.customs.ru), which contains a quite extensive section in English.16
3. Russian market for vehicles and automotive
components
Russia, the second-largest automotive market in Europe, went through a period of high increase in car sales: 30% in 2010 and
39% in 2011 which flattened significantly to 11% growth in 2012 reaching 2.935 million units17. With this figure Russia exceeded
the pre-crisis level for the first time due to the increase in household incomes and satisfaction of deferred demand. 18 The sales of
Russian brands as a share of the total light vehicle market declined from 25% in 2011 to 21% in 2012. Another important feature
was the drop of the premium vehicles share and the shift of consumer preferences to middle price segment. 19 For 2013 experts
had different opinions on how the market will develop: Russian car sales were expected to be more or less flat according to the
Association of European Businesses (AEB). PriceWaterhouseCoopers foresaw a modest growth rate of 5%,20 Avtostat on the
16
All information on certification and customs: Swiss Business Hub Russia: Legal Provisions: 2012, http://www.s-ge.com/de/filefieldprivate/files/720/field_blog_public_files/11801
17
AEB Press Release: Russian Automotive Market is to consolidate close to its current level in 2013,
http://aebrus.ru/application/views/aebrus/files/press_releases_files/Sales_in_December_2012_Eng_final_file_releases_2013_01_15_13_05_35.pdf
18
Ernst&Young: An overview of the Russian and CIS automotive industry, March 2013, p.7
19
Ernst&Young: An overview of the Russian and CIS automotive industry, March 2013, p.12
20
Moscow Times, 23.01.2013, p. 4
RUSSIAN CAR INDUSTRY
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contrary a slight decrease.21 The first half year with a decline of about 4% showed that it will most probably go in the last
direction. Reasons for the curbed consumer growth are the increase in credit interest rates and general perception of economic
uncertainty. Actually, a shift in demand towards budget class models is noted, as well as a gradual recovery of demand for
premium class cars22.
Concerning midterm forecasts, Russia as an emerging market with a low vehicle ownership per capita of 280 cars per 1000
people is still expected to accelerate its demand for new cars until a saturation point of around 400 automobiles per 1000
residents is reached in approximately 2020-2022.23 Other engines of continued growth, which remain in place, include a
relatively small and aging car park, improving consumer income, growing number of car lending programs provided by banks
jointly with OEMs, development of infrastructure and highways, and an unabated appetite to own a respectable and reliable car
as a symbol of social status and a sign of independence and personal mobility in a vast country. 24 With these conditions Russia
is said to remain one of the most attractive markets in Europe for cars with a 5% annual forecast growth for light vehicles from
2013-16.25
As the Russian car industry has a very low export rate and the foreign automotive corporations are producing in Russia almost
exclusively for the local market, the sector depends highly on the country’s overall economic situation and the consumer
confidence of the Russian people, which in their turn are closely linked to the international prices for commodities. Joerg
Schreiber, President and Managing Director, Mazda Motor Rus LLC and chairman of the AEB Automobile Manufacturers
committee explained that “everything depends on the domestic market environment, and Russia is surrounded by regions where
economic development is quite difficult”26.
21
Khimija Ukrainy, SNG, mira: Russia: V international conference “Polymers in the automotive industry”, http://ukrchem.dp.ua/2013/06/23/rossiya-vmezhdunarodnaya-konferenciya-polimery-v-avtomobilestroenii.html
22
Ernst&Young: An overview of the Russian and CIS automotive industry, February 2012, p.6
23
AEB Business Quarterly. Summer 2012, p 12, Interview with Alexey L. Rakhmanov, Deputy Minister for Industry and Trade
24
AEB Business Quarterly. Summer 2012, p 6, Interview with Joerg. M. Schreiber, President and Managing Director, Mazda Motor Rus LLC
25
Ernst&Young: An overview of the Russian and CIS automotive industry, March 2013, p.2
26
Moscow Times, 15.01.2013, p. 4
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Table 2: New Car and LCV Sales in Russia by Groups in 2011/2012
Source: Data submitted by the AEB Automobile Manufacturers Committee; retail sales of imported and locally produced vehicles, December 2012
RUSSIAN CAR INDUSTRY
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For the commercial vehicle segment, the negative consequences of Russia’s admission to the WTO (which leads to lower import
duties) could be especially notable, as second-hand sales are very popular in this sector in Russia. In 2012 alone, the growth rate
in the sales of new commercial vehicles has dropped significantly to 5% against 56% 2011. Experts assess the average growth rate
for sales of new commercial vehicles in the period 2013-2016 to level off at a rate of approximately 4%.
The bus segment was growing in line with the other automobile subsectors with 14% in 2012. The share of domestic brands is
gaining ground reaching 63%. Suburban and city buses prevail in the bus production structure, accounting for 57% and 42%,
respectively, of the total bus output.27
The automotive suppliers sector was hit even more than the OEMs during the crisis 2008/2009 in Russia. The light vehicle
production decrease dealt a blow to component demand and while the major Russian OEMs managed with the government’s
support to restructure their debts, most independent suppliers could not benefit from state support. With much lower demand
for OEMs, a number of them had to declare bankruptcy.28 In 2011 the sales of car components recovered with a peak growth of
33%. in 2012 the growth rate was still 8%. Since many of the OEMs did not open new production capacities (as planed for 2013),
many car component producers received order volumes much below their expectations.
In 2012 the market for components reached sales worth a record 41.8 billion USD, 49% of which were sold to OEMs and 51% as
spare parts for maintenance and repair. These two sectors have developed quite differently during the crisis. While OEMs were
hit heavily by the crisis in 2008 and purchased significantly less components in 2009 and 2010, the spare parts market has been
rather stable. Despite this discrepancy, both subsectors showed an impressive growth rate in 2011 (15% for spare parts, 49% for
components for OEMs).
According to experts, the potential of the market remains high due to the need of OEMs in high quality components and the
support of the Russian Government for joint production of Russian and foreign partners. Furthermore, a shift in import towards
products of countries with a well-developed automotive industry is expected.
Table 3: Automotive Component Market
Source: Ernst&Young: An overview of the Russian and CIS automotive industry, February 2012, based on Autostat research agency, Ernst & Young estimates
27
28
Ernst&Young: An overview of the Russian and CIS automotive industry, March 2013, p.21-22.
AEB Business Quarterly, Autumn 2010, p 24, Interview with Ivan Bonchev, then Automotive Head, Ernst&Young
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4. Automotive production in Russia
Russia has inherited a considerable number of automotive plants from the Soviet planned economy, which are capable to
produce a large number of cars per year. However, due to their outdated technologies and design, it is very difficult for these
factories to compete with the foreign brands. During the last few years the traditional Russian brands have been looking for
strategic partners among the foreign car manufacturers. Today, practically all Russian companies are working in partnership
with the industry’s international automobile corporations. You could safely say that not a single so called “stand-alone” Russian
enterprise continues to operate without a foreign auto making partner in one form or another.29 The AVTOVAZ company for
instance is cooperating with Renault and even models sold under the Lada brand resemble nowadays Renault cars. The Russian
brands account for a market share of about 40% in terms of units, but in terms of sales volume their share is much less with
about 12% or 8 billion USD.
The big international automotive manufacturers are engaging themselves in Russia not only in partnership with Russian
companies, but also with green field investments. Virtually every foreign car manufacturer set up a plant in Russia during the
past few years or has concluded assembling contracts with Russian producers.
Table 4: Foreign Car Factories and Joint Ventures
Foreign car factories
Volkswagen
Peugeot-Citroen/Mitsubishi
Volvo Trucks
Honda
GM
Hyundai
MAN
Nissan
Scania
Toyota
Assembling of foreign models by Russian companies
AVTOVAZ – Renault
GM-GAZ
GM-VAZ
GM-Avtotor
KIA-Avtotor
Ford-Sollers
BMW-Avtotor
Hyundai-TAGAZ
Daimler-KAMAZ
Toyota/Mitsui&Co/Sollers
Mazda-Sollers
In 2013 the production capacity of the car factories in Russia are estimated to reach 3.2. million cars a year.30
The foreign manufacturers have to localize the production up to 60% in eight years (resp. 30% in 7 or 8 years for agreements
under the previous redaction of the decree), according to their agreement with the Russian authorities. However, most of the
foreign manufacturers have been falling behind their localization plans. According to Avtostat agency for many foreign
producers the share of locally produced components accounts currently only for about 10-15%.
The foreign car manufacturers are concentrated in several areas of Russia known for the best infrastructure for this production.
Naturally the component producers also prefer to set up plants in these regions. Traditionally, the automotive cluster was
situated in the Volga district with Tatarstan, Samara, Ulyanovsk and Nizhny Novgorod oblast (KAMAZ, AVTOVAZ, GAZ, UAZ,
Sollers, Ford Sollers, General Motors, assemblage of Volkswagen, Chevrolet and Mercedes-Benz Sprinter brands at GAZ).
During the last years Kaluga managed to establish a new automotive cluster not far from the existing factories still operating in
Moscow (Renault, Volkswagen, Peugeot-Citroen/Mitsubishi, Volvo Trucks). The third cluster is located in the Northwest of the
country in St. Petersburg, the Leningrad and Kaliningrad oblasts (BMW, Chery, Hyundai Motor/Kia Motors, Ford Sollers,
General Motors, Toyota, Nissan).31
29
AEB Business Quarterly. Summer 2012, p 10, Interview with Alexey L. Rakhmanov, Deputy Minister for Industry and Trade
Vedomosti: Avtoevoluciya, October 2013, p.4.
31
Vedomosti: Avtoevoluciya, February 2012, p. 7.
30
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Automotive Clusters
Source: EAC, Market Opportunities for the European Automotive Industry in Russia, Mai 2013, http://eac-consulting.de/uploads/media/Automotive_Studie_Russland_2013.pdf, p. 6
The import of new and used cars significantly decreased during the past 10 years. Today about two thirds of the vehicles sold in
Russia are produced ”in-house”. As for the overall production of light vehicles, experts estimate that it grew by 13% in 2012, a
rather moderate growth in comparison to the 43% registered in 2011, caused by the creation of new production capacities and
the higher utilization of existing ones. With the absolute figure of 1.7 million cars produced in the country in 2012 Russia beat
for the first time an old record dating back to the Soviet times.
RUSSIAN CAR INDUSTRY
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Table 5: Production Volume LV 2012
Source: Volume: Estimation of the information agency Avtostat. Localization: Open sources. Figures differ largely among available sources; we have selected an average value in order to give
Production volume of light vehicles in Russia 2012
Company
Avtoframos (Renault)
Avtotor (BMW, KIA, GM)
Avtovaz
Ford Sollers (Alabuga)
GAZ (N. Novgorod)
GM
GM/VAZ
Hyundai Motor
Izh-Avto
Nissan
Peugeot-Citroen/Mitsubishi
Sollers
TAGAZ
Toyota/Mitsui&Co/Sollers
Volkswagen (Kaluga)
Others
Volume
160 000
262 000
540 000
119 000
8 000
85 000
63 000
215 000
50 000
48 000
51 000
40 000
9 000
30 000
160 000
20 000
Localization
56%
Assembly
Local Brands
60%
Local Brands
30%
n/a
45%
Local Brands
17%
34%
Local Brands
Local Brands
15%
30%
n/a
a general idea.
According to industry experts during the next few years the production of light vehicles will further increase mainly due to an
increase in the output of foreign brands.
Table 6: Forecast LV Production till 2015
Source: Ernst & Young: An overview of the Russian and CIS automotive industry, February 2012, p.10, based on LMC Automotive
Concrete projects of several automotive OEMs were announced and will further increase the production capacity in Russia.
RUSSIAN CAR INDUSTRY
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Table 7: LV Production Capacity
Planned production capacity of light vehicle manufacturers in Russia (per year, including existing ones)
Company
Avtotor
Mazda (Joint Venture with Sollers)
Toyota (Joint Venture with Sollers)
Ford Sollers
Honda
Volkswagen
Peugeot-Citroen/Mitsubishi
Capacity
500 000
50 000
Later 100 000
25 000
690 000
40 000
360 000
125 000
Source: Forum Avtoevoluciya, supplement of the “Vedomosti” newspaper, 13.12.2012, p. 5-7
The Russian authorities intend also to bring R&D in the automotive sector to the country. However, innovation is not always
the merit of foreign companies. In the automotive sector one could observe during the last years also the evolution of a genuine
Russian innovative project, the Yo-Mobil. This is a hybrid car, which is developed by Russian engineers in close cooperation
with the automotive supplier Magna, and is scheduled for serial production, beginning 2014. The drive of the Yo-Mobil consists
of a hybrid design that operates with two small electric motors, a bank of capacitors and a small engine that can use either
gasoline or natural gas. The engine works almost continuously, generating electricity that powers the motors directly or charges
the capacitors that discharge energy for start-and-stop city driving. Noteworthy and perhaps suspicious, the internal
combustion engine is a “rotary vane” type. Rather than moving up and down as in a conventional engine, the pistons move in a
circular arc. The advantage of this design is that there are fewer moving parts resulting in a smoother operation. According to
the engineers, the Yo-Mobil will need about 3.5 liters of fuel per 100 km, which is a fuel efficiency surpassing that of the Toyota
Prius. The maximum speed will top at 120 km/h and the range at approximately 700 km, when both its natural gas and gasoline
tanks are full. These parameters can be achieved due to the car’s light weight and its innovative engine. However, the company
supported by the Russian oligarch Prohorov has encountered several problems in the realization of its project and the launch of
the production was postponed several times.
The high potential for import substitution in the car production in the Russian Federation remains one of the main features of
the Russian automotive component market. The volume of the primary market for auto components in 2012 accounted for USD
20.57 billion according to estimates of the specialized information agencies Avtostat and ASM-Holding. For 2016 experts
forecast a market volume of USD 6-12 billion. 32
New players are expected to enter the market since many automotive component production segments witness a relatively low
level of competition. For many years, there was no independent supplier industry in Russia, because all the traditional
manufacturers produced the automotive parts themselves.33 The Russian Government is supposed to provide comprehensive
support to joint productions of Russian and foreign partners to attract new technologies to the country.34
In Russia, there are three main categories of original equipment suppliers:
1. Companies engaged in the production of components for existing and outdated Russian car models, primarily
affiliated with domestic OEMs and independent companies. They usually have a worn or obsolete technological base,
lack new technologies, and often professional management. They are also typically short on investment resources and
lack engineering skills to master new types of products and develop their customer base. Their products are of poor
quality, which prevents them from supplying components to foreign OEMs.
2. Joint ventures created by Russian and foreign manufacturers employ relatively modern production technologies and
equipment supplied by international partners. They are usually engaged in the production of technically simple
components with low added value (bumpers, harnesses, lights, etc.) designed by foreign partners, or on licensed
assembly of sophisticated components with low level on subcomponent localization (transmission gears, engines, etc.).
They have practically no intellectual property rights, in-house engineering and R&D centers and generally specialize in
a small range of products of one or two component categories.
32
Vedomosti: Avtoevoluciya, October 2013, p.4.
AEB Business Quarterly, Autumn 2010, p 6, Interview with Martin Jahn, Vice President, Sales and Marketing, Volkswagen Group Rus
34
Ernst&Young: An overview of the Russian and CIS automotive industry, February 2012, p.16
33
RUSSIAN CAR INDUSTRY
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3.
Foreign original equipment suppliers are relatively new to the Russian market and still have a low level of localization
of both subcomponents and raw materials. Usually, they have insignificant production scale determined by
overspecialization and rather limited customer base. Foreign original equipment suppliers currently focus on
technically simple components with low added value (eg. seats, ignition plugs, exhaust systems, etc). Global OEMs are
interested in seeing their traditional Tier-1 and Tier-2 partners follow them as they enter the Russian market.35
Due to the fact that the genuine Russian automotive industry cannot reach the necessary quality standards, several
international automotive suppliers have appeared on the market recently. Localization in the Russian Federation will be one of
the main concerns for all international car manufacturers in the coming years. Some foreign automotive suppliers have concrete
needs of pre-suppliers in the area of plastics, injections/blow moldings, metal stamping and metal tube bending and welding.
Components with good potential for local sourcing are:
 Metal casting, forging and stamping
 Seats and seat systems
 Interior and exterior plastics (panels, bumpers, etc.)
 Batteries
 Tires and wheels
 Automotive glass and mirrors
 Painting and coating materials
 Wiring harnesses36
A major challenge remains the following production groups:
 Power train (engine, transmission, drive shafts, differentials, etc.)
 Chassis, driving axles, suspensions, etc.
 Electronics
 Thermal systems (Heating Ventilation Air Conditioning, hoses).37
Around 190 declarations of foreign suppliers planning to establish production facilities in Russia were signed of which almost
70 were converted into binding investment agreements till mid 2013.38 Many of the global automotive suppliers did not choose
to invest in greenfield projects in Russia, but looked for partners among the local players. This had the advantage that they
could profit from existing workforce and infrastructure and in some cases even open doors to Russian OEMs and aftermarket
access. On the other hand, the Russian partners benefited from the technical know-how, improved quality and process
management systems of the foreign companies.
However, while the benefits for both sides are obvious, there are also some hidden threats which should not be underestimated
– those include difference in business cultures, overly optimistic expectations from both sides, etc. Unfortunately, quite a
number of joint ventures had therefore to be stopped.
35
AEB Business Quarterly, Autumn 2010, p 24, Interview with Ivan Bonchev, then Automotive Head, Ernst&Young
AEB Business Quarterly. Summer 2012, p 21, Interview with Ivan Bonchev, Investment Director, SI Capital Partners
AEB Business Quarterly. Summer 2012, p 21, Interview with Ivan Bonchev, Investment Director, SI Capital Partners
38
EAC: Market Opportunities for the European Automotive Industry in Russia, Mai 2013, http://eacconsulting.de/uploads/media/Automotive_Studie_Russland_2013.pdf, p. 9.
36
37
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LV Production Capacity
Source: Russia: Russian Automotive Market Research, Russia - The race to localize, Tatyana Arabadji, 18.11.2012, http://www.russiasupplychain.com/russian-challenge-componentlocalisation/
Table 7: Component Producers
Company name
Antolin
Asahi Glass
Autoliv
BASF
Benteler Automobiltechnik
Continental
Continental
Cummins
Delphi
DuPont
Eberspächer
Faurecia
Federal Mogul
Grupo Antolin
Headquarter
Spain
Japan
Sweden
Germany
Germany
Germany
Germany
USA
USA
USA
Germany
France
USA
Spain
Hella
Germany
RUSSIAN CAR INDUSTRY
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Components produced in Russia
glass
security belts
nitrocellulose paint, catalysts, polyurethane
elements of suspension
engine control systems
plants for tires, plugs, fuel systems
joint venture with Kamaz; assembly of engines
electrical elements, plastic details
nitrocellulose paint
exhaust systems
plants for elements of the interior and exhaust systems
piston blocks
elements of the interior, lightening of the passenger
compartment, window regulators
lightening systems
Hyundai Mobis
Inergy Automotive Systems
Johnson Controls
Lear
Leoni
Magna International
South Korea
France
USA
USA
Germany
Canada
Magneti Marelli
Michelin
PPG Industries
Robert Bosch
Schaeffler Group
T.RAD
Takata
Tenneco
TI Automotive
Toyota Boshoku
Valeo
Visteon
ZF Friedrichshafen
Italy
France
USA
Germany
Germany
Japan
Japan
USA
Great Britain
Japan
France
USA
Germany
plastic details for the interior and exterior
fuel tanks
seats, seat covers
seats, wiring harness
wiring harness
elements of the interior and exterior, details of the body,
passive security systems
lightening systems
tires
coatings
plugs, wiring harness, starters, generators, fuel pumps
plant for steering wheels, security belts, airbags
exhaust systems
fuel and brake systems
seats
wiring harness, climate control systems
elements of the interior, audio systems, electronics
gear boxes
International car suppliers become more and more interested in Russia and there are several of them, which have already
announced their plans concerning assembly plants in Russia:
Denso (Japan)
TRW Automotive (USA)
Cummins (USA)
Brose Fahrzeugteile (Germany)
CIE Automotive (Spain)
Webasto (Germany)
Modine Manufacturing (USA)
Dura Automotive Systems (USA)
Edscha (Germany)
Bulten (Sweden)
5. Swiss automotive suppliers in the Russian market
In general, Swiss automotive suppliers are more famous for manufacturing equipment rather than components. For decades the
Swiss machine-building companies have been quite prosperous in the Russian market. In 2012 they accounted for about 24% of
the Swiss exports to Russia in comparison to 20% in 2011. Of course, these are not only machines for the automotive industry.
But the automotive industry in Russia is one of the main client segments for the Swiss machine builders.
The list of Swiss machine builders active in the automotive industry in Russia includes:
Agathon AG
Amsonic AG
Baltec AG
Bystronics Laser AG
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Eckold AG
Ernst Grob AG
Esco AG
EWAG AG
Fehlmann AG
Feintool Technologie AG
GF Agie Charmilles
Haeusler AG
Hatebur
LNS SA
Mägerle AG Maschinenfabrik
Mikron SA
Monnier + Zahner AG
Muller Machines SA
OC Oerlikon Balzers AG
Pemamo SA
Pfiffner AG
Reiden AG
Reishauer AG
Schaublin SA
Schnyder SA
Stähli Läpp Technik AG
Star Micronics AG
Starrag AG
Strausak AG
Studer AG
System 3R
Tesa SA
Urma AG
As for the Swiss automotive components, probably most of them are imported into Russia within the ready kits that are brought
in by the international car manufacturers in order to be assembled for saving customs duties. Nevertheless there are some Swiss
components producers, which managed to make business directly in Russia. Two projects gained some public attention
recently:
The KAMAZ Company, a leading Russian manufacturer of powerful trucks, has developed a new fire engine. The truck has been
developed in cooperation with the HIROMAX Swiss Company. The fire engine has been made exclusively of stainless steel,
aluminum, and plastics, in accordance with a special non-dying technology. Thanks to the innovative HIROMAX system, it is
possible to put out household fires without flooding neighbors below. KAMAZ plans to turn out at least 200 units per year.
AVTOVAZ has started the small-scale serial production of its first electric automobile model: El Lada with electric engines,
inverters and DC/DC blocks of the Swiss company: MES SA and charging equipment of the Swiss company Brusa. The first
party production, which consists of 100 vehicles, will be sent to Stavropol Region to be used as taxis. An agreement proposing
the sale of 100 electric cars to the regional administration had been signed between OAO AVTOVAZ and the government of
Stavropol Region on 30.08.2012. The Russian manufacturer has delivered the first of these automobiles to the regional
administration. El Ladas have a maximum velocity of 130 km/h and can travel a distance of 150 km, once charged for 8 hours.
For a long time there has been only one Swiss automotive supplier manufacturing in Russia. EFTEC, worldwide supplier to the
automotive industry and member of the EMS Group, operates two production facilities in Russia, one in Nizhny Novgorod and
one in Elabuga (Tatarstan). The company develops, produces and markets materials and application technology in the
specialized fields of bonding, coating, sealing and damping. With these applications EFTEC holds leading market positions
throughout the world. In 2012 D PLAST-EFTEC generated net sales of 82 million CHF with a workforce of 211 employees.
Till recently, the markets of Central and Eastern Europe have been serviced through a regional joint venture with the Czech
company D-Plast. The EMS Group has now taken over the other 50% share in this joint venture to hold sole control of the
EFTEC business in Central and Eastern Europe. With this take-over, EMS intends to further increase business in the growth
markets of Central and Eastern Europe and to strengthen its leading market position as global automotive supplier. The
purchasing price amounts to CHF 60 million.
In the beginning of this year another big Swiss automotive supplier, Autoneum, announced that it would start producing in
RUSSIAN CAR INDUSTRY
23
Ryazan close to Moscow acoustic and thermal management components as of the end of 2013. The new plant is conveniently
located with good connections to all automotive clusters. Workforce figures at the new plant should reach about 200 by 2017.
Just very recently Liebherr announced that its engine building unit in Bulle (Switzerland) will establish a joint venture with
KAMAZ in Tatarstan.
6. Customers
Swiss automotive suppliers can target several customer groups in Russia:
International OEMs
National OEMs
Joint Venture OEM
International OES
National OES
Joint Venture OES
Distributers for the spare part market
International OEMs and OESs may probably stick to their proven suppliers, which they know from other markets. On the
other hand, sometimes exactly the international OEMs and OESs are putting pressure on their suppliers to localize also in
Russia. If the supplier does not produce in Russia he will not only loose a business opportunity in this country but maybe even
loose its home market as the OEM or OES will choose a supplier which is ready to deliver local content in every important
market.
International OEMs and OESs in Russia generally have well-organized supply departments which identify and contact potential
customers. As a second step they negotiate on supply terms. All of them underline that their requirements towards suppliers do
not differ in Russia from anywhere else in the world and the products here are usually also tested by experts from their home
countries. The supplier approval process usually takes from 2 to 5 years. The company Mercedes-Benz Trucks Vostok for
instance started its search for local suppliers in 2011 and so far has only two confirmed partners with two more most likely
showing up soon. Requirements to the suppliers include test and control processes right at the manufacturing facility.
Anyway, if a supplier does not manufacture in Russia he will have to deal with the international supply department in the home
country as the Russian office is only in charge of manufacturers producing in Russia.
If you do not have established relations with OEMs and OESs in the home market, a more promising strategy could be to tackle
joint venture or local car and components producers, which are currently looking actively for foreign components and
equipment in order to increase the quality of their vehicles or automotive components. In this context many of them will have to
invest considerable sums in order to modernize their production facilities.
Local automotive and automotive components producers are sometimes not easy business partners to deal with: Their websites
may contain only scarce information in English. Key decision makers are hard to identify and even harder to reach. Assistants
on the phone do not speak any foreign languages and often just hang up in frustration or lack of motivation. Even when an
initial contact has been established, they don’t respond to mails for weeks, but when they do, they ask for an immediate decision
within one or two days. The list of similar shortcomings could be continued. Briefly, in many cases it is impossible to
communicate with Russian clients if you do not have a profound Russian background – in language and in culture.
In joint ventures the western partners usually bring in certain knowledge of state of the art technologies. On the other hand the
RUSSIAN CAR INDUSTRY
24
production facilities provided by the Russian partners are in an obsolete condition. As they aim to supply the international
OEMs and OESs they have to meet their minimal quality standards, which bring a need to invest substantially in the
modernization of the equipment and components. Therefore, as a rule, they are interested in offers for new machines and
modernization of the existing equipment, as well as the supply of high quality components. As shown in practice, unfortunately,
the western business administration is usually not the first priority to be implemented, which means that in dealing with joint
ventures many challenges of doing business with local companies, described above may be applicable as well.
If the Russian market is very important for you, hiring a Russian employee who deals with his or her compatriots can be a good
solution. At first, when you are still checking the potential of the market, the cooperation with an external specialist
(experienced in doing business in Russia) can be helpful. He can do all the correspondence, the follow-up by phone and
accompany you to important business meetings in order to translate. OEMs and OESs usually negotiate with component
suppliers directly due to complicated huge volumes and the need for tailor-made products.
For equipment it is quite a common scheme that there is a Russian importer/distributor in-between which represents the
Swiss machine builder in the Russian market. The Russian importer/distributer not only markets the products in Russia (and
often in the whole CIS) but also takes care of the import, customs, logistics, certification and service.
The spare parts market is prospective for component producers with a good price/performance ratio. Russian consumers are
very cost-oriented and many of them try to save when buying spare parts. Although the international OEMs are pushing to do
service and repairs only with official dealers there are still many private small repair shops.
Usually, the spare parts market is served by importers/distributors and regional wholesalers. As they have experience dealing
with foreign partners, it is often easier to contact them than to contact potential clients. However, you should also be armed
with patience and the capability to adapt to local business culture.
Russia is a country where good business partners and contacts are extremely important. Local business partners can be very
helpful in dealing with authorities or solving other problems. Good business relations often take time to develop, so the initial
stages of a business operation, when a network is yet to be built up, tends to be the hardest.
One effective method of acquiring new contacts is the participation in trade fairs. Both Moscow and St. Petersburg have modern
international exhibition sites where trade shows are held throughout the year. The most important venues are Krokus Expo and
Expozentr in Moscow, and Lenexpo, Restec and Farexpo in St. Petersburg. The events are versatile, ranging from professional
industry-specific fairs to congresses or contests. In a first attempt rather than to present your products in a booth we
recommend to just visit the fair. Please note that a fair visit should be prepared carefully, e.g. potential interesting partners
should be contacted in advance.
Consulting agencies represent another channel for finding interesting business partners. A serious consultant will bring in
market knowledge and can start a targeted research.
The personal contact with potential partners is crucial and we always recommend visiting the business partners in person. You
should not apply Swiss standards to the offices of Russian companies, but if you compare just a few you can easily understand
which of them are working efficiently and which do not.
RUSSIAN CAR INDUSTRY
25
7. Market Entry Strategies
There are several schemes on dealing with the Russian market:
1.
2.
3.
4.
5.
6.
7.
Working from Switzerland directly with potential clients
Working with an agent
Cooperating with an importer/distributor
Hire own employee in an external organization
Establish a representation in Russia
Establish a subsidiary in Russia
Establish a manufacturing facility in Russia
As described above in the first case it is very important that contacts with the potential clients are made by a specialist,
experienced in doing business in Russia. This person can be engaged internally or externally. To serve clients from Switzerland
may be an option if you have only a very small number of big clients who are experienced in taking over the whole logistic
process, including customs.
To work with agents is not a common practice for foreign companies in Russia. First of all because the foreign company with
an agent still have to solve the challenge on how to import the goods. Secondly, it is very difficult to check the reliability of
agents and last but not least for high professionals this seems not to be the best working option nowadays. They will rather work
for a renowned company or just establish their own organization. However, importers/ distributors sometimes work with
agents to cover the whole territory of Russia.
Cooperation with an importer/distributor is a very widespread scheme for foreign companies entering the Russian market.
Needless to say, embarking upon co-operation with an onsite distributor is a major decision having significant strategic and
financial impact. When choosing a distributor it is of utmost importance to make sure that the company is both personally and
economically involved in the industry and the region where you intend to sell your products or services. An ideal distributor will
have many years of market experience and have developed reliable business relations with the clientele that you are targeting.
Distributors play a key role in the mediation process. They negotiate with retail outlets, the local authorities as well as
individuals, depending on products and industries. You can expect a distributor to charge a margin of 20% and more.
Some foreign companies work with an exclusive distributor, others have several distributors for different regions of Russia.
Often this is more an historical fact than a conscious choice. Of course it is easier to deal with one distributor than with a couple
of them. On the other hand if you have only one distributor you have to be sure that this is really the right one. Usually, Russian
distributors insist on the exclusive right to represent a certain company in the Russian market if they have to invest a lot to
promote its products.
It is crucial to consider your partner’s proficiency in the relevant industry. Most distributors specialize in an industry or range of
products. The better the match between your product and the distributor’s specialization, the better your chances of a successful
collaboration. Finally, it always pays to have a clear concept of what you want to achieve in the negotiation process. The clearer
you are about your own goals, the better you will be able to assess your potential partners.
Be aware that your additional support in promoting your products locally is usually required. As a matter of fact, due to high
demand, successful distributors have been able to choose who they want to collaborate with. Therefore, it has become
customary that foreign suppliers offer training to sales and marketing specialists and prepare marketing materials and product
samples. Especially in the long run, support of this kind often becomes a critical success factor.
As distributors usually sell a wide range of products from different manufacturers, it can be helpful to finance a special brand
manager within this company. With this you are sure that you get all useful information on clients and business developments
and you have the possibility to directly supervise this person.
RUSSIAN CAR INDUSTRY
26
If no reliable distributor is available in a certain sector or if products of a Swiss manufacturer have to be marketed to clients in
several different sectors that cannot be covered by one single distributor sometimes the manufacturer opts for hiring an
employee within an external organization. According to the Russian labor law it is not favorable to hire a local person
from abroad, therefore there are specialized companies established under Russian law, which hire persons on behalf of foreign
companies. Usually, they can offer additional services like import, logistics etc. Some of them are originally staff research
companies, others – consulting companies. As always, it is important to compare offers of several providers.
Many foreign businesses first open a representative office. As a rule, representative offices have no commercial activity (i.e.
do not manufacture products or render services) and are purely cost centers. They are therefore typically not permanent
establishments (the definition of the permanent establishment of a Swiss company in Russia can be found in the double tax
treaty between Switzerland and Russia) and do not pay corporate profit tax, asset tax and VAT. At the same time they allow the
foreign company to rent office space, to open bank accounts and to hire employees. The representative office is not a separate
corporate identity, which means that the foreign company opening a representative office is fully responsible for its debts and
liabilities.
Local subsidiaries are most commonly incorporated in the form of limited liability companies or closed joint stock
companies. The minimal share capital of limited liability and closed joint stock companies is 10,000 rubles. These legal forms
allow the company to do business like any other Russian company. It can buy, sell, import, etc.
The localization of the production is a big step for every company and in Russia with its omnipresent bureaucracy, it is
especially complex.
For the production foreign OES can choose different strategies:





Greenfield investment: e.g. Johnson Controls, Tenneco, Lear, TI Automotive, Hyundai supplier park
Acquisition of Russian OES (Brownfield investment): e.g. Magna – Technoplast
Joint Venture between Russian & foreign OES: e.g. MW – Evrodisk
Joint Venture between 2 foreign OES in order to share risks: e.g. Faurecia – AD Plastik; Magna Cosma – Shin Young
Group
Joint-Venture between foreign OES & Russian tier-3 supplier: e.g. Gestamp - Severstal
It is important to note that the approval procedure for investment projects is different in every region of Russia. During the past
few years the Russian government has made efforts to simplify the regulations. Reforms to improve the conditions for
entrepreneurs in the construction sectors started in 2008. The roadmap for 2012 foresaw shortening of the delivery time for
construction permits and a reduction of the involved state bodies.
Even the costs for small-scale investment projects from foreign companies easily mount up to EUR 10-20 million due to high
expenses for good quality buildings and complicated bureaucratic procedures.
Important factors for the successful set up of a manufacturing plant are:

Transparent costs for land development and especially the access to electricity

Affordability of the plot of land intended for building

Developed municipal infrastructure

Qualified working force

Good transport connections

Support by the local administration
A project can be declared a “preferential investment project” by the regional administration in order to get additional support.
But as this is predicated on certain requirements and a lot of paperwork, it has to be checked on a case-by-case basis to confirm
whether this is really an advantage. Even if an investor decides not to go for a preferential investment project, it is often helpful
to sign a memorandum of understanding with the regional administration in order to ascertain the backing of the officials,
concerning issues like organizational support, purchase of the plot for building, lowering land development costs, fastening
approval processes, tax holidays and financing, development of municipal infrastructure. Furthermore, the regions can offer
support in form of state guarantees, subventions, development of land, etc..
RUSSIAN CAR INDUSTRY
27
Regional administrations are generally prepared to grant tax incentives, which can include:

Capital tax: tax holiday or reduced taxes for movables and immovables, used for the realization of the investment
project.

Transport tax: tax holiday or reduced taxes for means of transport, purchased for the realization of a preferential
investment project.

Real estate tax: tax holiday or reduced taxes for the land plot purchased for the realization of the investment project
One of the decisions an investor has to make is the geographical location of the future manufacturing plant. As many
regulations are set on a regional level, it is important to choose a region with favorable conditions and where one can count on
the support of the regional administration.
According to the experience of “Beiten Burkhardt” law firm’s experts, the following cities are especially popular for
manufacturing projects of foreign companies (in alphabetical order):
Alabuga (Special Economic Zone in Tatarstan)
Astrakhan
Belgorod
Bryansk
Kaliningrad
Kaluga
Kazan
Kemerovo
Krasnodar
Krasnoyarsk
Kurgan
Moscow
Naberezhnye Chelny
Nizhny Novgorod
Novosibirsk
Omsk
Samara
St. Petersburg
Chelyabinsk
Togliatti (Spezial Economic Zone in the Samara region)
Tomsk
Ufa
Vologda
Yekaterinburg
Special economic zones and industrial parks exist in several regions. Residents of special economic zones can benefit from
simplified administrational procedures, easy purchase of land plots, autonomous infrastructure, flexible construction rules and
high quality services. The developers and operators of industrial parks can be either official or private entities. The Swiss
company DEGA Group deals with real estate development as well as turnkey construction of industrial facilities and has been
active in the Russian Federation since 2003. In 2006, it established the well-functioning Noginsk Industrial Park in the Moscow
region. Other projects are in a stage of planning.
SEZs and industrial parks with automotive focus
RUSSIAN CAR INDUSTRY
28
Source: EAC, Market Opportunities for the European Automotive Industry in Russia, Mai 2013, http://eac-consulting.de/uploads/media/Automotive_Studie_Russland_2013.pdf, p. 16
Managing supply chains in Russia is considerably more challenging than in other markets. Potential risks, such as difficulties
with customs and tax authorities, long run routes, incompatibility between truck sizes, poor road infrastructure and port
congestion combined with just-in-time requirements demand sophisticated transportation strategies. To optimize logistics
costs and operate in a lean production environment, enterprises engaged in automotive manufacturing in Russia are regionally
concentrated in clusters.39
The import of construction materials and equipment for the future plant is a separate issue, which should be given the
necessary attention, as well. On the one hand, it can cause a lot of troubles due to the complicated bureaucratic and customs
procedures. On the other hand, one has the possibility to save a considerable sum on taxes and fees if one knows how to declare
the goods to bypass the additional tax burden. Since the import of investment goods is not quite the same as the import of
products for sale, a consultation by an expert can be useful even if customs and logistics departments already exist within the
company.
8. The Central Cluster
The central cluster is located around the two very different centers Kaluga and Moscow. It is one cluster only because of
geographical closeness. But in fact the conditions in Moscow, the Moscow oblast and in Kaluga oblast diverge quite heavily.
39
EAC,
Market
Opportunities
for
the
European
Automotive
consulting.de/uploads/media/Automotive_Studie_Russland_2013.pdf, p. 14.
RUSSIAN CAR INDUSTRY
29
Industry
in
Russia,
Mai
2013,
http://eac-
The automotive industry in Kaluga is very young. The governor Anatoly Artamonov heard in 2005 that Volkswagen company
was about to start production in Russia. He wrote them a letter introducing his oblast and promoting it as the best location for
the future plant. Apparently, he was very convincing and due to the excellent conditions he proposed, Volkswagen Group
decided to build its factory near Kaluga. Governor Artamonov and his team did not relax on this success but took it as the
perfect base to attract other car producers and their suppliers. Today the oblast is home for the three car producers
Volkswagen, Volvo, Peugeot/Citroen/Mitsubishi and about 25 suppliers and still ranks among the best locations for foreign
automotive suppliers, when it comes to localizing. The oblast benefits today from a solid industrial base with a pool of trained
workers, a recently built infrastructure and the relative closeness to Moscow and all automotive OEMs in the country.
Moscow on the other hand is a traditional site for automotive production, but the development in recent years has driven this
sector out of the city. Nevertheless the French auto concern Renault decided to invest EUR 480 million in the plant
“Avtoframos” in Moscow with a production capacity of 188 000 Renault cars a year. Right beside this location is the territory of
the former plant ZIL, which has been restructured according to plans of the Moscow government. 50h are still reserved for
assembling (and later full cycle production) of cars. A daughter company of ZIL has therefore bought another company, which
had signed an agreement with the Russian authorities on car manufacturing. That agreement can be reactivated and grants
several benefits. Renault, Nissan, Hyundai and Fiat are possible partners for this project.40
Furthermore there are still several automotive component manufacturers active in the Moscow oblast, but due to high real
estate and labor costs, the oblast does today not rank on the top for automotive companies willing to localize their production.
8.1. KALUGA OBLAST
According to the Federal State Statistics Service, the total area of the Kaluga oblast is 29,800 km; economically active
population amounts to 553,000 people, total population accounts for 1,009,900 people as of the end of 2012. Major cities are
Kaluga (population 343,000) and Obninsk (population 106,000).
The Kaluga oblast is the leader in the Russian Federation by the growth rate of its industrial output and the second largest by
the growth rate of fixed capital investments per capita.
There are 11 industrial parks in the Kaluga region (please refer to chapter 9.6. for more details) and a special economic zone
Lyudinovo (Trilateral agreement on establishment of an industrial special economic zone on the territory of the Municipal
District of the «Town of Lyudinovo and the Lyudinovo District» was signed on 25.01.2013). These provide automotive industry
investors with the opportunity to quickly organize the construction of factories and production bypassing much of the red tape.
The territory of the Kaluga oblast possesses developed infrastructure and communications. The Kaluga Region is in the top 20
regions in terms of the road network density, including railways and motorways. Internationally important motorways
«Moscow - Brest», «Moscow - Kiev» and «Moscow - Warsaw» pass through the territory of the region. The main railways are
«Moscow - Kiev» and «Vyazma - Kaluga». At present, the city airport undergoes large-scale reconstruction.
The Kaluga oblast has high scientific and innovative potential. There are 28 higher education institutions and over 40 scientific
organizations working in the region.41
Since 2006 the government of the Kaluga oblast has been working on the establishment of a manufacturing cluster in the
automobile industry. As a result, 12,000 new jobs were created at the automotive cluster production facilities. 226,000 vehicles
were produced by the Kaluga region automotive cluster in 2012, for a total of 630,000 vehicles since 2007. Additionally,
500,000 cars were produced by Volkswagen Group Rus Kaluga plant.
40 Vedomosti: Avtoevoluciya, October 2013, p.5.
41 http://admoblkaluga.ru/main/russia/
RUSSIAN CAR INDUSTRY
30
Logistics in the Kaluga Oblast
Source: The Kaluga Region Development Company
The automotive cluster in Kaluga is mainly concentrated in three industrial parks, which are each dominated by a big OEM
plant of an international corporation: “Grabtsevo” with Volkswagen, “Kaluga-Yug” with Volvo and “Rosvo” with PeugeotCitroen-Mitsubishi.
8.2. MOSCOW OBLAST
Moscow and the Moscow oblast on the contrary have long traditions of automotive manufacturing. But in recent years the
development of the city becoming more and more expensive in terms of labor and real estate has led to the closing, relocation
and redevelopment of a number of manufacturing sites to other regions. Nevertheless, due to its favorable location, availability
of resources and investment incentives, Moscow and the Moscow oblast have attracted some global OEMs and suppliers, such
as Renault, Valeo, BASF, Lear, 3M and others. In addition, a number of industrial parks have been created to accommodate
further investors.
According to the Federal State Statistics Service, the total area of Moscow oblast is 44,379 km; economically active population
amounts to 10,768,300 people, total population accounts for 19,027,613 people as of the end of 2012. The main city Moscow
(population 11,979,529) is considered as separate federal subject. Moscow oblast ranked third after Moscow City and Tiumen
oblast by the volume of Foreign Direct Investment in 2012 (USD 4.6 bln).
Industrial manufacturing in Moscow oblast comprises more than 25% of the regional income and more than 40% of the
investments. In terms of industrial manufacturing the region ranks at #2. The major sectors are: machine-building and metal
processing (over 20%), chemicals (over 14%) and metallurgy (10%). There are about 1000 industrial companies based in
Moscow oblast, 30% of which are large and medium-sized manufacturing entities.
RUSSIAN CAR INDUSTRY
31
There are over 350 higher educational institutions working in the oblast.42
Currently, there are two big car production facilities left in Moscow:

Avtoframos which is owned mainly by Renault and produces Renault Logan, Sandero and Duster cars.

ZIL which is in a restructuring process with the support of the Moscow government and plans to produce foreign cars
in the future. The company has not yet decided on its partners. Renault, Nissan, Hyundai and Fiat were under
discussion in this regard.
In the Moscow oblast several automotive component manufacturers are active despite the clear disadvantages like high rent and
labor costs. Obviously for them it is very important to be located centrally (i.e. near the headquarters) and to easily find
qualified staff.
The transport infrastructure of Moscow oblast includes 10 federal motorways, interconnected by ring roads, the most dense
railway network and 3 international airports. Road density is 670 km/1000km2. The Central Ring Road (521 km) is scheduled
for completion by 2017.
8.3. SWOT-ANALYSIS CENTRAL CLUSTER
Table 8: SWOT-Analysis Central Cluster
Strengths

Weaknesses
Kaluga region is ranked #1 in the rating of
investment attractiveness of the World Organization
of Creditors (WOC)

Tax benefits

Administrative support from the Kaluga region legal
entities

Developing industrial parks

Availability of qualified workforce

Developed logistics and transport infrastructure

Proximity to the capital, Moscow, and the largest
consumer market in Russia

Proximity to the federal authorities headquarters

Capacities of European OEMs

Administrative barriers (especially in Moscow oblast)

High turnover and cost of the personnel compared to other
regions of Russia

Possibly higher cost of operation as compared to other
regions
Opportunities
Threats

Volkswagen, Renault and PSMA announced their
further localization plans

Possible changes in both federal and regional legislation


Lack of potential Russian partners with modern
technologies
Growth of competition from already localized producers and
Russian companies
8.4. COMPANY PROFILES OEMS
Golitsino Bus Plant JSC (GAZ Group)
Contact data
Moscow oblast
42 Moscow Region Investment Prospects, Moscow Region Government, http://rustrade.org.uk/eng/wp-content/uploads/Moscow-RegionInvestment-Prospects.pdf
RUSSIAN CAR INDUSTRY
32
Odintsovo district
Malye Vyazemy village, 1
Tel: +7 (495) 647-62-21
E-mail: sekretar@golaz.ru
Web: http://eng.gazgroup.ru/structure/bus/golitsyno/
Established in
1989
Number of employees
265
Annual production
volume by models
2011: GOLAZ-5291 Kruiz – 13 (based on SCANIA chassis); GOLAZ-5251 – 10; LIAZ-5256 – 206
Localization rate by
models
Genuine Russian brand
Plans for future
Develop production of intercity bus GOLAZ-5251 by up to 500 buses annually.
Create new tourist bus Kruiz-2 with production capacity of 200 buses annually.
Foreign suppliers
Golitsino Bus plants uses components from Scania, Eberspächer, Cummins and ZF
Business opportunities
for Swiss suppliers
In order to make its buses more competitive the company has integrated several components of
foreign producers (see above). The engineers are regularly checking the possibility of integrating
other foreign components.
Contact person
Vladimir Syomin – Managing Director
Tel: +7 (49633) 247-62-21
E-mail: semin@golaz.ru
Sources: Spark-Interfax agency, Dow Johns Factiva, public sources
"Marussia Motors" LLC.
Contact data
127473 Moscow
Chernyshevskogo per. 1
Tel: +7 (495) 788 06 92
E-mail: info@marussiamotors.ru
Web: http://www.marussiamotors.ru/
Established in
2007
Number of employees
300
Annual production
volume by models
2000 cars, so far two models have been developed.
Localization rate by
models
Genuine Russian brand
Plans for future
Marussia Motors plans to open a plant in the Moscow region with a capacity of 10,000 cars per
year
Foreign suppliers
KW, Cosworth
Business opportunities
for Swiss suppliers
Marussia Motors is a young company. They are ready to check new components. Marussia was
often mentioned as a favorite to win the tender for the construction of the limousine for the
Russian president and cars for other high ranked officials.
Contact person
Ilya Yurevich Bulychev, General Director
Sources: Spark-Interfax agency, public sources
Peugeot Citroen Mitsubishi Avtomobili Rus LLC
RUSSIAN CAR INDUSTRY
33
Contact data
Kaluga
Rosva industrial park
Tel: +7 (484) 222 86 22
Web: http://pcmarus.ru/
Established in
January 2008
Number of employees
1,700 (3,200 planned)
Annual production
volume by models
Production of Peugeot 308, Citroen C4, Citroen C-Crosser, Mitsubishi Outlander, the initial
plant capacity of 45 thousand cars per year in 2012 with a ramp up to 125 thousand, full capacity
- up to 300 thousand
Localization rate by
models
Peugeot 308 – 33%
Peugeot 408 Sedan – 33%43: vehicle body surface elements, windows, front panels, seats,
bumpers, internal and external plastic elements and wheel rims are produced in Russia. The rest
of the components is imported (50% from Europe, 10% from China, 5% from Argentina)
Mitsubishi Outlander – 10% at the first stage (pressed body parts, bumpers, rear lamps, exhaust
systems, dashboards, seats and glass) – planned to be localized up to 30% by 2014
Citroen C4 L – 10% at the first stage; will be increased up to 30% in the future
According to the agreement with Ministry of Economic Development, the average level of
localization of all PSMA Rus models should have come up to 30% by 2015
Plans for future
Increase its share on the Russian market with up to 6%
Suppliers producing in
RF
PSMA localization in Russia
Supplier
Location
Localized parts
Suppliers of localized car components for the Peugeot 408: localization level – 33%
43
As per Avtostat 26.03.2013
RUSSIAN CAR INDUSTRY
34
Lear Ltd.
Nizhniy Novgorod
region
Seats
Gestamp-Severstal-Kaluga
LLC
Kaluga region
Pressed body parts
Alfa Automotive
Technologies LLC
Moscow
Boot pressed parts
Magna Tehnoplast CJSC
Kaluga, Nizhny
Novgorod
Front and rear bumpers
Yapp Rus Automotive
Systems LLC
Kaluga
Fuel tank
Faurecia Automotive
Development LLC
Kaluga
Exhaust systems, interior plastic
parts, dashboards and consoles,
door lining (front and rear), rear
wheel arch liner, saloon and boot
noise insulation, upholstery, boot
carpet and shelf
Michelin Russian tire
company LLC
Moscow region,
Davydovo
Tires
Eurodisk LLC
St. Petersburg
Pressed wheel disks
HT&L Fitting RUS LLC
Kaluga
Wheel assembly
Tramiko LLC
Stavrovo, Vladimir
region
Roof liner
AGC Bor Glass plant CJSC
Nizhniy Novgorod
region, Bor
Automotive glass complete sets
Leoni Wiring Systems Rus
LLC
Tatarstan,
Naberezhnye Chelny
Harnesses
Valeo
Nizhniy Novgorod
region, Gorodets
Rear lamps
PHR (AD Plastik) CJSC
Samara region, Vintay
Central air deflector
Suppliers of localized car components for the Mitsubishi Outlander III: localization level –
over 10%
Lear Ltd.
Nizhniy Novgorod
region
Seats
Gestamp-Severstal-Kaluga
LLC
Kaluga region
Pressed body parts
Magna Tehnoplast CJSC
Kaluga
Front and rear bumpers
Faurecia Automotive
Development LLC
Kaluga
Front door lining
AGC Bor Glass plant CJSC
Nizhniy Novgorod
region, Bor
Automotive glass, complete sets
Source: AUTOSTAT agency
Business opportunities
for Swiss suppliers
In order to further localize the production the company is looking for suppliers manufacturing in
Russia. Global suppliers should contact the European purchasing office. Only if there is a
manufacturing facility in Russia, contact should be made locally.
Contact person
Jean-Christophe Marchal, General Director
Daniel Majerus, Purchasing Director
E-mail: Daniel.majerus@mpsa.com
Tel : + 7 48 42 22 88 07 (Kaluga), +7 495 775 55 86 (Moscow)
Sources: Spark-Interfax agency, Dow Johns Factiva, public sources
Renault (Avtoframos OJSC)
Contact data
Moscow
Volgogradsky prosp.,42/36
Tel: +7 (495) 7754000
Web: www.renault.ru
Established in
2005
Number of employees
4,000 (6,000 planned)
Annual production
volume by models
CKD production of Renault Logan, Sandero, Fluence and Duster
SKD assembly of Renault Latitude and Koloes
Annual capacity of 188,000 cars
Localization rate by
models
Renault Logan and Renault Sandero level of localization is 60% (based on Autostat agency
formula = cost of localized parts/cost of all parts) and includes pressed parts, bumpers,
RUSSIAN CAR INDUSTRY
35
dashboards, seats, glass, lighting, rear view mirrors, exhaust systems, fuel tanks, batteries,
aluminum wheel disks, tires, some body components, enamels, paints, etc.
Plans for future
Modernize production line and increase production capacity
Suppliers producing in
RF
Renault localization in Russia
RUSSIAN CAR INDUSTRY
36
Supplier
Location
Localized parts
Alfa Automotive
Technologies LLC
Moscow
Pressed body parts
Avtocomponent Plant
LLC
Nizhniy Novgorod
Rear-view mirrors
BASF Vostok LLC
Moscow region, Pavlovsky
Posad
Paints, enamels, lacquers
AGC Bor Glass plant
CJSC
Nizhniy Novgorod region,
Bor
Automotive glass complete sets
Bosal Avtoflex
Orenburg Region,
Novoorsk
Exhaust systems
D Plast-Eftek NN
Nizhniy Novgorod
Wax
Dow Izolan JV LLC
Moscow region, Vladimir
Betaseal, Betawipe pastes
DuPont Russian Paints
Yaroslavl
Cataphoresis, paints, enamels,
lacquers
Elast-Techologies LLC
St. Petersburg
Mudguards
Faurecia Technoplast
Automotive
Nizhniy Novgorod
Door panels, dashboards,
dashboard cover
Stavrovo Automotive
Systems (Inergy) LLC
Vladimir region, Stavrovo
Fuel tank
National accumulator
corporation “ISTA”
Dnepropetrovsk, Ukraine
Batteries
K&K
Krasnoyarsk
Wheel disks
PHR CJSC
Samara
Carpets, roof liner, boot racks
Lear Ltd.
Nizhniy Novgorod region
Seats
Lik-Avto LLC
Nizhny Novgorod region,
Gorodets
Wiring
Polad CJSC
Samara region, Togliatti
Wing arch top cover, rear door and
boot lining with noise insulation,
mudguards
NPP Soteks CJSC
Nizhny Novgorod
Polyurethane seat and seat back
filler
Revokot Mastics LLC
Moscow region, Kolomna
Painting mastics
Shell Neft CJSC \ Shell
Neft LLC
Moscow
Brake fluid
Pirelli
Moscow
Tires
Valeo Climate Control
Tomilino LLC
Moscow region, Tomilino
Saloon heater
AVTOVAZ OJSC
Samara region, Togliatti
Chassis (front and rear axle beams,
engine frame, front rotary elements)
Source: AUTOSTAT agency
Business opportunities
for Swiss suppliers
Renault/Auvtoframos has already a very high localization rate. Nevertheless there still is room
for improvement and in order to further localize the production the company is looking for
suppliers manufacturing in Russia. Global suppliers should contact the Paris purchasing office.
Contacts should be made locally only if there is a manufacturing facility in Russia.
Contact person
Bruno Ancelin, Managing Director, Alliance Director of Industrial Planning
E-mail: bruno.ancelin@renault.com
Sources: Spark-Interfax agency, Dow Johns Factiva, public sources
Volkswagen Group Rus LLC
Contact data
Kaluga
Grabtsevo industrial park
Avtomobilnaya str., 1
Tel: +7 (4842) 711011
E-mail: lilija.leonowa@volkswagen-rus.ru
Web: www.volkswagengrouprus.ru/
Established in
2006
Number of employees
6,100 (4,200 initially planned)
Annual production
volume by models
Full cycle consumer car factory (Volkswagen Polo Sedan and Tiguan; Skoda Octavia and
Fabia), including welding, painting, design
Localization rate by
models
The level of localization is approximately 50% (seats, tires, filters, fuel tanks, wheel disks,
interior trim elements, axles, lighting equipment and rear-view mirrors, shock absorbers,
dashboard elements, exhaust systems and dashboards, front body elements, bumpers, and fuel
tank cover modules, boot and floor trim elements, etc.).
Volkswagen Polo Sedan is 40% localized.
Planned level of localization is 60%.
Plans for future
Develop production line, further localization, increase market share
Suppliers producing in
RF
Volkswagen localization in Russia
RUSSIAN CAR INDUSTRY
37
Supplier
Location
Localized parts
Lear Ltd.
Kaluga, Nizhniy
Novgorod region
Seats
Gestamp-SeverstalKaluga LLC
Kaluga region
Pressed body parts
Nizhnekamskshina OJSC
Tatarstan, Nizhnekamsk
Tires
PTG BIG (BIG Filter)
St. Petersburg
Air filters
Visteon Rus LLC
Kaluga
Interior trim elements
Bentler Kaluga LLC
Kaluga
Suspension elements
Magna Tehnoplast CJSC
Kaluga, Nizhny Novgorod
Front body elements, bumpers and
fuel tank cover modules
Yapp Rus Automotive
Systems LLC
Kaluga
Fuel tank
HP Pelzer RUS
Kaluga
Boot and floor trim elements
Faurecia Automotive
Development LLC
Kaluga, Leningrad region,
Luga
Exhaust systems and dashboard
elements
PF Continental
Automotive Rus LLC
Chistopol
Dashboard elements
BASF Vostok LLC
Moscow region
Basic enamels and lacquers
Avtokomponent LLC
Nizhny Novgorod
Side mirrors, plastic saloon
elements
JV Prevent Immobilien
Rus
Moscow region, Ozery
Seat covering
Microtech CJSC
Kaluga
Wiring harness components
Cherepovets Integrated
Iron-and-Steel Works
OJSC
Vologda region,
Cherepovets
Rolled metal
HT&L Fitting RUS LLC
Kaluga
Mounting wheels
NLMK
Lipetsk
Rolled metal products
Source: AUTOSTAT agency
Business opportunities
for Swiss suppliers
Volkswagen plans to further localize the production. The company is looking for suppliers
manufacturing in Russia. Furthermore it has decided to set up an engine production in Russia.
Global suppliers should contact the European purchasing office. Only if there is a manufacturing
facility in Russia, contact should be made locally.
Contact person
Dr. Josef Baumert, Plant Director
Sources: Spark-Interfax agency, Dow Johns Factiva, public sources
Volvo Vostok CJSC
Contact data
Kaluga
Kaluga-Yug industrial park
Suvorova str. 29
Tel: (4842) 71-44-00; +7 (495) 9611030
E-mail:
Volvotruck.ru@volvo.com,
svetlana.katrytch@volvo.com
Web: http://www.volvocars.com/ru/
anna.kalashnikova@volvo.com,
Established in
June 2007
Number of employees
700 (1,000 initially planned)
Truck production (Volvo and Renault brands):
In 2012: 4,387 Volvo trucks and 1,572 Renault trucks.
Total production capacity allows producing 10,000 Volvo trucks and 5,000 Renault trucks
annually.
The development of new plant for Volvo construction division started in 2012. Planned annual
capacity is 2,000.
Annual production
volume by models
RUSSIAN CAR INDUSTRY
38
Localization rate by
models
Plans for future
About 30%
Planning to localize 40% of cabin production by 2016 (EUR 90 milion to be invested) with a
production capacity of 15,000 cabins per year.
Additional EUR 53 milion will be invested into parts and components production.
Suppliers producing in
RF
n.a.
Business opportunities
for Swiss suppliers
Volvo is planning to localize the production of cabins. Furthermore, it would like to purchase
electrical components and details of the running gear in Russia.
Contact person
Lars Peter Anderson, General Director
Sources: Spark-Interfax agency, Dow Johns Factiva, public sources
AMO ZIL
Contact data
Moscow
Avtozavodskaya str. 23
Tel: +7 (495) 620 45 26
Web: http://www.amo-zil.ru/en/
Established in
1916
Number of employees
Annual production
volume by models
5,670
2009: 2,332 CVs
2010: 1,160 CVs
2011: 1,265 CVs
Localization rate by
models
Genuine Russian brand
Plans for future
The company is in a rather difficult economic situation with a declining production.
Negotiations with a few global OEMs on joint production of LCVs (among others: Hyundai, Fiat,
Renault, Nissan) Development of LCVs (ZIL 5301 and 4327) and MCVs (ZIL 4331 and 4334)
chassis production. For the production of foreign car models the daughter company
MOSAVTOZIL will be in charge.
Production of automotive components and parts for LCVs and MCVs.
Production of special purpose vehicles based on ZIL and other OEMs chassis.
Foreign suppliers
ZIL has worked with various partners for instance the Japanese IHI, the Chinese FAW and the
Austrian Rozenbauer.
Business opportunities
for Swiss suppliers
n.a.
Contact person
Igor Zakharov, General Director
E-mail: zaharov@amo-zil.ru
Contact person MOSAVTOZIL: Igor Kulgan, tel: + 7 (495) 620 45 01
Sources: Spark-Interfax agency, Dow Johns Factiva, public sources
8.5. COMPANY PROFILES OES
Alfa Automotive Technologies LLC – JV between ZIL (Russia) and IHI Corporation (Japan)
Contact data
RUSSIAN CAR INDUSTRY
39
Moscow
Avtozavodskaya str, 23, bld.15
Tel.: +7 (495) 7831745
Web: http://alphaat.ru/en
Established in
2009
Number of employees
442
Component production
Production of pressed body parts, stamped body parts
Plans for future
n.a.
Customers
Renault (Avtoframos)
Peugeot, Citroen (PSMA Rus)
Nissan, Lada (AVTOVAZ)
ZIL (AMO ZIL)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Maxim Kondratiev, General Director
m.kondratiev@alphaat.ru
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
BASF (Germany)
BASF Vostok LLC
Contact data
Moscow oblast
Pavlovsky Posad
Mishutinskoe shosse, 72
Tel.: +7 (496) 4351949
Web: http://www.basf-coatings.ru/
Established in
2008
Number of employees
50
Component production
Automotive coating (paints, enamels, lacquers)
Production capacity: 6,000 tons annually
Plans for future
Increase production capacity up to 20,000 tons per year
Customers
Renault (Avtoframos)
Volkswagen (Volkswagen Group Rus LLC)
Lada, Renault (AVTOVAZ)
Ford (Ford Motor Company)
Automotive service companies
Business opportunities
for Swiss suppliers
Global suppliers should contact the European purchasing office.
Contact person
Semen Belyakov – General Director
semen.belyakov@basf.com
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Becema CJSC (Russia)
Becema-Kaluga LLC, plant in projection
Contact data
RUSSIAN CAR INDUSTRY
40
Kaluga
Kaluga-Yug park
Kirpichnaya str. 3
Tel: +7 (4842) 514626
E-mail: info@becema.ru
Web: http://www.becema.ru/en-GB/Main
Established in
Projection phase
Number of employees
500 (planned)
Component production
Automotive detachable equipment production (vessels, tanks)
Plans for future
Currently, the company has invested EUR 1.2 milion of EUR 13.3 milion planned. The
construction is in progress.
Customers
n.a.
Business opportunities
for Swiss suppliers
n.a.
Contact person
Ludmila Beznosikova, General Manager
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Benteler Automotive LLC (Germany)
Contact data
Kaluga
A-park
Suvorova str., 121/2
Tel: +7 (4842) 211-168
E-Mail: olga.kargaschina@benteler.ru
Web: http://www.benteler.de
Established in
2009
Number of employees
350
Component production
Automotive suspension components production
Plans for future
Benteler plans to deliver its components to five OEMs in Russia
Customers
Volkswagen (Volkswagen Group Rus LLC)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Hubert Koopmann – General Director
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Bosal International LLC (Belgium)
Contact data
RUSSIAN CAR INDUSTRY
41
248008 Kaluga
171 Tarutinskaya str,
Tel: +7 (4842) 22-24-15, 22-24-17, +7 (495) 9810431
E-mail:
Anna.Bogdanova@eur.bosal.com,
http://www.bosalrussia.ru/
BRUS_post@eur.bosal.com:
Web:
Established in
2008
Number of employees
30 (1000 planned)
Component production
Production of exhaust systems and tow bars for OEMs and the aftermarket
Plans for future
To add production lines for tube, jacks, metal substrate radial flow catalytic converters, hot
alloyed strip casting and rolling, and foil rolling and coating + to establish a major logistics hub
enabling other suppliers to distribute replacement parts for the aftermarket throughout Russia.
Customers
Renault/Dacia (Avtoframos)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Vadim Terekhin, General Director
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Continental Automotive Systems Rus LLC
Contact data
Kaluga
Fridrikha Engelsa str, 163
Tel.: +7 (4842) 717-219; (4842) 717-220
E-mail: gureeva@nppavtel.ru,
Daria.Piskunova@continental-corporation.com
Web: www.conti-online.com
Established in
2009, plant operational from January 2013
Number of employees
200, 800 planned
Component production
Engine control systems, injection systems and fuel system components
Engine control systems annual capacity: 1 milion blocks (mostly its Easy-U 32-bit ECU)
Plans for future
If the project is successful, there is room for another production line on place
Customers
Peugeot (PSMA Rus)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Christian Koegl, General Director
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Dow Izolan LLC – JV between Dow Chemical (USA) and NPP Izolan (Russia)
Contact data
Moscow oblast
Vladimir
Bolshaya Nizhegorodskaya str., 81
Tel.: +7 (4922) 412701
E-mail: info@dow-izolan.com
Web: http://www.dow-izolan.com/ru/
Established in
2006
RUSSIAN CAR INDUSTRY
42
Number of employees
150 (120 initially planned)
Component production
Rigid polyurethane foams, flexible polyurethane foams, shoe soles, adhesives, compounds,
sealants, elastomers and coatings, release-agents
Plans for future
To increase production capacity and develop new products in 2013-2017 period
Customers
More then 1000 clients in Russia, Ukraine, Kazakhstan, etc., including Renault (Avtoframos)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Mikhail Tsarfin, General Director
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Faurecia Automotive Development LLC (France)
Contact data
Kaluga
V-park
Glagoleva str., 3
Tel.: +7 (4842) 2111914; (4842) 59-19-43
E-mail: alexandra.dobrovolskaya@faurecia.com
Web: http://www.faurecia.com
Established in
2011, plant under construction
Number of employees
35 (300 are planned on full capacity for two new plants – exhaust systems and interior
production)
Component production
Exhaust systems, interior plastic parts, dashboards and consoles, door lining (front and rear),
rear wheel arch liner, saloon and boot noise insulation, upholstery, boot carpet and shelf
Plans for future
n.a.
Customers
Volkswagen (Volkswagen Group Rus LLC)
Peugeot, Citroen (PSMA Rus)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Bertrand Lavolle, General Director
Sergey Fedchenko, Director of Kaluga branch
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Gestamp-Severstal-Kaluga LLC (Spain)
Contact data
Kaluga oblast
Grabtsevo park
Zavodskaya str. 57
Tel:+7 (4842) 21-10-30
E-mail: mkostina@ru.gestamp.com
Web: http://www.gestamp.com/
Established in
2010
Number of employees
160
RUSSIAN CAR INDUSTRY
43
Component production
Production of car body components – chain of processing rolled metal products, from coil to car
components.
Production capacity – 13 milion stamped parts annually
Plans for future
To upgrade production facilities
Customers
Volkswagen (Volkswagen Group Rus LLC)
Peugeot, Citroen (PSMA Rus)
Renault (Avtoframos)
Lada (AVTOVAZ)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Josep Rodo Cima, General Director
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
HP-Pelzer Rus LLC (Germany)
Contact data
Kaluga
3d Akademichesky proezd, 19/2
Tel: +7 (4842) 220-980
E-mail: Yuliya.korneeva@hp-pelzer.com, Andrey.bichev@hp-pelzer.com
Web: http://www.pelzer.de/
Established in
2010
Number of employees
130
Component production
Production of transportation devices and equipment
Plans for future
The production facilities should be enlarged, planned overall investment EUR 20 milion .
Customers
Volkswagen Polo (6 products), Skoda Octavia (4 products) (Volkswagen Group Rus LLC)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Claus Juergen Zikking, General Director
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Lear LLC (USA)
Contact data
Kaluga
171B Tarutinskaya str.
Tel.: +7 (4842) 791822
E-mail: TOvechkina@lear.com
Web: http://www.lear.com/en
Established in
2009
Number of employees
170 (250 planned)
Component production
Car seats production
RUSSIAN CAR INDUSTRY
44
Plans for future
n.a.
Customers
Volkswagen (Volkswagen Group Rus LLC)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Jean Bernard Blondeau, General Manager
Frank-Ulrich Richter, Head of Kaluga branch
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Magna Technoplast CJSC (Canada)
Contact data
Kaluga,
Grabtsevo park,
1st Automobilny proezd, 21
Tel: +7 (4842) 761901
E-mail: info.technoplast@magna-russia.com; natalia.khokhlova@magna-russia.com
Web: http://www.magnatechnoplast.ru/
Established in
2009
Number of employees
340
Component production
Bumper production and coating
Plans for future
Currently Magna has about 20 local suppliers. The company plans to double this figure.
Customers
Volkswagen and Skoda (Volkswagen Group Rus LLC)
Peugeot, Citroen, Mitsubishi (PSMA Rus)
Business opportunities
for Swiss suppliers
Magna regularly organizes forums for existing and potential Russian suppliers.
Contact person
Dmitry Popov, General Manager
E-mail: kaluga@magna-russia.com
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Michelin Russian tire company LLC (France)
Contact data
Moscow oblast
Davydovo
Zavodskaya str. 1
Tel: +7 (49641) 73532
Web: http://www.michelin.ru/
Established in
2004
Number of employees
1,200 (include Russia and CIS offices)
Component production
MICHELIN and B.F.Goodrich summer and winter car tires: 1.5-2 milion car tires.
Since 2011, truck tires recovery shop: 50,000 of truck tires recovery.
Since April 2013, logistics complex, which can store 240,000 car tires or 80,000 truck tires. Its
launch will enable Michelin to boost daily warehouse capacity in Davydovo to 64,000 car tires
and 16,000 truck tires.
RUSSIAN CAR INDUSTRY
45
Plans for future
Michelin announced a further investment of EUR 35 million into the plan in Davydovo.
Furthermore the company may invest further in projects in Russia and the CIS.
With respect to the new logistics complex, plan to reduce tire supply times by 30% and cut tire
storage costs by 5% annually over five years. Warehouse efficiency will increase 7% per year and
storage capacity will increase 50%.
Customers
Peugeot, Citroen (PSMA Rus)
Ford (Ford Motor Company)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Thierry Chiche, General Manager
E-mail: thierry.chiche@ru.michelin.com
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Pilkington Glass LLC (UK)
Contact data
Moscow oblast
Zhukovo
Stekolnaya str. 1
Tel: +7 (495) 9805027
E-mail: info@pilkington.ru
Web: www.pilkington.ru
Established in
2006
Number of employees
200
Component production
Glass production: 240,000 tons
Plans for future
2011 Pilkington agreed with the Russian STiS to build a new plant for energy-efficient and selfcleaning glass for the construction. Investments are about EUR 300 million.
Customers
Volkswagen (Volkswagen Group Rus LLC)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Alexey Strygin, General Manager
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Severastal-Gonvarri Kaluga LLC (Spain)
Contact data
Kaluga
Grabtsevo park
Avtomobilnaya str. 1
Tel: +7 (4842) 719600
E-mail: info.sgk@gonvarri.com
Web: http://sgk.severstal.com/
Established in
2009
Number of employees
78
Component production
Service center for metals (blanking, slitting, cut to length):
RUSSIAN CAR INDUSTRY
46
Plans for future
C2013 the company plans to open a second line. With that the capacity will amount to 170
thousand tons of metal-roll per annum
Customers
Renault-Nissan, Peugeot, Volkswagen
Business opportunities
for Swiss suppliers
n.a.
Contact person
Dmitry Zavodsky, General Director
Tel: +7 (4842) 719600
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Valeo Climate Control Tomilino LLC (France)
Contact data
Moscow oblast
Tomilino
Garshina str., 11
Tel: +7 (4980134) 615700
E-mail: marianna.pak@valeo.com
Web: http://www.valeo.com/
Established in
2008
Number of employees
78
Component production
Thermal systems (heating, ventilation and air-conditioning), saloon heaters production
Plans for future
Opening of other plants
Customers
Renault (Avtoframos)
Lada (AVTOVAZ)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Antoine Delplyas, General Manager
Marianna Pak, International Development Manager
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Visteon Rus LLC (USA)
Contact data
Kaluga
A-Park
1st Automobilny proezd 7
Tel: +7 (4842) 211-272; (4842) 211-261
E-mail: vbartoshuk@visteon.com, klevina@visteon.com
Web: http://www.visteon.com/
Established in
2009
Number of employees
60
Component production
Automotive components, systems and assemblies production
Annual production capacity: approximately 120,000 sets
Plans for future
Plans to attract new clients in Russia and after that start exporting to the CIS and other markets
RUSSIAN CAR INDUSTRY
47
Customers
Volkswagen Polo (Volkswagen Group Rus LLC)
Renault (Avtoframos)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Pascal Wable, General Director
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Yapp Rus Automotive Systems LLC (China)
Contact data
Kaluga
Grabtsevo park
2nd Automobilny proezd, 2
Tel: +7 (4842) 211-501; (4842) 72-13-00
E-mail: ekatarinagaliczina.ru@yapp.com, work@yapp.com
Web: http://www.yapp.com/en/index.htm
Established in
2011
Number of employees
130
Component production
250,000 car fuel tanks annually
Plans for future
n.a.
Customers
Volkswagen (Volkswagen Group Rus LLC)
Peugeot, Citroen (PSMA Rus)
Business opportunities
for Swiss suppliers
n.a.
Contact person
Yamin Uan, General Director
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
List of other OES in Kaluga and Moscow regions
Date of
investment
agreement
signing
Revenue
(Euro mln)
last
available
Project
implementation
stages
OES (country)
Location
Key products
Avtopribor-mash
LLC (Russia)
Kaluga
Automotive sensor
components, terminals for
power transformers, etc.
1992
2.2 (2011)
CIE-Avtokom
(Spain) – JV
between CIE
Automotive
(Spain) and
Avtokom
Kaluga
Stamping, tube forming,
welding, machining and
plastic injection
2009
1.1 (2011)
Construction
completed
Continental
Kaluga LLC
(Germany)
Rosva
industrial
park, Kaluga
Tire production
28.11.2011
n/a
Construction
completed
RUSSIAN CAR INDUSTRY
48
Construction
completed
FD CJSC
(Russia)
Kaluga
Micro and auto electronics
n/a
n/a
Construction
completed
Fuchs Oil LLC
(Germany)
Rosva
industrial
park, Kaluga
Lube production44
27.06.2011
n/a
Construction
completed
Fuyao Glass Rus
LLC (China)
Grabtsevo
industrial
park, Kaluga
Automotive glass production
16.06.2011
n/a
Construction
completed
HT&L Fitting
RUS LLC (Italy)
Kaluga
Wheel assembly
2009
1.2 (2011)
Construction
completed
KZAE OJSC
(Russia)
Kaluga
Electronics production
1992
27.7
(9m2012)
Construction
completed
40.9 (2011)
Mahle
(Germany)
Kaluga region,
Obninsk
10,000 square meter
shipping center for the spare
parts business in Russia.
Mahle production units may
also be localized at the site
2012
n/a
Construction
completed
Pramo Concern
CJSC (Russia)
Moscow
Generators, thermostats,
starters, wiping systems,
radiators for foreign brands
2000
n/a
Construction
completed
Scherdel Kaluga
LLC (Germany)
Kaluga region
Assembly parts, welding
assembly, wire and tube
bending parts
2010
2.3 (2011)
Construction
completed
Volkswagen
Group Rus LLC
(Germany)
Grabtsevo
industrial
park, Kaluga
Engine production
29.08.2012
n/a
Construction
completed
8.6. SUPPORT MEASURES OF THE KALUGA GOVERNMENT
Legal acts
As of 01/01/2013, investment activity in Kaluga oblast is supported by the following legal acts:

The Law of the Kaluga oblast № 31-OZ dated 16.12.1998 "About state support of the investment activity in the Kaluga
oblast "
o Financial support under regional budget
o Tax abatements and incentives
o Tax credits
o State support and participation in preparation and realization of regional target programs and investment
projects
o Informational support

The Law of the Kaluga oblast № 263-OZ dated 10.11.2003 "About corporate property tax"
o Corporate property tax rate equals 1.1% for newly produced (acquired) property (within a tax period) and for
modernized (revamped) fixed assets (within a tax period) in respect of the value added in connection with
such a modernization (revamping)
44
Oil production is included into automotive components production list
RUSSIAN CAR INDUSTRY
49
o
Apart from that, starting from January 1, 2013 pursuant to subparagraph 12, paragraph 1, article 3 of the Law,
tax breaks will be provided to organizations with respect to revamped, modernized, upgraded property
and/or acquired equipment under production facilities modernization program duly registered pursuant to
Kaluga oblast laws, if the relevant investments are within the Table brackets:
Table 9: Reduced Property Tax Rate Conditions Kaluga
Amount
investment
millions, USD )
of
(in
Tax free period
(2.2% standard
rate)
3.22 – 9.66 inclusive
1
9.66 – 16.1 inclusive
2
Over 16.1*
3
*Benefits are granted to pharmaceutical companies for a period of 5 years
Source: The Law of the Kaluga oblast № 263-OZ dated 10.11.2003 "About corporate property tax"

The Law of the Kaluga oblast № 621-OZ dated 29.12.2009 "About the reduction of the tax rate of corporate income
tax payable to the regional budget for companies investing in the Kaluga oblast "
o A taxpayer investing in production facilities modernization programs shall pay the income tax at the following
rates depending on the amount invested in revamping, modernization, upgrading and/or acquisition of
additional equipment under production facilities modernization programs:
1. From RUR 10 million to RUR 30 million – 15%
2. From RUR 30 million to RUR 70 million – 14%
3. Over RUR 70 million – 13.5%
o Investors included in the Production Facilities Modernization Program Registry shall have a right to apply a
lower tax rate when calculating corporate income tax for the period, in which the relevant capital investment
cumulative amount reached the aforesaid sum in the period between January 1, 2013 and December 31, 2015
o For limited number of industries reduced income tax rate period is seven years in the case of total capital
expenditures in the first three years being over RUR 3,000 million (please refer to table [13] for more details on
tax rate)
Table 10: Reduced Income Tax Rate Conditions Kaluga
Income tax rate
Tax free period
(one-by-one)
13.5%
4
14.6%
1
15.7%
1
16.8%
1
Source: The Law of the Kaluga oblast № 621-OZ dated 29.12.2009 "About the reduction of the tax rate of corporate income tax payable to the regional budget for investors carrying out
investment activities in the Kaluga oblast "

The Kaluga oblast Ministry for Economic Development regulation № 92-p dated 01.02.2013 "About approving the
register of investment projects, the registry of manufacturing modernization programs and their amending"
Social benefits are guaranteed by the following order:

Order of the Ministry of Economic Development of the Kaluga oblast from 21.10.2011 № 792-p " On approval of the
Regulation on the provision of social benefits to employees of organizations that are located and operate directly in the
industrial parks and technology parks for reimbursement of the debt payment or loans on purchased or constructed
houses, including mortgages" under the long-term program "Promotion of Housing Construction in the Kaluga oblast "
for 2011-2015 "45
45
Kaluga Region Development Corporation: http://invest.kaluga.ru/en/info/documents/
RUSSIAN CAR INDUSTRY
50
Kaluga also provides infrastructure for investments projects: There are five industrial parks in Kaluga which focus on the
automotive industry:
Industrial park
Resident companies
Area,
ha,
total
(free)
A-Park (part of Grabtsevo
industrial park)
(http://invest.kaluga.ru/en/proj
ects/objects/a_park_project/)


LLC Bentler Automotive – production of components for car suspension
LLC Visteon Rus – production of components for car doors
20 (13)
Grabtsevo
(http://invest.kaluga.ru/en/proj
ects/objects/grabtsevo/)








LLC Volkswagen Group Rus – production of light vehicles
LLC Severstal-Gonvari-Kaluga – service center for metals
LLC Gestamp-Severstal-Kaluga – car body components production
CJSC Magna Technoplast – production and paintings of bumpers
LLC JAPP Rus Automobile systems – of car fuel tanks in plastic
LLC Novo Nordisk – production of insulin
CJSC Berlin Hemi AG/ Berlin Pharma – production of pills
LLC Fuyao Steklo Rus – production of glass
730
(445)
Kaluga-Yug
(http://invest.kaluga.ru/en/proj
ects/objects/ksouth/)




CJSC Volvo Vostok – production of commercial trucks and lorries
CJSC Becema Kaluga – production of car bodies and tanks
LLC Mako Furnitura – production of components of window frames
LLC Merkator Holding – production of overhanging equipment for
servicing the roads
115
(30)
Rosva
(http://invest.kaluga.ru/en/proj
ects/objects/rosva/)

LLC Peugeot-Citroen-Mitsubishi Automobiles Ru – production of light
vehicles
LLC GE Rus – turbine repair
LLC Fuchs Oil – production of lubricating oils
LLC Continental Kaluga – production of tires
472
(212)
V-park (part of Rosva industrial
park)

Faurecia Automotive Development – production of transportation
devices and equipment
11 (n/a)



Source: The Kaluga Region Ministry for Economic Development
The Automotive Industry Training / Re-Training Center was established at Kaluga IT and Management College. The training
facility has an area of 10,500 m2, 30 shops and 14 classes. Up to 500 people can be trained simultaneously.46
The center has modern European equipment and relevant methodological training materials. Both shops and classes of the
center have an optimal set of training aids (multimedia presentations, training videos, visual aids, stands with training
materials, process equipment). The training is delivered by highly qualified lecturers having certificates issued by the leading
European educational institutions.
The center provides training in the following key areas: welding, hydraulic and pneumatic automation systems, motor
transport, production automation systems, robotics, logistics, mechanic and assembly works, mechanical metal processing,
industrial electrical and electronic equipment, etc.
The center trains 2,824 people, including 2,000 trainees attending vocational training programs arranged within the scope of
agreements concluded between the Kaluga oblast government and the leading employers of the region. Apart from that, the
training center offers re-training and re-qualification programs. Over 2,000 people were re-trained in 2012.
The center successfully implements the dual education approach to train personnel for LLC Volkswagen Group Rus and LLC
PSMA Group.
46
Kaluga Region Development Corporation, http://invest.kaluga.ru/en/press/gallery/54/
RUSSIAN CAR INDUSTRY
51
8.7. SUPPORT MEASURES OF THE MOSCOW OBLAST GOVERNMENT
A full list and description of legal acts and investment incentives of Moscow oblast are available on the following website (in
Russian only): http://invest.mosreg.ru/presentations/docs/
Table 11: Tax benefits in Moscow oblast
Type of tax
General tax rate
Tax rate for new investors
Tax rate on Dubna Special Economic
Zone
Income tax
20%
15.5% (up to 8 years)
15.5% (up to 5 years)
Property tax
2.2%
from 0% (up to 7 years)
from 0% (up to 5 years)
Land tax
0.3-1.5%
Provided by the
municipality
0% (up to 5 years)
VAT
18%
18%
0% (on equipment imports)
The Moscow oblast can offer the benefits of the Special Economic Zone Dubna to investors. Residents of the zone have the right
to carry out technological innovation activities in the territory of the Special Economic Zone, therefore the zone is not suitable
for big scale production like in automotive manufacturing, but rather for high-tech production and research.
There are Special Industrial Production Zones in Klin, Noginsk and Stupino with a total territory of 1500 ha, developed by a
consortium of Japanese integrators.
8.8. CENTRAL CLUSTER DEVELOPMENT
Although for the Moscow region the development of an automotive cluster is a priority it has not yet decided on a special
strategy on how to develop this sector further. When localizing, automotive producers can profit from benefits, which are
generally offered to all investors.
On the other hand, Kaluga has a clear vision on how to further develop the automotive cluster there. In accordance with the
Kaluga oblast investment development strategy 2020, development of the automotive cluster is defined as one of the key
objectives of the region.
The key goals of the automotive cluster development are

Automotive production maximum localization by development of the automotive components manufacturing

Integration of the currently existing manufacturers in Kaluga oblast into production process line by modernization and
reorganization activities

Support of small and medium engineering and technological businesses in the automotive sector

Development of R&D centers in the automotive sector
Major steps and guidelines:

Reduction of the administrative entry barriers

Development of industrial parks and centers

Stimulation of innovative products and approaches

Development of education and recruitment systems

Tax benefits
RUSSIAN CAR INDUSTRY
52
9. Volga Cluster
The automotive cluster of the Volga district is by far the largest in Russia. It consists of four major regional automotive
subclusters and produces about half of all cars manufactured in Russia. This territory is the traditional homeland of the car
producers in Russia, dating back to Soviet times. In every region one big player marks the center of the regional subcluster:




AVTOVAZ in Samara oblast, which manufactures personal cars, pickup trucks and LCVs;
GAZ in Nizhny Novgorod, which manufacture light and medium-duty commercial vehicles, buses and passenger cars;
KAMAZ in Tatarstan, which manufacture trucks, trailers, buses, tractors and special cars for oil and gas complex,
wheel tractors, road- construction and municipal machinery;
UAZ in Ulyanovsk, which manufacture SUVs, pickups, LCVs and microbuses.
In former times these huge companies with several thousands of employees each were organized as vertically integrated
companies. Nowadays, it turned out, that these giants are not flexible enough to answer the demands of the markets. Therefore
many of the auto component divisions were disintegrated and work as juridically independent suppliers. Nevertheless, there are
still tight connections between the OEMs and their former divisions.
Currently, the main target of virtually each of these traditional Russian automotive component producers is not only to
manufacture the traditional components for traditional Russian car models, which are no longer produced, but to develop new
components which do meet the increased quality and innovation standards of the Russian OEMs and ideally also of the foreign
OEMs. Some of them try to do it on their own, while others seek the support of foreign OESs.
However, as the market for quality components is growing, it gets more and more interesting for foreign OESs and they are now
in the process of localizing their production in Russia. This is a serious threat for Russian traditional car component producers
of which not all manage to adapt to the new circumstances.
Generally speaking, we can see three types of component producers in this cluster:
1.
2.
3.
Genuine Russian OESs, producing for a very good price and adapting somewhat successfully to the new
requirements of the market.
Joint ventures, having good knowledge of technologies and the local market, trying to integrate the two different
business cultures.
Foreign OESs, providing excellent products and adapting to the Russian reality with its administrative
difficulties.
Which of these strategies is more successful cannot be judged from a general point of view. It depends on the concrete product,
mainly on the technology gap between Russian and foreign producers in a certain field.
Despite the difficulties and challenges, which OESs in this cluster encounter in actuality, the current development shows that
the Volga district will remain probably the most important cluster for the automotive production in Russia. The competitive
advantages for automotive producers like professional staff and established education and training programs have lead to the
fact, that many new investors, even when going for a greenfield project, choose this region with its long-lasting automotive
traditions as location for their business.
The oblast administrations, trying to keep its workforce busy encourage automotive projects with large incentives.
9.1. THE NIZHNY NOVGOROD OBLAST
According to the Federal State Statistics Service, the total area of the Nizhny Novgorod oblast is 76,900 km2, the total
population amounts to 3,310,597 people. Major cities are Nizhny Novgorod (1,250,615 inhabitants) and Arzamas (106,362
inhabitants).
RUSSIAN CAR INDUSTRY
53
Agricultural land occupies 41% of this area; forests, 48%, lakes and rivers, 2%; and other lands, 9%. The oblast is not rich in
natural resources, which are, mostly, limited to commercial deposits of sand, clay, gypsum, peat, mineral salt, and timber.
The oblast ranks seventh in Russia in industrial output, while the processing industry predominates in the local economy. More
than 650 industrial companies employ nearly 70,000 people, or 62% of the workforce involved in material production. Industry
generates 83% of the regional GDP and accounts for 89% of all material expenditures. The leading sectors are engineering and
metalworking, followed by chemical and petrochemical industries and forestry, woodworking, and paper industries. The first
three sectors account for about 75% of all industrial production.
Nizhny Novgorod is very well linked by train. Since December 2002, a fast train has been transporting passengers between
Nizhny Novgorod and Moscow in less than five hours. Currently, the route is served by the high-speed rail Sapsan. The city lies
along the Trans-Siberian Railway, with direct trains to major cities in the Urals and Siberia, as well as to Beijing, Pyongyang,
and Ulan-Bator. The Nizhny Novgorod International Airport has direct flights to major Russian cities, as well as to Frankfurt,
Dubai, Prague. The city is also an important center of Volga cargo and passenger shipping and is served by Russian highway M7 (Moscow – Nizhny Novgorod – Kazan – Ufa).47
The cluster in Nizhny Novogorod dates back about 80 years, when the GAZ plant was built. After few difficult years, following
the colapse of the Soviet Union, the cluster has been developing well. Foreign companies brought new technologies and the
local manufacturers increased the quality of their products in order to compete with the foreign ones. Today there are several
machine-building, military and devices producers located in the area, which manufacture components for the automotive
OEMs. Furthermore the cluster includes several universities, scientific institutes, engineering schools and R&D facilities.48
In 2011 the government of the Nizhny Novgorod oblast, the Holding “Russkie Mashiny” and GAZ signed an agreement
according to which the companies of the holding will invest about 7 billion RUR in the automotive industry in the oblast. The
government for its part will work on the complex development of the companies in this sector. GAZ today focuses on the
production of light commercial vehicles and covers about half of the market in this segment in Russia. In spring 2013 the
company started with a new generation of this line, the Gazel Next. Besides its own brands, GAZ assembles cars for Volkswagen,
General Motors and Daimler. Along with this, GAZ develops the cooperation with foreign auto component producers like
Bulten.49
9.2. THE SAMARA OBLAST
Samara oblast is located in the southeastern part of European Russia on the banks of the Volga River. The oblast covers an area
of 53.6 thousand square km, the total population amounts to 3,214,100 people. The largest cities and towns of the oblast are
Samara (1,169,000), Tolyatti (719,000), Syzran (179,000), Novokuybyshevsk (108,000), Chapaevsk (73,000), Zhigulyovsk
(57,000), Otradny (48,000).
Main resources of the oblast are oil, natural gas, shale oil, and various mineral resources for building purposes, water resources.
The industry of the oblast is presented by 400 large and medium plants and over 4,000 small ones. Mostly developed are the
following industries: machine-building and metal working, fuel, power engineering, chemical and non-ferrous metallurgy.
Samara is an important transportation hub in Russia. The transport system in the oblast, located at the intersection of the
international transport corridor "North-South" and "East-West", provides links of federal and regional significance in all
directions. The main volume of traffic in the Samara oblast is by rail and road transport and passenger - on road and urban
electric transport. The oblast has two river ports. OJSC International airport Kurumoch is the largest in the Volga Federal
District, one of the ten leaders in Russia. Airlines connect Samara practically to all of regions and CIS capitals. Regular flights
are arranged to Prague, Frankfurt, Tel Aviv.50
47
Nizhny Novgorod Investors Guide, Ministry of investment policy of the Nizhny Novgorod region,
http://www.mininvest.ru/upload/doc/Путеводитель%20английский.pdf.
48
Vedomosti: Avtoevoluciya, October 2013, p.5.
49
Vedomosti: Avtoevoluciya, October 2013, p.5.
50
Samara Region in Figures, Ministry of Economic Development, Investment and Trade of the Samara Region,
http://economy.samregion.ru/en/region/facts_in_figures/
RUSSIAN CAR INDUSTRY
54
Automotive is one of the backbone industries of the Samara oblast. Samara oblast features the highest concentrations of
automobile industry organizations and the highest share of the automotive industry in the GRP structure of all subjects of the
Volga district. The automotive cluster of Samara oblast produces about 22% of the GRP, but it employs only 5% of total workers
in the economy of the area.51 The automotive industry in Samara oblast is mainly linked to the company AVTOVAZ the giant of
the Soviet and Russian auto-industry with a production capacity of about 1.2 million cars a year. AVTOVAZ cooperates with its
strategic partner Renault-Nissan and also assembles their cars in its factory in Togliatti (Samara oblast). Another important
project is the joint venture GM-AVTOVAZ, which plans to build new production lines for the new Chevrolet Niva.
In the automotive component segment the oblast has created a Special Economic Zone (SEZ), which focuses on automotive
component producers. Territorially the SEZ is located close to AVTOVAZ and should attract local and foreign car component
producers.
9.3. TATARSTAN
The Republic of Tatarstan is located in the center of a large industrial region of the Russian Federation at the crossing of
important highways connecting East and West, North and South of the country. The Republic covers an area of 68 thousand
square km, the total population amounts to 3,786,488 people.The largest cities are Kazan (1,143,535), Naberezhnye Chelny
(513,193) and Nizhnekamsk (234,044).
Tatarstan is one of the most economically developed regions in Russia. The industrial sector of the republic is presented by the
oil-gas-chemical complex (oil production, manufacturing of synthetic rubber, tyres, polyethylene, and wide range of oil refinery
products), major engineering enterprises manufacturing competitive products (heavy trucks, helicopters, aircrafts, aircraft
engines, compressors, oil-gas-pumping equipment, river and sea vessels, commercial and motor cars), development of electric
and radio instrument engineering. Tatarstan is rich in natural resources, powerful and diversified industry, and high
intellectual potential and qualified human resources.
The Republic of Tatarstan has a multibranch transport network including all types of land, air and water transport. It is situated
at the intersection of the main transport routes linking extracting districts of the Urals and Siberia, districts of manufacturing
industry in the center of the country and the southern agricultural zone. The air transport is represented by the three airports
“Kazan”, “Bugulma” and “Begizhevo”. There are 3 cargo ports with 5 cargo districts and 3 enterprises of industrial railway
transport in Tatarstan. Motor transport and road infrastructure play a big role as some parts of the republic are not well
connected to the railway network.52
The automotive industry in Tatarstan is organized around the big truck producer KAMAZ. The republic managed to attract
automotive producers with very advantageous conditions in the Technopark KIP-Master and the Special Economic Zone (SEZ)
Alabuga. A challenge for the region is the transport infrastructure, because the railway and road connections do already meet
the limits of capacity.
9.4. THE ULYANOVSK OBLAST
The Ulyanovsk oblast is located in the heart of the Middle Volga region, on both sides of the Volga. The geographical location
makes the region an attractive center for logistics and transport schemes of federal and international level. The oblast covers an
area of 37.2 thousand square km, the total population amount to 1,382,300 people. The largest cities and towns of the region
are Ulyanovsk (61,800 inhabitants) and Dmitrovgrad (128,000 inhabitants).
The economy is characterized by a high degree of industrial development: The manufacturing sector accounts for 21% of the
GRP. The main industry of the Ulyanovsk oblast is mechanical engineering (53.2% of the total production volume of
manufacturing sector). The main industries are aircraft construction, car engineering, machine tools production, heavy power
and transport engineering.53
51
Automotive Cluster, Invest in Samara: http://investinsamara.ru/en/samara_region/automotive_cluster/
Guide to Investment, Republic of Tatarstan, PwC 2013, http://tida.tatarstan.ru/eng/presentation.htm
53
The Ulyanovsk Region, Government of the Ulyanovsk Region, http://ulgov.com/about/
52
RUSSIAN CAR INDUSTRY
55
Ulyanovsk oblast is a large transport hub. The oblast is encompassed by air, train and vehicle routes to and from all places in
Russia, international airlines connecting the Volga region with Europe, Central Asia, the Middle East and China. Ulyanovsk has
two river ports on both banks of the River Volga. Ulyanovsk is the only city in the Volga Federal District with two A-class
airports. Ulyanovsk-Tsentralny and the international airport Ulyanovsk-Vostochny are equipped with state-of-the-art radioelectronic navigation systems which make it possible to receive all types of aircraft regardless of weight, including An-124
Ruslan and Boeing-747. The largest airlines in the region, Volga-Dnepr and Polet carry passengers and freight.54
Ulyanovsk oblast ranks 5th in Russia’s automotive industry. Manufacturers of the automotive cluster in the Ulyanovsk oblast
are presented by machine-tool constructing, instrument-making and automobile industry, and also by manufacturers of
automotive components.
Developed technologies:

Design of automobiles and auto-components

Instrumental and stamping production

Casting (ductile iron, steel, nonferrous metal)

Metal processing and mechanical assemblies

Heat treatment of details

Manufacture of plastic parts and rubber

Manufacture of electrical equipment and cords

Manufacture of cooling and heating systems55
9.5. SWOT-ANALYSIS VOLGA CLUSTER
Table 12: SWOT-Analysis Volga Cluster
Strengths
Weaknesses

Long-lasting tradition in automotive production

Administrative barriers

Solid industrial base (halls, machines, etc.)


Availability of qualified workforce
Possibly higher cost of operation in some specially designed
areas (SEZs, Technoparks)

Network of experienced service providers
(engineering, instrument production, R&D, etc.)

Decentralized structure of the cluster

Developing industrial parks

Developed logistics and transport infrastructure

Capacities of Russian OEMs

Ambition of local authorities to develop the
automotive cluster
Opportunities
Threats

SEZs in Tatarstan and Samara, Technoparks

Overload of the regional transport logistics

Switch of local OEMs to new quality standards

Possible changes in both federal and regional legislation

Lack of potential Russian partners with modern
technologies

Growth of competition from already localized producers and
Russian companies
9.6. COMPANY PROFILE OEMS
OAO «AVTOVAZ»
54
Regional Investment Climate, Development Corporation, Ulyanovsk Region, http://www.ulregion.com/en/invest/about_the_region/economy/
Investment offer on placement of production on the territory of the Ulyanovsk region, Government of the Ulyanovsk Region,
http://www.belgium.mid.ru/Ulaynovsk_presentation_on_CCBLR_NYR_26_01_2012.pdf
55
RUSSIAN CAR INDUSTRY
56
Contact data
445024 Samara region
Togliatti
Highway Ugnoe 36
Tel: +7 (8482) 73 80 09
Fax: +7 (8482) 73 82 21
Web: www.avtovaz.ru
Established in
1966
Number of
employees
2012 – 65,453 persons
Annual production
volume by models
Total – 552162 personal cars, including:
LADA Kalina – 119506 personal cars
LADA Priora – 148985 personal cars
LADA Granta – 121418 personal cars
LADA Largus – 16764 personal cars
Enterprise plans, that by December, 2013 the number of produced Nissan Almera models a month
will be increased to 3000 units.
(in 2012)
Localization rate by
models
Genuine Russian brand
Plans for future
Realization of the program for innovative development.
The major goal is the development and introduction of new models, including innovation,
technologies, design and production of low-cost vehicles, which provide sustainable competitive
advantages to Lada cars on the market of the Russian Federation and the countries of export.
Total production of personal cars to be more than 1,000,000 units per year as of 2017.
Foreign Suppliers
Faurecia
Eberspächer
ArcelorMittal
Manufactura Moderna de Metales
Business
opportunities for
Swiss suppliers
The company constantly works on the modernization of the models. Therefore, it is interested in
new state of the art components. Partner Renault is a reliable advisor concerning the introduction
of new technologies.
Contact person
Damir Kashapov, Deputy President for Supply
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
ZAO «GM – AVTOVAZ»
Contact data
445967 Samara region
Togliatti
Ul. Vokzalnaya 37
Tel: +7 (8482) 758-000
Fax: +7 (8482) 758-060
E-mail: cv-gmav@yandex.ru.
Web: http://gm-avtovaz.ru/
Established in
2001
Number of
employees
2012 – 1,600 persons
Annual production
2012 – 62,981 personal cars (Сhevrolet Niva brand)
RUSSIAN CAR INDUSTRY
57
volume by models
Localization rate by
models
Genuine Russian brand
Plans for future
Development and production of an updated version of Сhevrolet Niva.
Increase production capacity.
Foreign suppliers
For some models: Opel (engine), Bosch (ABS)
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Jeffrey Scott Glover, General Manager
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
OAO «KAMAZ»
Contact data
423827 Naberezhnye Chelny (Tatarstan)
Avtozavodski prospekt 2
Tel: +7 (8552) 45-27-45
E-mail: callcentre@kamaz.org
Web: www.kamaz.ru
Established in
1969
Number of
employees
52,000 persons
Annual production
volume by models
2012 – 51,000 trucks
Enterprise produces a wide range of vehicles: trucks (over 40 models, more than 1,500 kits, righthand vehicles), trailers, buses, tractors, engines, power units, and different tools.
Localization rate by
models
Genuine Russian brand
Plans for future
To remain the most important player in the markets of the CIS countries, to increase the market
share in the attractive markets of Eurasia, Africa and South America, positioning in the middle
price segment, development of integration with Daimler.
Foreign suppliers
Joint ventures with ZF, Cummins, Knorr-Bremse, Mogul Corporation, CNH Global NV,
Marcopolo and Liebherr.
Business
opportunities for
Swiss suppliers
The company intends to increase the quality of its products therefore it is constantly checking the
possibility of integrating foreign high quality components.
Contact person
Irek Gumerov, Deputy Director General of OJSC KAMAZ, Director of Development
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
OAO «PO ElAZ»
Contact data
RUSSIAN CAR INDUSTRY
58
423600, Alabuga
Prospect Neftynnikov 1
Tel: +7 (5557) 5-57-75,
Fax: +7 (5557) 5 57 -33
E-mail: kansgd@elaz.ru, fez_boss@elaz.ru
Web: www.elaz.ru
Established in
1985
Number of
employees
2011 – 2,101 persons
Annual production
volume by models
The enterprise is a famous producer of special machinery of the Russian Federation and CIS for
the oil and gas complex; wheel tractors, road-construction and municipal machinery, vehicle
components.
There is a Ford Sollers line at the factory, where in 2012 about 20,000 vehicles - LCVs Transit,
minivans S-Max and Galaxy as well as the crossovers Kuga and Explorer - are assembled
Localization rate by
models
Genuine Russian brand
Plans for future
Production of competitive stamping vehicles that meet the demands of consumers, both in quality
and in the organization of supply, development of new markets.
In 2014 the company starts with the assembling of construction machines of Cukurova Makina
Iмalat ve Ticaret. In the beginning the annual capacity is 300 vehicles. Later it should be
increased to 500-600.
Suppliers producing
in RF
n.a.
Business
opportunities for
Swiss suppliers
The company wants to increase the quality of its products, therefore it is constantly checking the
possibility of integrating foreign high quality components.
Contact person
Camille Salmanovich Galimov, General Manager
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
OAO Gruppa «GAZ» - OAO «Gorkovski Automobilnui zavod»
Contact data
603950 Nizhny Novgorod
prospekt Lenina 88
Tel: +7 (831) 299-09-90, 299-09-84,
Fax: +7 (831) 299-09-99
E-mail: UKGG@gaz.ru
Web: www.gaz.ru
Established in
1932
Number of
employees
About 25,000 in the whole GAZ Group
Annual production
volume by models
Enterprise produces light and medium-duty commercial vehicles, buses, passenger cars (only in
Nizhny Novgorod oblast).
Products of GAZ Group’s Gorky Automobile Plant – GAZelle NEXT, GAZelle BUSINESS and
Sobol, «Valdai» and GAZ-3309 medium-duty trucks, «Sadko» and «Zemlyak» off-road vehicle.
GAZelle NEXT, GAZelle BUSINESS and Sobol – more than 87,600 cars.
«Valdai» and GAZ-3309 medium-duty trucks, «Sadko» and «Zemlyak» off-road vehicle - more
than 16,400 cars.
Buses of small and middle class – more than 10,400 buses (small – 7,930, middle – 2,470 buses).
Joint ventures with Volkswagen, General Motors and Daimler.
Localization rate by
models
Genuine Russian brand
Plans for future
The company wants to defend its leading position in the market of Russian LCVs.
Foreign suppliers
Joint ventures with Bosal, Bulten, CLN SpA.
RUSSIAN CAR INDUSTRY
59
Business
opportunities for
Swiss suppliers
The company wants to increase the quality of its products therefore it is constantly checking the
possibility of integrating foreign high quality components.
Currently, GAZ uses machines of the Japanese company Komatsu.
The engine factory of GAZ, Yaroslavskiy Motorniy Zavod, uses equipment of Heller, Thyssen
Krupp Krause, Liebherr, JW Froehlich, Riko, Durr Ecoclean, Carl Zeiss.
Contact person
Alexander Moiseev, Director of Production System Development of GAZ Group
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
OOO «Obedinennaya avtomobilnaya gruppa» - OAO «Izhevski Automobilnui zavod»
Contact data
426060 Izhevsk
Ul. Avtozavodskaya 5
Tel: +7 (3412) 648-103,
Fax: +7 (3412) 464-161
E-mail: office@izhavto.ru
Web: http://www.izh-auto.ru
Established in
1966
Number of
employees
n.a.
Annual production
volume by models
2012 – 35,448 personal cars, all Lada models. Capacity volume 220,000.
Localization rate by
models
Genuine Russian brand
Plans for future
Increase of the volume of production to 350,000 personal cars.
Foreign suppliers
n.a.
Business
opportunities for
Swiss suppliers
Offers should be submitted to AVTOVAZ, the mother company of Obedinennaya avtomobilnaya
gruppa.
Contact person
Alexey Alexandrovich Alexeev, Director
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Ulyanovsky Avtomobilnyi Zavod (UAZ)
Contact data
432034 Ulyanovsk
Moskovskoe chaussee 92
Tel:+7 (8422) 40-91-09, +7 (8422) 40 90 40 + 7 (8422) 40 64 63+ 7(8422) 40 60 48
Fax:+7 (8422) 40-60-70
E-mail: d.malkov@uaz.ru
Web: www.uaz.ru
Established in
1941
Number of
employees
10,000 (in 2011)
Annual production
volume by models
Sales 2012
SUV: 29 129
Pickup: 3 639
LCV: 16 016
Microbus: 11 869
RUSSIAN CAR INDUSTRY
60
Localization rate by
models
Genuine Russian brand
Plans for future
The company wants to further develop its automobiles and to adapt them better to the needs of the
consumers. Mr. Kuzin informed that they are very interested in Swiss equipment.
Foreign suppliers
n.a.
Business
opportunities for
Swiss suppliers
The engineers are working on an optimization of the products and check the possibility of
integrating foreign components.
Contact person
Dmitry Kuzin, Leading Specialist of Autoparts‘ Development Group Preproduction Department
E-mail: dm.kuzin@sollers-auto.com
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Mercedes Trucks Vostok
Contact data
423800 Tatarstan
Naberezhye Chelny
Promzona
Proizvodstvennyi proesd 47
Tel: +7 (8552) 53-40-32, 53-40-33
E-mail: alexey.agibalov@daimler.com
Website : http://www.trucks.mercedes-benz.ru/
Assistant of Production Director
Regina Vasina
Tel: +7 (8552) 53 49 55 (ext. 6501, 6502)
E-mail: regina.vasina@daimler.com
Supply Department:
Darya Porfireva
Senior Productive Procurement Specialist
Tel: +7 495 797 53 70 (ext. 6532)
E-mail: darya.porfireva@daimler.com
Established in
2010
Number of
employees
About 300
Annual production
volume by models
About 3000 trucks in 2013, the production capacity has been increasing every year
Localization rate by
models
Localized production of seats and tires
Plans for future
The company is working on the modernization of the production and has to increase the purchase
of locally produced components. In 2018 the capacity of the plant is set to reach 10 000 trucks.
Suppliers
producing in RF
n.a.
Business
opportunities for
Swiss suppliers
The company works mainly with established suppliers, but has to increase the local supply.
Contact person
Axel Bense, Director of Production, Plant in Naberezhnye Chelny
RUSSIAN CAR INDUSTRY
61
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
BAW RUS
Contact data
432042 Ulyanovsk
Ul. Gerasimova 10, str. 1
Tel: +7 (8422) 34-91-02
E-mail: fenix@baw-fenix.ru
Web: http://www.baw-rus.ru
Established in
2011
Number of
employees
n.a.
Annual production
volume by models
3 truck models and 1 bus model
Localization rate by
models
n.a.
Plans for future
The company is willing to increase the purchase of locally produced components.
Suppliers
producing in RF
Avtodetal Service
Zavod Elektrom
Business
opportunities for
Swiss suppliers
The company is looking for suppliers producing in Russia.
Contact person
Sergey Shershukov, Director for Supply
Tel: +7 (8422) 34-91-11
E-mail: shershukov.sv@ams-holding.ru
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
Ford Sollers Elabuga
Contact data
423600 Tatarstan
Elabuga
SEZ Alabuga
Ul. Sh 2, kor. 1/1
Phone: +7 (85557) 7-68-00
Fax: +7 (85557) 7-68-00 (4098)
E-mail: info@sollers-auto.com
Website: www.sollers-auto.com
Established in
2012
Number of
employees
About 2,000, planned – 4,000
Annual production
volume by models
Currently 65,000 vehicles per year
6 models: Transit, Explorer, Kuga, S-Max, Galaxy, Turneo
Localization rate by
models
35% of all Ford cars produced in Russia. Once the engine and the die stamp factories in Alabuga
are opened the localization rate should be increased significantly.
Plans for future
Ford Sollers has plans to open another factory in Naberezhnye Chelny. The total production
capacity of the two plants in Tatarstan should be 200,000 cars a year as of 2017.
Suppliers
n.a.
RUSSIAN CAR INDUSTRY
62
producing in RF
Business
opportunities for
Swiss suppliers
Ford Sollers is actively looking for local suppliers. They plan to buy components from about 10
suppliers, mainly big components like plastic panels or bumpers
Contact person
Vladimir Kuzmitskiy, General Director
Source: Public sources, Dow Johns Factiva, Spark-Interfax agency
9.7. COMPANY PROFILES OES
ACOM
Contact data
445350 Zhigulevsk (Samara oblast)
Pr. Otvaghnui 22
Tel: +7 (8482) 31-64-00,
Fax (8482) 31-64-00
E-mail: desk@akom.su
Web: http://www.akom.ru/
Established in
2001
Number of
employees
2013 - 457 persons
Component
production
The company produces batteries.
Plans for future
The company would like to become supplier of more international OEMs.
Customers
AVTOVAZ
GM-AVTOVAZ
IZHAVTO
Ford
Sollers Isuzu
PAZ
GAZ
UAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Group President, Nikolai Mikhailovich Ignatiev
Source: Public sources, Spark-Interfax agency
Avtokompensator
Contact data
423800 Tatarstan
Naberezhnye Chelny
KIP MASTER
Tel: +7 (8552) 99-98-33
Fax: +7 (8552) 91-04-93
Mobile:+7 (960) 068-34-44
E-Mail: 40421@mail.ru
Established in
2010
Number of
n.a.
RUSSIAN CAR INDUSTRY
63
employees
Component
production
Expansion joints, metal hoses
Plans for future
The company has developed expansion joints for MAZ, VAZ and NEFAZ vehicles.
Customers
KAMAZ
Business
opportunities for
Swiss suppliers
Currently the company uses Korean machines for production.
Contact person
Kurbanov Sergei Nurmukhamedovich – General Director
Source: Public sources, Spark-Interfax agency
Avtocomponent
Contact data
603016 Nizhny Novgorod
Monastyrka str. 17а
Call-center
Tel: +7 (831) 255-60-35
Fax: +7 (831) 255-68-33
E-mail: info@autocomponent.info
http://www.autocomponent.info
Established in
1999
Number of
employees
1100
Component
production
Mirrors
Heaters, climate systems
Interior parts
External components
Instrument cluster
The company also produces construction materials.
Plans for future
The company spends a lot on R&D; currently 30 new products are in development.
Customers
GAZ, AVTOVAZ, Nissan, Renault, VW, Bosch Lear, Faurecia, Zanini, Valeo
Business
opportunities for
Swiss suppliers
For the engineering, the company works together with Toyota Engineering Corporation. It uses
equipment from Ficosa International, EDAG Engineering+ Design, Takata-Petri, Eisenmann,
Krauss- Maffei, Siebenwurst, Frimo, Blaupunkt. The company is open for new corporation
proposals.
Contact person
Maxim Shishin, Deputy Director for Strategic Planning
Source: Public sources, Spark-Interfax agency
RUSSIAN CAR INDUSTRY
64
Avtodetal - Service
Contact data
432049 Ulyanovsk
Ul. Pushkareva 25
Tel: +7 (8422) 24-04-44
Fax: +7 (8422) 24-04-67
Web: http://avtodetal.com
Established in
1944
Number of
employees
1700
Component
production
Clutches
Engines
Transmissions
Mountings
Brake systems
Steering systems
Plans for future
n.a.
Customers
UAZ, GAZ
Business
opportunities for
Swiss suppliers
The company uses equipment from the Swiss machine building enterprise Codere.
Contact person
Elvira Alimova, Director for Supply
Tel: +7 (8422) 24-04-41
E-mail: alimova.er@ams-holding.ru
Source: Public sources, Spark-Interfax agency
Avtotechnik
Contact data
423800 Tatarstan
Naberezhnye Chelny
Promyshlenno-Kommunalnaya zona promzona
Ul. Mashinostroitelnaya 93
Tel: +7 (855) 237 48 65, +7 (8552) 20-36-63
E-mail: reception@avtotehnik.com
Website: http://www.avtotehnik.com
Established in
1999
Number of
employees
400-1000
Component
production
Interior components
Plans for future
The company is currently in a restructurization process
Customers
KAMAZ
URALAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
RUSSIAN CAR INDUSTRY
65
Khaziev Ramzil Nurmukhametovich, General Director
Source: Public sources, Spark-Interfax agency
Avtotekhnika
Contact data
603037 Nizhny Novgorod
Ul. Travyanaya 6
Tel/fax: +7(831) 429-00-05 / 225-12-08, 27-93
E-mail: direct@uk-avt.ru
Web: www.uk-avt.ru
Established in
1999
Number of
employees
n.a.
Component
production
Interior trim elements
Plans for future
The company is constantly working on the optimization of the products and the increase of the
product portfolio
Customers
GM, GAZ PAZ MAZ, Ford
Business
opportunities for
Swiss suppliers
The company is interesting in partnership with foreign companies in order to increase the quality
of the products
Contact person
Svyatoslav Vladimirovich Castritskiy, General Director
Source: Public sources, Spark-Interfax agency
BBS
Contact data
445043 Togliatti
Ul. Severnaya, 39, structure 1
Tel: +7 (8482) 42-20-91
Fax: +7 (8482) 42-20-91 dob.4
E-mail: 422-091@mail.ru
Web: http://b2b-s.ru/
Established in
1997
Number of
employees
2013 - 31 person
Component
production
Plastic components
Plans for future
n.a.
Customers
AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
General Manager, Valery Alexsandrovich Butsaev
Source: Public sources, Spark-Interfax agency
RUSSIAN CAR INDUSTRY
66
CARDAN
Contact data
446010 Syzran (Samara oblast)
Ul. Gidroturbinaya 13
Tel: +7(8464) 37-25-18
Fax: +7 (8464) 37-25-18
E-mail: cardan-syzran@rambler.ru
Web: http://www.cardan-syzran.ru/
Established in
1998
Number of
employees
2013 – 450 persons
Components
production
Cardan shafts
Plans for future
n.a.
Customers
AVTOVAZ
GM-AVTOVAZ
IZHMASH
VIS
LUAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
General Director, Alexander Andreevich Podolinsky
Source: Public sources, Spark-Interfax agency
DAAZ
Contact data
33513 Dimitrovgrad (Ulyanovsk oblast)
Pr. Avtostroitelei, 78
Tel: +7 (84235) 5-17-76
Fax: +7 (84235) 5-30-77, 5-27-62,1-72-09
Web: http://www.daaz.ru/
Established in
1944
Number of
employees
n.a.
Component
production
Fuel system components
Body fixtures
Boosters
Ignition switches
Brake hoses
Plans for future
n.a.
Customers
GAZ,
GM-Avto
SeAZ
SAAZ
UMZ
Plastik
RUSSIAN CAR INDUSTRY
67
CSKB Progress
Kinelagroplast
VRT
BRT
AVTOVAZ
KAMAZ
IZHAVTO
Ural
etc.
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Victor Larenov, Director for Production
Tel: +7 (84235) 5-36-35
E-mail: vlavrenov@daaz.ru
Source: Public sources, Spark-Interfax agency
ELAZ
Contact data
423603 Tatarstan
Elabuga
Prospekt Neftyannikov 1
Tel: +7-800-700-16-25, + 7 (85557) 5-57-37
E-mail: kanzgd@elaz.ru
Web: www.elaz.ru
Established in
1984
Number of
employees
1200
Component
production
Production and assembling of metallic components
Plans for future
The company is constantly adapting and developing its product portfolio in order to meet the
various demands of the market.
Customers
KAMAZ, YAZDA
Business
opportunities for
Swiss suppliers
The company is looking for strong partners in order to increase the quality of its production.
Contact person
Kamil Salmanovich Galimov, General Director
The main activity of the company is the production of special vehicles and the assembling of
tractors.
Source: Public sources, Spark-Interfax agency
Elektropribor
Contact data
RUSSIAN CAR INDUSTRY
68
420061 Kazan
Ul. N. Ershova 20
Tel: +7 (843) 272-40-01
E-mail: elp@priborist.net
Web: http://www.priborist.net/
Established in
1917 (in Moscow)
Number of
employees
About 1000
Component
production
Speedometer transmitter
Harness for speedometer transmitters
Heater motor
Main activity: Production of components for the aerospace sector
Plans for future
The company is constantly adapting and developing its product portfolio in order to meet the
various demands of the market.
Customers
KAMAZ
Dmitrovgradskiy Zavod Radiatorov
Business
opportunities for
Swiss suppliers
The company is looking for strong partners in order to increase the quality of its production.
Contact person
Victor Zheltov, Production Director
Pavel Shatskikh, General Director
Source: Public sources, Spark-Interfax agency
EXEDY VIS RUS
Contact data
445015 Togliatti (Samara oblast)
Ul. Makarova 23
Tel: +7 (8482) 69-15-31,
Fax: +7 (8482) 69-15-15
E-mail: E.Rotman@exedy-vis.ru
Web: http://www.exedy-vis.ru/
Established in
2012
Number of
employees
2013 – 120 persons
Components
production
The company manufactures clutch disks.
Plans for future
n.a.
Customers
AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
General Director, Evgeniy Gennadievich Rotman
Source: Public sources, Spark-Interfax agency
RUSSIAN CAR INDUSTRY
69
Ford Sollers Engine Factory
Contact data
423800 Alabuga (Tatarstan)
SEZ Alabuga
Ul. Sh 2, kor. 1/1
Tel : +7 (85557) 7-68-00
Fax : +7 (85557) 7-68-00 (4098)
E-mail : postavka@ford.com
Web: www.sollers-auto.com
Established in
Planned to be opened end 2015
Number of
employees
n.a.
Component
production
Production capacity 105 000 engines a year with the possibility to be increased to 200 000.
First engine to be produced: 1,6 Duratec.
Plans for future
n.a.
Customers
Ford Sollers Russia
Business
opportunities for
Swiss suppliers
Ford Sollers will rely mainly on established relations. But as it has to reach a certain localization
rate, producers manufacturing in Russia have a big advantage.
Contact person
n.a.
Source: Public sources, Spark-Interfax agency
Ikar Ltd
Contact data
420034 Kazan
A/ya 88
Tel: +7 (8552) 52-71-99
E-mail: info@ikar-kazan.ru
Website: http://www.ikar-kazan.ru/
Established in
1995
Number of
employees
100-250
Component
production
Steeering wheels, interior components, instrument panels
Plans for future
The company is constantly adapting and developing its product portfolio in order to meet the
various demands of the market.
Customers
KAMAZ
ZMA
SEAZ
URALAZ
GIDROAPPARAT
POZIS
Sollers Elabuga
Sollers Naberezhnye Chelny
UAZ
PAZ
RUSSIAN CAR INDUSTRY
70
GAZ
Rostselmash
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Valery Naumov, Deputy Director General for Production
Tel: +7 (843) 562-01-02 ext. 330
E-mail: melnikov@riat.ru
Source: Public sources, Spark-Interfax agency
Kamatek
Contact data
423800 Tatarstan
Naberezhnye Chelny,
Promyshlenno-kommunalnaya zona promzona
Proezd Proizvodstvenny 45
Tel: +7 (962) 5791111
Tel: +7 (8552) 53-45-47,
Fax:+7 (8552) 53-47-46
E-mail: gd@kamatek.ru
Web: www.kamatek.ru
Established in
2011
Number of
employees
60-400
Component
production
Exterior SMC components
Plans for future
The company negotiates with the Chinese automotive producer SHANTUI in order to manufacture
components for them.
Customers
KAMAZ
Business
opportunities for
Swiss suppliers
The company is negotiating the purchase of press equipment, painting equipment and is going to
expand its production capacities. The company is working with fiberglass SMC.
Contact person
Ruslan Kamalov, General Director, E-mail: ruslan.kamalov@kamatek.ru
Yuriy Alexeevich Novikov, Deputy General Director, Production Director
E-mail: dp@kamatek.ru
Source: Public sources, Spark-Interfax agency
Kamskiy Zavod Tormoznoy Apperatury I Agregatov
Contact data
423800 Tatarstan
Naberezhnye Chelny
Proezd Lineiny d 22/25
Tel: +7(8552) 44-38-87; 44-38-81
E-mail: kzkaa1@yandex.ru
Web: www.kztaa16.ru
Established in
2007
Number of
500-1000
RUSSIAN CAR INDUSTRY
71
employees
Component
production
Brake systems
Plans for future
n.a.
Customers
KAMAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Proshin Andrei Vladimirovich, General Director
Source: Public sources, Spark-Interfax agency
Krista
Contact data
446010 Syzran (Samara oblast)
Ul. Dalnevostochnaya 38
Tel: +7 (8464) 37-19-60
E-mail: inform@kristagroup.com
Web: www.kristagoup.com
Established in
1994
Number of
employees
n.a.
Component
production
Interior and exterior plastic parts like bumpers, moldings, aerodynamic panels.
Production capacities in Syzran, Togliatti and St. Petersburg.
Plans for future
Customers
AVTOVAZ
GAZ
UAZ
IZHAVTO
KAMAZ
GM-Avtovaz
Ford
Negotiations with GM, Renault, Volkswagen
Business
opportunities for
Swiss suppliers
The company is constantly modernizing its production facilities. Currently it uses equipment of
Italian and German machine builders.
Contact person
Alexander Kostin, Deputy President for Production
Source: Public sources, Spark-Interfax agency
Lada – Polymer
Contact data
RUSSIAN CAR INDUSTRY
72
44500 Togliatti (Samara oblast)
Ul. Kommunalnaya, 33 "A"
Tel: + (8482) 99-92-02
Fax: +7 (8482) 99-92-02
E-mail: lada-polimer@mail.ru
Web: http://lada-polimer.ru/
Established in
2007
Number of
employees
2013 - 43 persons
Component
production
Water pumps with a sideways assembly
Washer tanks,
Expansion tanks
Washer pumps
Filters
Washer fluid reservoir
Plans for future
n.a.
Customers
AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Rais Anverovich Pseryaev, General Manager
Source: Public sources, Spark-Interfax agency
Leninogorskyi Mekhanicheskiy Zavod
Contact data
423250 Tatarstan
Leninogorsk
Ul. Bugulminskaya 23a
Tel/Fax: +7(85595) 9-24-94, 4-04-83
Web: http://www.ooolmz.ru
Established in
2004
Number of
employees
154
Component
production
Disks, brackets covers, pull rods, electric connectors, bolts, adapters, rings, gear sticks,
components for EURO-3 engines
Plans for future
The company is constantly adapting and developing its product portfolio in order to meet the
various demands of the market.
Customers
KAMAZ
Borisovskiy Zavod Avtogidrousilitel
Business
opportunities for
Swiss suppliers
The company is looking for strong partners in order to increase the quality of its production.
Contact person
Gulsina Nailevna Shashkova, Director for Development
E-mail: lenmz2.tat@yandex.ru
Tel: +7 (85595) 4-04-83
Source: Public sources, Spark-Interfax agency
Motor – SUPER
Contact data
RUSSIAN CAR INDUSTRY
73
445043 Togliatti (Samara oblast)
Ul. Borkowskaya, 11, str. 15,
Tel: +7 (8482) 75-84-81, 63-58-26
Fax: +7 (8482) 63-58-93
E-mail: mail@ms.motor-super.ru
E-mail: priemms@motor-super.ru
Web: www.motor-super.ru
Established in
1990
Number of
employees
2013 – 656 persons
Component
production
The company produces air filters, amplifiers, steering shafts, stabilizers, surges, pens, heaters etc.
Plans for future
The company is investing constantly in the modernization of the production facilities in order to
remain supplier of the conveyor of "AVTOVAZ", as well as the development of new products.
Customers
AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Dmitry Leonidovich Savenkov, Director
Contact person
Source: Public sources, Spark-Interfax agency
Nachalo
Contact data
423800 Tatarstan
Naberezhnye Chelny
Promyshlenno-Kommunalnaya zona promzona
Ul. 40 let Pobedy 25 office 17
Tel: +7 (8552) 77-83-18
E-mail: info@nachalo.com
Website: http://www.nachalo.com/
Established in
1994
Number of
employees
About 1000
Component
production
Body parts, clutches, brake pads, suspension elements
Plans for future
The company constantly works on the further development of its products and on new products for
the foreign car brands.
Customers
Most of the Russian car manufacturers
Business
opportunities for
Swiss suppliers
n.a.
Anatoly Gorozhankin, Director for Production
E-mail: anatoly.gorozhankin@nachalo.com
Source: Public sources, Spark-Interfax agency
Contact person
Nizhnekamskshina
Contact data
RUSSIAN CAR INDUSTRY
74
423580 Nizhnekamsk
Promzona
Tel: +7(8555) 49-79-30
Fax: +7 (8555) 24-15-70
E-mail: nksh@tatneft.ru
Web: shinakama.tatneft.ru
Established in
1968
Number of
employees
n.a.
Component
production
Tires
Plans for future
Remain the main Russian tire producer
Customers
Avtovaz, GAZ, VW
Business
opportunities for
Swiss suppliers
The company is looking for strong business partners in order to optimize the production.
Contact person
Zagit Foatovich Sharafeev, Director of OOO “UK “Tatneft-Neftekhim”,
Tel: +7 (8555) 49 73 42
Tel:/fax + 7 (8555) 24 12 31
E-mail: bokarevaAH@tnnh.tatneft.ru
Source: Public sources, Spark-Interfax agency
NPP Sotecks
Contact data
603095 Nizhny Novgorod
Shuvalovskiy proezd 5
Tel: +7 (831) 297 30 29
Fax: +7 (831) 298 04 37
E-mail: info@rms-sotex.ru
Web: www.rms-sotex.ru
Established in
1992
Number of
employees
500
Component
production
Polyurethane seats and seat back fillers
Plans for future
Increase the production capacity, widen the customer range.
Customers
Ford, Johnson Control, Renault PSMA, VW, GM-Avtovaz, GAZ, UAZ
Business
opportunities for
Swiss suppliers
Sotecks cooperates with Hennecke GmbH.
Contact person
Alexander Shalavin, Main engineer
Tel: + 7 (831) 298 04 11
Fax: +7 (831) 298 04 37
E-mail: aleksandr.shalavin@rms-sotex.ru
Source: Public sources, Spark-Interfax agency
RUSSIAN CAR INDUSTRY
75
Polad
Contact data
445944 Togliatti (Samara oblast)
Chaussee Ugnoe 105
Tel: +7 (8482) 70-15-00
Fax: +7 (8482) 70-15-00
E-mail: contactus@polad.ru
Web: www.polad.ru
Established in
1993
Number of
employees
2013 - 823 persons
Component
production
Stamping parts
Plastic parts
Plans for future
The company constantly works on the optimization of its products and production processes. It
has its own R&D department.
Customers
Renault Nissan
Ford
TRW Automotive
Bosch
Kiekert
MAZ
IZHAVTO
UAZ
AVTOVAZ
GM-AVTOVAZ
Benteler
Faurecia
Lear
GAZ
LIAZ
Business
opportunities for
Swiss suppliers
The company cooperates with Feintool AG, Lyss
Contact person
Sergey Yurevich Gospadarev, General Manager
Development Department: dr@polad.ru
Source: Public sources, Spark-Interfax agency
Proftermo
Contact data
423825 Tatarstan
Naberezhnye Chelny
Bsi promzona
Ul. Profilnaya 106
Tel: +7 (8552) 77-83-68, 77-80-72
E-mail: mail@proftermo.ru
Web: http://www.proftermo.ru
Established in
2002
Number of
About 50
RUSSIAN CAR INDUSTRY
76
employees
Service
Heat treating
Plans for future
n.a.
Customers
KAMAZ
AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Anatoli Ervinovich Tsveer, General Director
Contact person
Source: Public sources, Spark-Interfax agency
Riat
Contact data
423823 Republic of Tatarstan
Naberezhnye Chelny
Ul. Pushkin 4
Tel: +7 (8552) 52-71-99
Fax: +7 (8482) 75-90-02
E-mail: yana@riat.ru
Website: http://www.riat.ru/
Established in
1992
Number of
employees
2013 - 191 person
Component
production
Interior and exterior components of polymer and composite materials, seats
Plans for future
The company plans to further develop the automotive components division.
Customers
KAMAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Vladimir V. Melnikov, Deputy Director General, Director of Development
Tel: +7 (8552) 53-44-24,
E-mail: melnikov@riat.ru
Source: Public sources, Spark-Interfax agency
Rulevye Systemy
Contact data
445000 Togliatti
Ul. Severnaya 101
Tel: +7 (8482) 75-90-03
Fax: +7 (8482) 75-90-02
E-mail: mail@SteeringSystems.ru
Web: http://steeringsystems.ru/
Established in
2001
Number of
employees
2013 - 191 persons
Component
The company produces hydraulic steering boosters.
RUSSIAN CAR INDUSTRY
77
production
Plans for future
n.a.
Customers
AVTOVAZ, GM-AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Eugene Mihailovich Parhandeev, General Manager
Source: Public sources, Spark-Interfax agency
Samara avtozhgut
Contact data
443093 Samara
Ul. Dzerzhinskogo 11
Tel: +7 (846) 268-98-00, 207-09-70
Fax: +7 (846) 268-98-12
E-mail: levchenko@samjgut.com
Web: http://www.samjgut.com/
Established in
1947
Number of
employees
2013 – 466 persons
Component
production
Electrical equipment for engines and vehicles, parts and accessories for motor vehicles
Plans for future
n.a.
Customers
AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Alexander Konstantinovich Dorofeev, General Director
Source: Public sources, Spark-Interfax agency
Samarski podchibnikoviy zavod
Contact data
443009 Samara
Ul. Kalinina, 1
Tel: +7 (846) 995-01-86
Fax: +7 (846) 995-38-61
E-mail: sandryukovaa@spzgroup.ru
Web: www.spzgroup.ru
Established in
1942
Number of
employees
2013 – 2 218 persons
Component
production
Bearings
Plans for future
n.a.
Customers
KAMAZ, GAZ, AVTOVAZ, AMO ZIL, MAZ
RUSSIAN CAR INDUSTRY
78
Business
opportunities for
Swiss suppliers
n.a.
Contact person
General Manager, Aleksandr Anatolevich Seljev
Source: Public sources, Spark-Interfax agency
Sollers Shtamp
Contact data
423800 Tatarstan
Elabuga
SEZ Alabuga
Ul. Sh 2, kor. 1/1
Tel: +7 85557-5-19-84
Fax: +7 (85557) 7-68-00 (4098)
E-mail: postavka@ford.com
Web: www.sollers-auto.com
Established in
2009
Number of
employees
n.a.
Component
production
Production of mold-pressed and pipe line-up components for automobiles.
Plans for future
n.a.
Customers
Ford
Business
opportunities for
Swiss suppliers
Opportunities for machine builders, especially if they have had previous relations with Ford.
Contact person
Andrey Matyushin, General Director
Source: Public sources, Spark-Interfax agency
SZPI
Contact data
445140 Timofeevka, Stavropolski district (Samara oblast)
Ul. Obvodnaya, 3
Tel: +7 (8482) 20-77-84
Fax: +7 (8482) 20-77-79
E-mail: office@szpi.ru
Web: www.szpi.ru
Established in
2000
Number of
employees
2013 - 180 persons
Component
production
Plastic components of the interior
Brake blocks
Air filters
Etc.
Plans for future
n.a.
RUSSIAN CAR INDUSTRY
79
Customers
AVTOVAZ
GAZ
Business
opportunities for
Swiss suppliers
Offers of the suppliers to the company's management
Contact person
Natalya Petrovna Janchenko, Director
Source: Public sources, Spark-Interfax agency
Tekhnotron
Contact data
423800, Tatarstan
Naberezhnye Chelny
Promzona
Ul. Motornaya 38
Tel: +7 (855) 2202050, +7 (855) 2202051
Fax: +7 (855) 2202050
E-mail: market-tehnotron@mail.ru
Web: www.pktehnotron.ru
Established in
2002
Number of
employees
Around 1000
Component
production
Fan Propeller
Multi-cyclone air cleaner
Air intake
Air pipe
Trailor hitch
Magnet Clutch
Plans for future
The company is constantly adapting and developing its product portfolio in order to meet the
various demands of the market.
Customers
KAMAZ, Rosselmash, Eltekhsnab, Kamskiy Motornyi Zavod, Uraltrak, AZ Ural, YaMP,
Rostselmash, MAZ, MTZ, BELAZ.
Business
opportunities for
Swiss suppliers
The company is looking for strong partners in order to increase the quality of its production.
Contact person
Nuriev Marat Abuzarovich, General Director
Source: Public sources, Spark-Interfax agency
Tissan
Contact data
423800 Tatarstan
Naberezhnye Chelny
Ul. Dorozhnaya d 31
Tel: +7 (8552) 46 53 11
E-mail: info@tissan.ru
Web: http://www.tissan.ru/site/tissanllc
Established in
2003
RUSSIAN CAR INDUSTRY
80
Number of
employees
n.a.
Component
production
Single-layer polyamide tubes, single-layer and multi-layer fuel tubes, tubing formed with tips,
spiral pneumatic tubing, spiral electric cables, pulsator tubes, spiral tapes, fittings: nut, sleeve,
bush
Plans for future
The company is very ambitious; it wants to become the main supplier for plastic tubes in Russia.
Customers
KAMAZ, AVTOVAZ, GAZ Group, UTES, UAZ, Ford and Peugeot / Citroen have certified the
company as potential supplier.
Business
opportunities for
Swiss suppliers
The company is open for cooperation in order to improve its products. In the past it has
cooperated for instance with French experts in order to implemente the newest technologies in
its production.
Contact person
Eduard Islamov, General Director
Source: Public sources, Spark-Interfax agency
Togliatti Komplekt Avto
Contact data
445043 Togliatti,
Ul. Kommunalnaya, 40, structure 14
Tel: +7 (8482) 70-40-50,
Fax: +7 (8482) 70-39-90
E-mail: tka@tlt.ru
Web: http://tka63.ru/
Established in
2002
Number of
employees
2013 - 115 persons
Component
production
The company manufactures heaters, air filters, radiators, thermostats.
Plans for future
n.a.
Customers
AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Taslim Orudzh Oglu Osmanov, General Manager
Source: Public sources, Spark-Interfax agency
TPV RUS
Contact data
445143 Podstepki (Samara oblast)
Ul. Proizvodstvennaya 8
Tel: +7 (8482) 53-90-07
Fax: +7 (8482) 53-90-33
E-mail: tpvrus@krigstagroup.com
Web: http://tpvrus.com/
Established in
2007
Number of
2013 - 657 persons
RUSSIAN CAR INDUSTRY
81
employees
Component
production
Seats
Plans for future
Release of the new level of quality components for new models of "AVTOVAZ".
Customers
AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Maksim Vladimirovich Simonov, General Manager
Source: Public sources, Spark-Interfax agency
TZTO
Contact data
445611 Togliatti (Samara oblast)
Ul. Industrialnaya 9
Tel: +7 (8482) 27-03-43
Fax : +7 (8482) 03-27-61
E-mail: Sharonova@tzto.com.ru
Web: http://www.tzto.ru/
Established in
1964
Number of
employees
2013 – 1,940 persons
Component
production
More than 2,000 stamping components, mostly small components.
Plans for future
Production of competitive stamping details that meet the demands of consumers, both in quality
and in the organization of supply, development of new markets.
Customers
AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Vladimir Alexandrovich Inkin, General Manager
Source: Public sources, Spark-Interfax agency
Ulyanovskiy Motorniy Zavod
Contact data
432006 Ulyanovsk
Ul. Lokomotivnaya 17
E-mail: gendir@volgamotors.com
Web: http://www.umz-gaz.ru/
Established in
1944
Number of
employees
n.a.
Component
production
Engines
RUSSIAN CAR INDUSTRY
82
Plans for future
n.a.
Customers
GAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Dmitriy Shchukin, Director for Development
Tel: +7 (8422) 79-64-29
E-mail: d.schukin@volgamotors.com
Source: Public sources, Spark-Interfax agency
Upravlenie maloi mechanizaci
Contact data
445934 Togliatti (Samara oblast)
Ul. Severnaya, 26
Tel: +7 (8482) 62-62-00,
Fax: +7 (8482) 69-61-80
E-mail: priemnaya_umm@mail.ru
Web: http://zaoumm.ru/
Established in
1973
Number of
employees
2013 - 186 persons
Component
production
The company produces connectors, panels, rod lever, amplifiers, panels, etc.
Plans for future
n.a.
Customers
AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Vladislav Nikolaevich Kaplin, General Manager
Source: Public sources, Spark-Interfax agency
Utes
Contact data
432071 Ulyanovsk
Ul. Krymova 14
Tel: +7(8422) 42-17-52
E-mail: info@utyos.ru
Web: http://www.utyos.ru
Established in
1941
Number of
employees
n.a.
Component
production
Electronic fuel pumps
Foot pumps
Connectors for the fuel system
Plans for future
The company is currently developing an electric power steering system for AVTOVAZ
RUSSIAN CAR INDUSTRY
83
Customers
UAZ
GAZ
AVTOVAZ
IZhAvto
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Alexander, Kornilin, Director for Automotive Production
Tel: +7 (8422) 41-81-46
E-mail: info@utyos.ru
Source: Public sources, Spark-Interfax agency
VAZINTERSERVICE
Contact data
445015 Togliatti,
Ul. Makarova, 23
Tel: +7 (8482) 69-15-31,
Fax: +7 (8482) 69-15-15
E-mail: E.Rotman@exedy-vis.ru
Web: http://exedy-vis.ru/
Established in
1991
Number of
employees
2013 – 1,226 persons
Component
production
The company produces brake pads, kits, rods, brackets steering shaft, clutch disks and diesel fuel.
Plans for future
The company invests in its production facilities in order to be a system supplier of automotive
components, supplied to both domestic cars, and foreign cars producers in Russia.
Customers
AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Evgeny Gennadievich Rotman, General Manager
Source: Public sources, Spark-Interfax agency
Volzhski machinostroitelnui zavod
Contact data
445024 Togliatti (Samara oblast)
Ul. Severnaya, д.111
Tel: +7(8482) 73-66-00,
Fax: +7 (8482) 73-66-22
E-mail: PTO@vaz.ru
Web: http://www.vmztlt.ru/
Established in
1972
Number of
employees
2013 – 878 persons
Component
production
Automotive wiring harnesses
Stamping-welded products
RUSSIAN CAR INDUSTRY
84
Plastic products
Plans for future
n.a.
Customers
AVTOVAZ
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Vladimir Valerievich Silver, General Director
Source: Public sources, Spark-Interfax agency
Zavod Mashdetal
Contact data
423800 Tatarstan
Naberezhnye Chelny
Promashlenno-kommunalnaya zona
Remontniy proezd 57.
Tel : +7 (8552) 37-21-99, (8552) 37-25-84
E-mail: zmd2000@mail.ru
Web: http://www.mashdetal.com
Established in
2003
Number of
employees
60-400 persons
Component
production
Brake blocks, rings, pivots
Plans for future
n.a.
Customers
KAMAZ, Knorr Bremse
Business
opportunities for
Swiss suppliers
n.a.
Contact person
Rashit Shakirovich Minnebaev, General Director
Source: Public sources, Spark-Interfax agency
Zavolzhskii Motor Plant
Contact data
606522 Nizhny Novgorod region
Zavolshye
Sovetskaya str. 1a
Tel: +7 (83161) 67218, +7 (83161) 66270
Fax: +7 (83161) 37242,
E-mail: zmz@zmz.ru
Web: www.zmz.ru
Established in
1958
Number of
employees
n.a.
Component
production volume
by components
Aluminum brackets, engines
Recently ZMZ started an output of prototype batches for «Euro-4» engines.
Plans for future
The company continues to develop its basic product line of engines and automotive components:
RUSSIAN CAR INDUSTRY
85
- with expansion of traditional model range - diesel, gas & petrol versions,
- with expansion of range of automotive components under orders of foreign companies.
Customers
Ford, UAZ, GAZ, PAZ, KAMAZ, Knorr Bremse
Business
opportunities for
Swiss suppliers
The company is interested in a partnership with foreign companies in order to increase the
quality of the products
Contact person
Andrey Matzushin, General Director
Source: Public sources, Spark-Interfax agency
List of other OES in the Volga Region
OES (country)
Location
Key products
Clients
Project implementation stages
Behr
Naberezhnye
Chelny
Cooling modules
KAMAZ
Opened in 2012
Kiekert
Naberezhnye
Chelny
Side door latches
Latch modules
Rear compartments
Latches
Mini actuators
Strikers
Russian and
international
automotive
OEMs
Opening planned for the end 2013
Automotive
Glass Alliance
Rus
Alabuga
Automobile glass
Lear Ltd
Nizhny
Novgorod
Seats
PSMA
Opening 2009
Magna
Technoplast
Nizhny
Novgorod
Bumpers, mirror lines,
sills, window lifters, rear
door linings
Nissan
Factory bought by Magna in 2008
Leoni Wiring
Systems Rus
Gorodets
Harnesses
PSMA
Opening 2012
Valeo
Nizhny
Novgorod oblast
Rear lamps, locks
PSMA
2011
Bor Glass Plant
(AGC Glass)
Nizhny
Novgorod
Automotive glass
Ford, Avtovaz,
Nissan, GAZ,
PAZ, VAZ,
KAMAZ
D Plast Eftec
Nizhny
Novgorod
Wax
Renault,
Avtovas
2002
Saar Gummi
Russland
Nizhny
Novgorod
Rubbers
Ford
2007
KMZ Trading
House
Alabuga
Welding components
Design state
NTC MSP
Alabuga
Exhaust gases cleaning
systems
Design state
Takata
Ulyanovsk
Belts
Opening 2013
RUSSIAN CAR INDUSTRY
86
Under construction
Steering wheels
Airbags
Coskunoz
Alabuga
Car body parts
Ford
Under construc-tion
Alabuga
Sources: Spark-Interfax agency, AUTOSTAT agency, Dow Johns Factiva, public sources
9.8. SUPPORT MEASURES OF THE NIZHNY NOVGOROD GOVERNMENT
In Nizhny Novgorod oblast there is a law “On State Support to Investment Activities” in force, which provides for measures of
state support to investors implementing priority investment projects in the oblast.
Such investors can enjoy financial assistance, including tax preferences and reimbursement of a part of the loan interest rate.
The benefits refer to profits tax and property tax to the extent payable to the regional budget. The benefit on profits tax payable
to the oblast’s consolidated budget pursuant to the federal fiscal legislation depends on the ratio of sales generated by the
implemented priority investment project to company’s total sales as specified below:
Table 13: Profit Tax Reduction Nizhny Novgorod
Sales generated by project
as percentage of total sales
2–10%
11–15%
16–20%
21–30%
31–40%
41–50%
51–60%
61–70%
71–80%
over 81%
Profit tax reduction
1,0%
1,5%
2,0%
2,25%
2,5%
3,0%
3,25%
3,5%
4,0%
4,5%
If a business has standalone divisions located outside Nizhny Novgorod oblast, the calculated sales volume will not account for
the performance of such divisions.
If a business is entitled to a reduced profits tax rate under different enactments, the total reduction in the rate of the profit tax
payable to the oblast budget cannot exceed 4.5 per cent.
An investor can be exempt from the corporate property tax to the extent payable to the regional budget, if the property was
created, purchased, or used to implement a priority investment project. The list of such property shall be agreed with and
approved by the province’s Ministry of Investment Policy.
Tax benefits afforded to investors are only valid within the project’s payback period and not longer than five years from the date
stipulated by the investment agreement, but not before a regional law confirming the agreement becomes effective. An investor
can, at its own discretion, determine the start date for tax benefits; that date can differ from the day on which the enactment
enters into force.
The House of Assembly upon the regional Government’s recommendation may, on an exceptional basis, decide to extend to a
maximum of 2 years the validity of tax benefits of an investor implementing an industrial or infrastructure project in Nizhny
Novgorod oblast, including transportation infrastructure, with a payback period exceeding five years.
Investors implementing a project in Nizhny Novgorod oblast can be exempt (during the validity of the investment agreement)
from paying rent for lands used for investment purposes to the extent payable to the regional budget.
Investors implementing their projects on a loan basis can be refunded the interest on their borrowings.
RUSSIAN CAR INDUSTRY
87
A part of the interest paid for bank loans is refunded by the regional budget through a transfer to the investor of budgetary
funds amounting to a half of the interest accrued pursuant to the loan agreement, but not more than a half of the interest
accrued at the RF Central Bank discount rate in force at the date of the loan agreement.
The total amount of benefits afforded to an investor cannot exceed the funds invested in this particular investment project.
All official procedures of interaction of an investor with the authorities which are related to launch and implementation of an
investment project are set forth in regional statutory acts. These are the following procedures:

Submission of the application to implement an investment project;

Provision of a land site to implement an investment project;

Granting a priority status.
To get the documents required to start construction, an investor shall interact with one authority only, that is the regional
Ministry of Investments.
Thanks to the new system, the time required to get a land site for the investment project is reduced (to only 104 days).
All decisions on investment projects are considered without delay by the Investment Council, headed by the Governor of Nizhny
Novgorod region.
At the moment there are 77 projects with a priority status granted, which equal 360 billion rubles worth of investments.
The Nizhny Novgorod Government – taking in consideration branch priorities, key advantages and problems of the region has
decided to establish the Nizhny Novgorod oblast’s Automotive and Petrochemical Industrial Innovation Cluster. Governor
Valeriy Shancev even announced recently that the establishment of the automotive cluster is the main pillar of the industrial
development strategy in his region.
The development of the automotive cluster should allow integrating innovation, industrial production, and modern project
systems in order to establish an effective production process. The localization of the production of automotive components
should primarily serve the OEMs in Russia, but also those abroad. The target of the region is to become the leader in the
automobile industry and motor components production in Russia.
The cluster is located at the crossroads of the most important logistics routes: M7 Volga federal motorway, Gorky Railway
junction and the Volga and Oka confluence can provide access of the manufactured good to all the largest Russian markets.
Among anchor tenants of the cluster there are GAZ Avtozavod and SIBUR.
In 2013 and 2014 two more companies are to become part of the cluster as Volkswagen and GAZ Avtozavod joint project will
reach its designed capacity and RusVinyl, a JV of SIBUR and Solvin, PVC plant will be commissioned (to manufacture 330
thousand tons of PVC a year, the output to be potentially increased to 500 thousand tons).
The cluster builds cooperation networks among 70 industries, 16 universities and vocational colleges, 6 R&D centers as well as
lots of engineering, commercial and servicing organizations and transport, power, utilities and social infrastructure facilities.
There are four industrial sites defined to develop the cluster: two of them have the essential infrastructure and are located on
the Caprolaktam area (300 hectares) and GAZ area (54 hectares). The other two are underdeveloped and located in DzerzhinskVostochny (Eastern) industrial park and near Doskino (total area of 660 hectares) next to the anchor residents.
In addition to the cluster industrial sites, technoparks can also be a location for the production of automotive components. For
instance the Dzerzhinsk-Vostochny (Eastern) industrial park (403 hectares), where the French company A. Raymond will
produce automotive components.
There is a draft law On Industrial Parks in Nizhny Novgorod Oblast which aims to set up areas with engineering, transport and
telecommunications infrastructure provided to host industrial and other enterprises and develop industrial cooperation among
them.
RUSSIAN CAR INDUSTRY
88
9.9. SUPPORT MEASURES OF THE SAMARA GOVERNMENT
The government of Samara has made efforts to create a comfortable investment climate. Businessmen can count on support
from the side of the administration in every step of their investment projects.
For investors implementing investment projects in Samara oblast of RUR 650 million or more the government recommends a
conclusion of the investment memorandum and appointment of the supervisor, which will allow the authorities to provide
information aid, consulting, assistance in selection of areas and land sites.
Financial benefits for investors include:
Table 14: Financial Benefits for Investors Samara
Name of state support measure
Exemption from property tax
Support volumes (financing, interest
rates, the amount of benefits, etc.)
Rate - 0%.
For up to 100 million RUR of the cost
of the investment project. Benefit
period - 2 years;
for 100 to 500 million RUR - 4 years;
for 500 million RUR and above - 5
years.
Terms and Conditions
The benefits apply to the property created or
acquired in the course of implementing the
investment projects or intended for its
implementation, starting from the month when
the property was accounted as a fixed asset.
Provided upon submission of the written
application by the taxpayer to the tax authority
with the attached business plan approved by the
Ministry of Economic Development,
Investments and Trade of Samara Region.
Reduced interest rate on the income The regional rate - 13.5%.
The privilege applies to profits from the sale of
tax payable to the regional budget
For 100 to 500 million RUR of the cost goods (works, services) as a result of the
of the investment project, benefits
implementation of the investment project, from
period the beginning of the reference period in which
4 tax periods, for 500 million RUR the income from the investment of the project
and above - 5 tax periods.
was retrieved, determined according to tax
records.
Provided upon submission of the written
application by the taxpayer to the tax authority
with the attached business plan approved by the
Ministry of Economic Development,
Investments and Trade of Samara Region.
RUSSIAN CAR INDUSTRY
89
Subsidies to cover costs incurred as
part of the implementation of
investment projects
Subsidies in the form of
The legal act regulating procedure and
reimbursement of the expenses
conditions for granting the subsidies has been
incurred by investors while
developed and is currently awaiting approval
implementing the investment projects:
a) To perform work related to
connecting energy consuming devices
of the engineering infrastructure of
SEZ (allows 102 million RUR for 20132018, including: 12 million RUR in
2013, 14 million RUR in 2014);
b) In the course of implementation of
investment projects for the works,
related to connection to power supply
sources (110 million RUR for 20132018, including: 10 million RUR in
2013, 15 million RUR in 2014);
c) To equip industrial sites with
objects of engineering infrastructure
(500 million RUR for 2013-2018,
including: 50 million RUR in 2013, 50
million RUR in 2014).
The state guarantees of Samara oblast According to the Law of Samara
for the return of borrowed funds
oblast of 13.12.2012 # 129-DG "On the
attracted for investment activities
regional budget for 2013 and the
planning period of 2014 and 2015"
The state guarantees of Samara oblast, which
ensure proper execution of all obligations by the
borrower to the creditor arising from the
implementation
of
investment
projects,
provided on a competitive basis, under
condition that period for repayment of borrowed
funds does not exceed seven years
The Samara government has established a Development Strategy to 2020 according to which JSC "AVTOVAZ” should undergo
a large-scale modernization of production, implement a program to improve product quality and introduce new models. By
2017, production is projected to reach one million vehicles per year (2700 cars per day).
The government also thinks about creating an industry for recycling cars, as Samara is one of the cities with most cars per
capita in Russia (about 240 cars per 1000 inhabitants).
The Special Economic Zone (hereinafter - SEZ) for production "Togliatti" is the most important investment project in the
Samara region. It was created in the municipal district of Stavropol near the production site "AVTOVAZ" on a plot of 660 ha. In
2015 the construction of the infrastructure will be finalized. Developed industrial infrastructure will provide savings in capital
costs for the investor of up to 30%. The proximity of railways, roads, port and airport Togliatti "Kurumoch" will facilitate the
transportation and logistical issues.
The SEZ special regime of entrepreneurial activity provides investors with exceptional conditions for the establishment and
development of business in Russia. Landholder, the owners of the plants are given the right to buy in the future the land on
which their plants are located.
Investors will be offered all types of communication infrastructure for the organization of the production process, industrial,
warehouse and office space within the SEZ "Togliatti". Connection to all types of energy resources is free.
The SEZ should be an effective system of public administration, to ensure maximum comfort for business interaction with the
state and municipal authorities and regulators. The system of "single window" to speed up the process of registration of
residents, to reduce administrative barriers, while providing investors with a single point of contact for all dealings with the
state.
To obtain the status of a SEZ "Togliatti” resident, the minimum investment shall be 3 million Euro.
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For the first 5 years of the SEZ, residents are exempt from land and transport taxes. Property tax will not be charged for the first
10 years.
Income tax rate will be credited to the budget of the Samara region, for the residents of the SEZ "Togliatti" reduced to 0% and
will be valid until the end of 2018, followed by a gradual increase. Investors enjoy additional tax benefits on profits: accelerated
procedure for recognizing development costs and accelerated depreciation.
The SEZ "Togliatti" is already in a regime of free customs zone. It allows investors to avoid overpayments related to the
importing of equipment, resources and materials and export of finished products.
Foreign goods imported into the territory of SEZ "Togliatti" (equipment, raw materials, components, construction materials)
are placed and used without payment of customs duties and taxes, and without application of non-tariff regulation. Customs
union shall be placed under the customs procedure of customs-free zone without paying export duties, and without application
of the prohibitions and restrictions.
Table 15: State Support for SEZ Residents Samara
№
Mechanisms of
the state support
Forms of state support
Conditions
0% – until the end of 2018
3% – for the period from 01.01.2019 to
31.12.2020
Reduced rate of corporate income tax payable to the
regional budget
7% – for the period from 01.01.2021 to
31.12.2022
10% – for the period from 01.01.2023
to 31.12.2024
1
2
13,5% – for the period from
01.01.2025 onwards
Tax benefits
Additional profit
tax benefits
Exemption from property tax
for 10 years from the month following
the month of registration of the
property created or acquired for doing
business in the SEZ
Exemption from payment of vehicle tax
for five years from the date of
registration of the vehicle used for the
operation of the SEZ
Accelerated procedure for the recognition of R & D
(research costs and development activities are
recognized in the accounting (tax) period in which
they were produced, the amount of actual costs)
available for the entire period of SEZ
Accelerated depreciation (special rate does not apply
to fixed assets related to 1-3 depreciation groups in
relation to its depreciable fixed assets)
3
Customs benefits
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Exemption from payment of value added tax and
customs duties
is granted for the duration of SEZ
9.10. SUPPORT MEASURES OF THE TATARSTAN GOVERNMENT
Tatarstan is ranked sixth in Russia when it comes to general investment volume in the main capital. Tatarstan has managed to
continually increase its investment potential rating during the last couple of years. This increase was influenced by the
establishment of investor-friendly regulatory environment, stable economic growth and high political stability. The main
regulations and rights of investors are described in law 1872 On the Investment Activity in the Republic of Tatarstan.
The law stipulates the form and methods of the investment activity state regulation including

Beneficial conditions of land use and other natural resources

Granting of state guaranties (by tender)

Distribution of funding of investment projects (by tender)

Provision of credits

Development, approval and funding of investment programs

Benefits of regional taxes and charges
Under Tatarstan law, investors carrying out investment projects in Tatarstan receive tax benefits for the payback period of the
investment project, which cannot exceed seven years (13 years for investments in heavy engineering) after the project began.
Table 16: Tax Benefits Tatarstan
Current rate
20%
2.2%
1.5%
* Given a relevant resolution by a municipal council
Beneficial rate
Profits tax
15.5%
Property tax
0.1%
Land tax
0%*
Machinery and automotive parts is one of the priority sectors for investment in Tatarstan. It includes metallurgical production
and production of finished metals, machinery and equipment production, production of electronics, electrical and optical
equipment, and production of transport vehicles and equipment.
The Tatarstan Investment Development Agency (TIDA) was founded in 2011 to help promote investment into Tatarstan and
facilitate and support investors entering the region. TIDA operates as a “one stop shop” for all investors and investment projects
and has already shown a clear ambition to become the leader among such agencies in Russia.
In order to ease the set-up of production facilities in Tatarstan, the authorities decided to create a large network of industrial
and technological parks which provide the infrastructure for the construction of plants. At present there are 1 Special Economic
Zone (SEZ), 5 techno-parks, 3 technological parks, 2 industrial parks, 1 technopolis and 7 business incubators operating in
Tatarstan. We will present now the ones which are especially interesting with respect to the automotive industry.
The Special Economic Zone Alabuga was created in 2006, it provides investors with completely prepared industrial,
engineering, transport and customs infrastructure as well as with a number of tax and customs preferences. Among the
residents are world known business companies like Ford-Sollers, Saint-Gobain, Air Liquide, Rockwool, Sisecam, Hayat Group
etc.
Automotive companies in Alabuga
OOO Ford Sollers Yelabuga (the factory is operating)
Production of commercial motorcars and off-road vehicles, Ford gasoline engines
OOO Sollers-shtamp (the factory is at the design stage)
Production of mold-pressed and pipe line-up components for automobiles
ZAO Automativ Glass Aliance Rus (under construction)
RUSSIAN CAR INDUSTRY
92
Automobile glass production
OOO KMZ Trading House (the factory is at the design stage)
Production of mold-pressed and assembly welding components
OOO Alabuga-motors (the factory is at the design stage)
Electric bus production
OOO EcoTechnologies Alabuga (the factory is at the design stage)
Reprocessing of worn tires into rubber crumb
OOO NTC MSP (the factory is at the design stage)
Production of exhaust gases cleaning systems for automobiles
«Coskunoz-Аlabuga» (under construction)
Production of car body parts
There are favorable property tax rates for residents. Concerning the federal tax they comprise
2% — the first 5 years, 7% — the following 5 years, 15,5% — till 2055. Taxpayers may also use an accelerated depreciation
schedule with a coefficient not exceeding 2. Property, land and transport tax equals 0% since tax base appearance
Residents are to keep separate records of income and expenses during production activity in the SEZ territory and outside of it
to receive tax benefits. Tax vacation begins with the appearance of tax base .
An investor according to the federal legislation has the right for free import of raw materials, equipment and components to the
SEZ Alabuga territory. Free customs zone regime working in the SEZ Alabuga territory makes it possible to import goods
without payment of customs duty and VAT.
The procedure of a free customs zone was started up on the SEZ first construction stage in April 2008. From 2012 the free
customs zone regime began operating in the whole Alabuga territory. The customs terminal with an area of 28 hectares and
equipped with the most modern equipment makes it possible to expedite the customs clearance procedure.
Foreign equipment, raw materials, components and construction materials are not subject to import custom duties and VAT
due to free customs zone regime.
Companies, which have received the SEZ resident status till 2012 may export ready production made from foreign goods and
acknowledged to be goods of the customs union from the SEZ territory to the countries of the Customs Union (Russia, Belarus,
Kazakhstan) without custom duties and VAT payment.
Unlike Moscow and region where connection cost to electric power costs 1 million dollars the connection at the SEZ Alabuga is
free.
Rent cost of 1 hectare ground averages 900 USD, while purchase cost is 1100 USD.
The total investment volume into the projects in the territory of the SEZ Alabuga is more than 2.5 billion USD. Federal and
regional authorities invested more than 15.5 billion RUR into the Special Economic Zone Alabuga infrastructure development.
The KAMA Industrial Park (KIP Master) was founded in 2004 by the government of Tatarstan and OJSC KAMAZ. KIP Master
focuses on machine building and hosts small- and middle-sized companies producing car components. The modern production
facilities is comprised of 107,000 sq. meters of administration and 31,000 sq. meters of utility areas. KIP Master offers
relatively low rent costs, a logistics terminal, rent vacation in the beginning, status of privileged partners for OJSC KAMAZ,
beneficiary rights to government grants of Tatarstan, additional services as accountancy, customs, banking etc. 136 enterprises
operate on the territory of KIP Master, including 37 enterprises working with KAMAZ.
At the current stage, the construction of the huge project “Innopolis Innovation Centre” has started. It is a new city specializing
in information technologies where the potential population is expected to reach 150,000 people. Furthermore, the creation of
Kazan Smart City, a new urban development that will help advance high technology, medicine, education, and tourism, will help
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93
boost the republic’s potential for innovation-oriented development. Kazan Smart City will foster sources of growth for the entire
region, establishing Kazan as an international business hub.
9.11. SUPPORT MEASURES OF THE ULYANOVSK GOVERNMENT
One of the main goals of the Government of the Ulyanovsk oblast is to create favorable conditions for business development.
Any company, which qualifies for the relevant legislative acts can take advantage of regional initiatives aimed at support for
investors in Russia.
In order to support investors in Russia, the Ulyanovsk oblast has developed advanced legislative and regulatory framework,
which provides tax benefits for investors. It allows the companies to localize production in the Ulyanovsk oblast and to receive
specific incentives and subsidies defined by the Law of the Ulyanovsk oblast from 26.11.2003 № 060-ZO On Corporate
Property Tax on the Territory of the Ulyanovsk Oblast, the Law of the Ulyanovsk oblast from 04.06.2007 № 71-ZO On the
Reduction of tax Rate on Corporate Profit Tax for Certain Categories of Taxpayers, the Law of the Ulyanovsk oblast from
06.12.2007 № 130-ZO On Transport Tax in the Ulyanovsk Oblast, decree of the Government of the Ulyanovsk oblast from
01.12.2010 № 418-P On Some Measures for the Implementation of the Law of the Ulyanovsk Oblast and the decree from
15.03.2005 № 019-ZO On the Development of Investment Activity on the Territory of the Ulyanovsk Oblast.
Tax benefits:

13.5 % tax rate for the corporate profit tax in the part to be paid to the regional budget for 15 years from the moment of
occurrence of the taxable base (a reduction by 4.5%)

0% tax rate for the corporate property tax for 10 years from the moment of occurrence of the taxable base

1,1% tax rate for the corporate property tax from 11th till 15th years from the moment of occurrence of the taxable base

0% tax rate for the land tax for 8 years from the moment of occurrence of the taxable base

0% tax rate for the transport tax for 10 years from the moment of occurrence of the taxable base
Within the first 10 years of investment project implementation the investor is provided with a system of subsidies on costs
incurred within the implementation of the investment project. The companies which implement especially significant
investment projects on the territory of the Ulyanovsk oblast within a period of 10 years from the moment of occurrence of the
taxable base will get reimbursement of the costs paid to the regional budget on corporate profit tax.
Such initiative providing tax incentives for investment in Russia means that within the first 10 years of the project
implementation the investor in fact will not pay any taxes to the regional budget. The funds received by the investor in the form
of subsidies may be used for the payment of any investment expenses.
There are two industrial parks in the Ulyanovsk oblast, which focus on automotive production.
On the site of Dmitrovgrad Automobile Units Plant an industrial park is being set up with 15 thousand square meters.
Project goals:
1. Creation of new brand, which is attractive for investors and partners.
2. Development of basic technology.
3. Development of R&D.
4. Extension of the sales market at the expense of partners' sales markets.
5. Development of logistics and service functions.
6. Total project cost – 5.7 billion RUR of which:
7. Investment in equipment and accessories – 4.8 billion RUR.
8. Renovation of the industrial park site – 0.9 billion RUR.
9. Number of employees – 8.4 thousand.
Project partners:
Cimos, Delphi, TRW, Magnetti Marelli, Katcon, etc.
The project Zavolzhye Industrial Zone with government support from the Investment Fund RF was confirmed on 28 August
2009 by order of the government of the Russian Federation. The total area of the industrial park is 623.0 ha; free space in the
industrial park - 525.4 ha. The automotive component producers Takata (air bags, safety belts and wheels) and Schäffler
(automotive and industrial components including bearings for trucks and cars, clutches, engine components and parts of belt
drives with a total of about two billion RUR are residents of the park.
Ulyanovsk can also provide well-educated professionals for the automotive sector. The following educational institutes prepare
staff for the industry:
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94
Ulyanovsk State Technical University
Dmitrovgradsky Technical College
Ulyanovsk Automechanical Vocational School
Ulyanovsk Electromechanical College
10. Northwestern Cluster
The North-Western region of Russia encompasses two automotive centers in St. Petersburg / Leningrad oblast and Kaliningrad
oblast. During the time of Soviet Union there was no automotive production in this region. Within about 10 years from 2002 an
automotive cluster with about actual 7 OEMs and 22 spare part producers has been established in St. Petersburg / Leningrad
oblast through greenfield investments by foreign companies. Due to this fast development of the automotive cluster St.
Petersburg has been referred to as the new Detroit of Russia.
The Northwest Federal District is one of the most developed in terms of economy of the Russian Federation producing 10
percent of the country’s GDP. It is also responsible for 11 percent of the country's overall industrial output. 83 percent of the
population lives in cities – this represents the highest rate of urbanization among the country's federal districts.
In the following graph the development of the local car production of the automotive clusters in North-West Russia (in units) is
shown:
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Table 17: Car Manufacturing Volume in North-West Russia
Volume of car manufacturing in North-West Russia (in thousand units)
Year
2008
2009
2010
2011
2012
St. Petersburg
47.5
19.9 (-59%)
69.4 (+349%)
259 (+373%)
389.3 (+150%)
Leningrad Oblast
65
41.3 (-36%)
80.4 (+194%)
99 (+23%)
119 (+20%)
Kaliningrad
108.5
60.4 (-44%)
170.2 (+282%)
222 (+30%)
250 (+13%)
Total
221
121.6 (-45%)
320 (+263%)
580 (+81%)
758.3 (+31%)
The current capacity growth of car production is driven more through the implementation of the decree 166 in 2011 and pushed
more by the government industry policy than by market growth. It also includes the risks of overproduction in the still
uncertain market development. In 2009 for example the automotive market was reduced to half its size during the economic
crisis in the clusters in North-West Russia. At the moment most production expansion is the result of partnerships between
foreign OEMs and Russian car producers (e.g. Ford-Sollers in Leningrad oblast and in Tatarstan) to fulfil the requirements of
decree 166.
Reasons for the successful establishment of the automotive cluster are:










Port of St. Petersburg which simplifies the process of delivery
Geographical proximity to Western Europe
Developed transport hub
Extensive support by the local government
Developed infrastructure
Political and macroeconomic stability
Legislation with tax incentives to promote investments
Special economic zones
Qualified labour forces
Large scientific and educational centre
In 2011 most of OEMs in the automotive North-Western cluster (Nissan, GM, Ford-Sollers, Magna) signed decree 166 with the
government. The goal of decree 166 is to localize the car production up to a level of 60% until 2018 and boost the car production
until 300,000 / 350,000 cars per year to retain import duties for car parts from 0 – 5%. The strategy of the foreign OEMs is
thus to corporate with Russian contract manufacturers regarding the production volume and to pursue a complete-knockdown
kit production, CKD and SKD, due to local assembly policies, weak supply base and an uncertain market. But while CKD
assembly should not exceed 5% of assembly according to decree 166, there the CKD assembly is the preferred kit assembly
method in the cluster. Next step would be ‘full local production’, but so far only Ford-Sollers Vsevolozhsk announced a switch
from kit assembly. The following graphs show the actual localization and investment plans of OEMs:
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Table 18: Localization in Automotive Production in North-West Russia
Company
Location
Established in
Ford-Sollers
30% (Ford Focus)
CKD Ford Focus
Toyota
General
Motors
30% planned level
20% (July 2012)
2007
SKD Assembly
Volume of
investment
(million USD)
1,200
(20112015)
150
309
Nissan
24% April 2013
80% 2016
2009
167
HyundaiKIA
45%
Own
supplier
park
Shushary
Industrial Zone
Shushary
Industrial Zone
2010
CKD Solaris
2002/2010
10
1,500
All trucks
2013
25
200-300 (2013)
All trucks
Scania
MAN
Produced cars
(2012)
300,000
100,000 (2014)
230,000 (2015)
100,000 (2014)
+
Nissan
Togliatti
(Almera)
Model range
Focus, Mondeo
Chevrolet
Cruze,
Chevrolet
Captiva,
Opel
Astra,
Opel Antara
Nissan Quashqai, Pathfinder,
Hi-Cross,
Hyundai-Solarius, KIA-Rio
In the future the cluster will consist of foreign OEMs, local Russian car contract manufacturers, mostly foreign tier-1 spare part
producers and some Russian component producers which will have to modernize in cooperation with Asian or Western
European tier suppliers.
There are several investment programs to increase the volume of produced cars, to increase the percentage of localization, to
establish supplier parks and attract tier-1 producers to build up production facilities.
Fiat-Chrysler announced in 2012 that it will build a factory in St. Petersburg with a yearly production of 120,000 cars but no
final investment agreement has been achieved so far.
Yarovit Motors plans to build a factory to produce the hybrid Yo-Mobile near St. Petersburg. The launch of the production was
already postponed and it is uncertain if the production of the Yo-Mobile will start at the end of 2014 or in 2015 .
Leningrad oblast plans to establish a bigger automotive cluster for producers of car components in addition to the existing
companies.
In Kaliningrad oblast, Avtotor currently profits from zero duty on import car components as part of the Special economic zone.
But this arrangement will expire in 2016 and at the moment it is unlikely that the government will prolong it. That is why in
2012 Avtotor announced that it will develop a big automotive cluster with car production of about 350,000 per year in
cooperation with Magna from 2014 on to retain favourite terms in the import of car components within degree 166.
The goal of the government industry policy will be up to 400 spare part producers in 2020. But only 40 are present for the
moment and many more are still hesitating to open a local production. The future will be to develop more supplier parks like
Hyundai did, but that is not enough. There is still a shortage of supply. More growth can be achieved using the strategy of JV
between Russian component producers with mostly outdated technology and foreign tier-1 producer to modernize the
production and quality of spare parts fulfilling the ISO Quality Management Systems. Due to decree 566 tier-1 producers have
to localize also their production in Russia. In the Hyundai supplier park tier-2 producers can deliver directly their products to
the present tier-1 suppliers. But outside of supplier parks it will be difficult to motivate tier-2 suppliers to build up local facilities
due to little volume and uncertain market development. Even Hyundai with its supplier park has a localization rate of 45%,
which is below the needed 60% in 2018.
Local OEMs try to attract spare part producers with the establishment of supplier parks near the OEM factory. Hyundai, for
example, starts its car production together with a supplier park of its spare part producers. Or they include the spare part
RUSSIAN CAR INDUSTRY
97
producer from the beginning in the OEM factory like Toyota with Toyota-Boshoku. GM and Nissan plan to set up specific
supplier parks in the future for special needs (e.g. Nissan for plastic parts).
In contrast to OEMs, Russian spare part producers were already present in St. Petersburg / Leningrad oblast and have supplied
the traditional Russian OEMs in the Volga region with their products. Due to SKD-assembly and custom free import of auto
components in Kaliningrad oblast there are currently no spare part producers present. But if the set-up of the new automotive
cluster planned by Avtotor & Magna is successful, there will appear another cluster of spare part producers in Kaliningrad.
With the establishment of most tier-1 OES there will be a shortage of tier-2 producers, as the Tier-1 OES have to localize their
production as well.
For the near future the automotive cluster in Northwest Russia will consist of foreign OEMs, a local Russian car contract
manufacturer in Kaliningrad, mostly foreign tier-1 OES and some Russian component producers, which will have to modernize
or be forced to leave the market. There are two steel producers which can deliver components for tier-1 and tier-2 OES:
Severstal (Cherepovetz, Vologda Oblast, www.severstal.com) in a JV with Gestamp and Magnitogorsk Iron & Steel Work
(Magnitogorsk, Chelyabinsk Oblast, http://eng.mmk.ru) over its local daughter company Intercos-IV.
10.1. GENERAL INFORMATION ON ST. PETERSBURG / LENINGRAD OBLAST
St. Petersburg is the second biggest city in Russia with about 5 million inhabitants and the second most important economic
centre after Moscow. The area of the federal subject St. Petersburg is 1,439 square kilometers, which consists of Saint
Petersburg city proper and nine municipal towns. Leningrad Oblast, with about 1.7 million people, located around St.
Petersburg, has seaports like Ust-Luga through which a significant part of cars for Russian customers are imported. Saint
Petersburg and the Leningrad oblast are a major trade gateway, financial and industrial centre of Russia.
Economic growth of St. Petersburg accounted for 12.5% in 2012, per capita income reached 27 thousand roubles. The city is
currently ranked 1st among other Russian regions according to the number of small enterprises per 100 thousand residents.
The automotive cluster of St. Petersburg/Leningradskaya oblast consists of the following OEMs:
Table 19: OEM in St. Petersburg/Leningrad Oblast
Company
Ford
Toyota
General
Motors
Nissan
Hyundai-KIA
Scania
MAN
Location
Established in
Vsevolozhsk
Shushary
Industrial Zone
Shushary
Industrial Zone
2002
2007
Volume of
investment
(million USD)
330
150
Cars produced
(2012)
Model range
2008
309
97,200
Kamenka
Industrial Zone
Kamenka
Industrial Zone
Shushary
Industrial Zone
Shushary
Industrial Zone
2009
200
42,800
2010
650
224,000
Hyundai-Solarius, KIA-Rio
2002/2010
10
1,500
All trucks
2013
25
200-300 (2013)
All trucks
119,000
31,120
Focus, Mondeo
Camry
Chevrolet
Chevrolet
Opel
Opel Antara
Cruze,
Captiva,
Astra,
In 2012 389,300 cars were manufactured locally by foreign OEMs in St. Petersburg (with Ford Vsevolozhsk: 508’300). This was
a high growth (+112.5%) compared to 2011. St. Petersburg ranked second (after the Volga-located automotive cluster) in car
production in Russia with a market share of about 25%. For 2013 a sharp decrease (-20%) is expected in the local production
with the total output of around 310,000 due to economic stagnation of the Russian economy (Source:
http://eng.autostat.ru/news/view/7497/).
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Besides the described OEMs, since 2000, Caterpillar has been assembling its construction and mining equipment in Tosno
(Leningrad Oblast) for the CIS-market, and Nokian Tyres has invested about 300 million USD to open and run a tyre plant in
Vsevolozhsk, Leningrad Oblast.
The strategy of local authorities was largely successful to form and build up an automotive cluster in St. Petersburg / Leningrad
Oblast. Initially, car manufacturers were attracted and later the producers of spare parts for them. The new automotive cluster
is now being formed. The goal is an annual car output of about 1 million vehicles by 2018 with total investment in car plants of
1.3 billion USD.
The following tier-1 spare part producers are located in St. Petersburg/Leningrad Oblast:
Table 20: OES in St.Petersburg/Leningrad Oblast
Company
Location
Establish
ed in
Volume of
investment
(million USD)
JohnsonControls
GestampSeverstal
Saperny
2005
Vsevolozhsk
2009
84.5 Euro
Autoliv
Faurecia ADP
Vsevolozhsk
Luga
2011
2008
11
Tenneco
Grupo Antolin
Gorelovo
Tosno
2007
2011
2.0
14 + 30 (2 factory)
MW Eurodisk
Yura
Corporation
Kingisepp
Ivangorod
2011
2010
50
10
MagnaTechnoplast.
Kolpino
TI-Automotive
Vsevolozhsk
2009
50
Eberspae-cher
Lear
Magna Cosma
(Peterform
LLC)
Vsevolozhsk
Shushary
2011
2008
2010
100
Kamenka
2010
Toyota suppliers
park (Kamenka)
Hyundai suppliers
park (Levashova)
2007
15
2010
200
Magna Cosma
(Peterform
LLC)
ToyotaBoshoku
SungWoo
Hitech
RUSSIAN CAR INDUSTRY
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Product range
OEM clients
Seats
&
Seats
covers
Metal
body
elements (pressing
& assembly)
Safety belts
Plastic
components (seats,
carpets,
door
linings,
dashboards,
elements)
Exhaust systems
Components
for
car
interiors
(windows, ceilings,
door panels
Steel wheels
Components
for
automotive brake
system
Bumpers,
instrument panels,
door
modules
assembly, outside
mirror assembly
Supplier of fuel
and brake systems
Exhaust systems
Seats
Body & chassis
systems,
energy
management,
instrument panelbean carriers
Body & chassis
systems,
energy
management
Seats
Ford Focus, Nissan, GM,
Power body parts,
front
&
rear
Hyundai, KIA
Ford, GM, Nissan
Toyota, Nissan
Ford, Nissan, Avtoframos,
VW, Mobis Module
Ford, GM, Toyota
Hyundai-Kia,
Avtoframos-Renault,
Skoda
Ford,
VW-
PSMA RUS, AvtoVaz
Hyundai
Nissan, Ford
GM, Ford, VW, Nissan,
Hyundai
Nissan
Ford Mondeo
Hyundai, Nissan, GM
Hyundai
Toyota
frames, car bonnet
SeJong
NVH
DooWon
Daewon
DongHee
Shin Young
Hyundai suppliers
park (Levashova)
Hyundai suppliers
park (Levashova)
Hyundai suppliers
park (Levashova)
Hyundai suppliers
park (Levashova)
Hyundai suppliers
park (Levashova)
2010
Hyundai suppliers
park (Levashova)
Exhaust system
Hyundai, KIA
Interior trim, roofs
& doors
HVAC systems
Hyundai, KIA
Seats
Hyundai, KIA
Front
engine
mounts, hatches,
rear & upfront
suspension,
fuel
tanks, pedals
Body parts
Hyundai, KIA
Hyundai, KIA
In North-Western Russia there are several tier-3 suppliers (commodities, components for tier-1 and tier-2 producers). The most
important tier-3 supplier is the steel producer Severstal in Cherepovetz, Vologda oblast.
Leningrad oblast in cooperation with St. Petersburg is developing an automotive cluster for car component producers around
Vsevolozhsk, north of St.Petersburg, which includes actual Grupo Antolin, Nokian Tyres, Tenneco Automotive, GestampSeverstal, TI-Automotive and Autoliv.
10.2. GENERAL INFORMATION ON KALININGRAD
Kaliningrad oblast is an exclave of Russia, surrounded by Poland, Lithuania, and the Baltic Sea. The total area accounts for
15,100 sq. km, the population – for 941,873 people. Major cities and towns are Kaliningrad, Baltiysk, Pillau, Insterburg, Gusev,
Sovetsk.
Due to the existence of a special economic zone (SEZ) in Kaliningrad since 1996 with special custom regime (duty free import of
components) car assembly has been in existence already since 1997. The contract assembly of different car types in Kaliningrad
grew significantly until the crisis in 2008/2009 and again during the post-crisis recovery until 2012 with a volume of 250,000
manufactured cars per year. During the first 6 months in 2013 the car production fell about 6.7% to a volume of 115,100.
Table 21: OEM in Kaliningradskaya Oblast
Company
Avtotor
Location
Kaliningrad
Established in
Volume of
investment
(million USD)
1994/1997
Produced cars
(2012)
250,000
(Contract
manufacturing)
Model range
BMW, KIA, Open,
Hyundai Truck
Spare part producer in Kaliningrad Oblast:
Table 22: OES in Kaliningradskaya Oblast
Company
Brisk
RUSSIAN CAR INDUSTRY
100
Location
Ozersk
Established in
2000
Volume of
investment
(million USD)
Product range
Spark plugs,
Garage equipment
for car repair
OEM clients
GM,
10.3. SWOT-ANALYSIS NORTHWESTERN CLUSTER
Table 23: SWOT-Analysis St. Petersburg/Leningrad Oblast
Automotive Cluster St. Petersburg / Leningrad Oblast
Strengths:

Port of St. Petersburg which simplifies the
process of delivery

Geographical proximity to Western Europe

Developed transport hub

Extensive support by the local government

Developed infrastructure

Political and macroeconomic stability

Legislation with tax incentives to promote
investments

Special industrial zones

Qualified labour forces

Large scientific and educational centre
Opportunities:




Local production & assembly,
Just-in-time production possible
Favourite logistic chains
Proximity of European market
Weaknesses:





Shortage of skilled workers
Pressure to develop a local qualified supply base
Changes in the political environment
Traditional Russian OEMs & spare part producers located
far away
Risk of ‘overproduction’
Threats:




Localization rules
Boom & bust economic development
Not enough production volume to attract spare part
producers
Timing of the market entry for Tier-1 & Tier-2 suppliers
Automotive Cluster Kaliningrad Oblast:
Table 23: SWOT-Analysis Kaliningrad Oblast
Strenghts:


Non-freezing sea and river ports

Surrounded by EU-territory, favourable
geographical location

Short distance to European market

High density of transport infrastructure

Special economic zone with substantial tariff
and tax breaks
Weaknesses:
Opportunities:
Threats:




Support and high attention by the Russian
government
Investment in transport infrastructure
Construction of the Nuclear Baltic Power
Plant
Possible visa free travel with the EU
RUSSIAN CAR INDUSTRY
101








Relative high transport cost in trade with main Russia
Low quality of infrastructure
Lack of strong scientific research base
Shortage of skilled workers
Relative high energy prices
Expiration and changes of current favourite special
economic zone conditions for manufacturing in 2016
Dependence on transport tariff policy of Lithuania and
Belarus
Reduced tariffs after WTO accession
10.4. COMPANY PROFILES OEMS
Ford Sollers-Vsevolozhsk (USA)
Contact
Leningrad Oblast
Vsevolozhsk
Promzona Kirpichni Zavod 1
Tel: +7 (812) 346-71-24, 346-71-15
Web: www.ford.ru/AboutFord/Plant
Established in
2002
Number of employees
2744 (2013)
Annual production
119,000 (2012); 125,000 (capacity)
volume by models
Localization rate by
CKD 30 - 35% Ford Focus, 10 – 20% Ford Mondeo (2012)
models
Plans for future
R&D centre, enlargement of capacity up to 300,000.
Suppliers producing in
Lear (seats & harnesses Mondeo)
Russia
Neste (fuel)
ZAO Tsentrspirtprompererabotka (washing liquid)
Standardplast (Vibro-insulation components)
BASF-Vostok (Painting)
Brunch of Arteko (Coolants)
Johnson Controls (seats Focus)
Bor glass plant (automotive glass)
Gestamp-Severstal (body parts: pressing & assembly)
Tenneco (exhaust systems)
Faurecia (door panels, dashboards, consoles)
Michelin (tyres)
Magna (bumpers)
TI Automotive (fuel & break pipes)
SaarGummi-Russland (rubber seals)
Kinelagroplast Kinel (air ducts, lockers)
Zavolzhye motor plant (aluminum brackets)
Balakovorezinotehnika (noise insulation, boot shelf)
Detalstroykonstruktsia (fuel tank, saloon and boot carpets)
SKAD (wheel disks)
AKOM (batteries)
See: www.ford.ru/AboutFord/Plant/PlantSuppliers
Business opportunities
Further localization and automation.
for Swiss suppliers
Contact person
Ilya Butin, General Director
Olga Petrova, Assistant to General Director
E-mail: opetrov2@ford.com
Source: Public sources, Spark-Interfax agency
General Motors Auto LLC (USA)
196626 St. Petersburg
Contact
Avtozavodskaya str. 2
Shushary village
Tel: +7 812 319 20 03
Web: www.generalmotors.ru
Established in
2008
RUSSIAN CAR INDUSTRY
102
Number of employees
Annual production
volume by models
Localization rate by
models
Plans for future
Suppliers producing in
Russia
Business opportunities
for Swiss suppliers
Contact person
2,000 (2013)
Production capacity: 98,000 (2012)
Chevrolet Cruze sedan/hatchback, Chevrolet Captiva SUV (CKD), Opel Astra sedan (SKD),
Opel Antara (SKD)
20% (2012)
Future investment of 1 billion USD; production of Chevrolet Trailblazer in 2013, production
capacity 230,000 (2015), level of localization planned – 60% (2018); number of employees –
4,000
Peterform (Magna Cosma, metal body elements)
Gestamp-Severstal (metal body elements)
TI Automotive (fuel & break pipes)
Johnson Controls (seats)
ZAO Vlankas (plastic body elements)
Kursk Accumulator Plant (batteries)
K&K (wheel disks)
Automotive (safety belts)
Stavrokomplekt (carpets)
Avtotekhnika (interior trim elements)
VIZA (sound & noise insulation set)
Sourcing is done in Russia, Europe and elsewhere.
Equipment and electronic parts for press and body shop, new assembly lines; looking for 25
additional component producers to establish a supplier park.
Romuald Rytwinski,General Director
Sriram Sringari, Head of Purchasing General Motors Russia:
E-mail: elina.zhuk@gm.com
Source: Public sources, Spark-Interfax agency
Hyundai Motor Manufacturing RUS (HMMR) (South Korea)
Contact
St. Petersburg
Gorskaja str., Levashovskoe Shosse, Uchastok 1
Tel: +7 (812) 418-01-00
Web: http://www.hyundai.com/ru/ru/AboutUs/Factory/AboutHMMR/HMMR/index.html
Established in
2010; 70% Hyundai, 30% KIA
Number of employees
4,000 (2012)
Annual production
Production 224'000 (2012): CKD Hyundai-Solarius, KIA-Rio
volume by models
Localization rate by
47% (2013)
models
Plans for future
Future investment in production facility (planned production in 2013: 230,000) and the
supplier park
Sungwoo Hitech Rus Ltd. (Door frames)
Suppliers producing in
Sejong Rus (Components of exhaust system)
Russia
NVH Rus Ltd. (Interior elements)
Doowon Rus (Ventilation and conditioning systems)
Daewon Rus (Seats)
Donghee Rus (Fuel tanks and rear suspension)
Shinyong Rus Ltd. (Body parts)
Hyundai Hysco (Cold-rolled steel sorting)
RUSSIAN CAR INDUSTRY
103
Business opportunities
for Swiss suppliers
Contact person
Hyundai Mobis (Front and rear bumpers, saloon front panels)
Yura Corp. (Harnesses)
Han Il Tube (Fuel and brake pipes)
Peterform LLC (Magna Cosma) (body parts)
Antolin (interior trim elements)
Tier-2 supplier for the Hyundai supplier park, qualified car components
Shin Myeong Ki, General Director
Andrey Kazak, Director of Production Division
Maria Maltseva
E-mail: M.Maltseva@hyundai-motor.ru
Source: Public sources, Spark-Interfax agency
MAN Truck & Bus Production RUS (Germany)
Contact Data
196084 St. Petersburg
Uliza Vosduchoplavatelnaia 19
Tel: +7 (812) 449 52 52
Web: www.man-spb.ru
Established in
2000 (buses); 2008 (trucks)
Number of employees
100 (2012)
Annual production
SKD Assembly of 200-300 trucks (2013), production capacity 6,000
volume by models
Model: MAN TGS WW Euro 4
Localization rate by
Unknown, only component-import based assembly; component manufacturing in the future
models
(gearbox, axle assembly, other components)
Localization, joint purchasing office with Scania-Peter St. Petersburg, project of production for
Plans for future
the following components: steering column, transmission, fuel system, brake system, brake and
fuel pipes; fuel tanks, washer reservoir; wheel disks; seats, interior plastic parts, plastic panels,
bumpers, tires, rubber sealing materials, floor carpets, interior trimming elements of passenger
and baggage compartments; control levers, instrument cluster; batteries, wiring elements;
automotive glass, window lifts, mirrors; painting materials; roofing, hatch cover, door plates
Suppliers producing in
n.a.
Russia
Business opportunities Future localization targets
for Swiss suppliers
Contact person
Thomas Schneiderheinze, General Director
E-mail: thomas.schneiderheinze@man.eu
Source: Public sources, Spark-Interfax agency
Nissan Manufacturing RUS LLC (Japan)
Contact
194362 St. Petersburg
Pargolovo
Komendantskiy prospect 140
Tel: +7 812 303 62 24
Web: www.nissan.ru
Established in
2009
Number of employees
2,000 (2012)
Annual production
Production 42,800 (2012) Production capacity: 50,000 (2012)
volume by models
CKD Nissan Teana, X-Trail, Murano, Infiniti FX/M (SKD)
Localization rate by
24% (2013)
RUSSIAN CAR INDUSTRY
104
models
Plans for future
Suppliers producing in
Russia
Business opportunities
for Swiss suppliers
Contact person
Future investment of 167 million Euro; production of Pathfinder SUV (2014) and Quashai
(2016), production capacity 100,000 (2014), level of localization planned 80% (2016); cooperation among Renault-Nissan-AVTOVAZ Group
Gestamp-Severstal (body parts)
TI Automotive (fuel & break pipes)
Johnson Controls (seats)
Lik-Avto Leoni (electric wiring)
Faurecia (seats, carpets, door linings)
Eberspächer (exhaust system)
Magna-Cosym (assembly of body parts)
Magna-Technoplast (bumpers, mirror lines, sills, window lifters, rear door linings)
Bor Glas Plant (automotive glas)
Tramiko (ceilings)
Visteon Avtopribor (dashboards)
ZAO ZM (decorative film for door frames)
Raviv Group Rus (washing systems)
Detalstroykonstruktsia (boot carpets)
Establishment of a supplier park for 20 plastic part producers for Nissan
Dmitry Mikhailov, General Director
Tatjana Moisechenko
E-mail: TMoiseichenko@nissan.ru
Source: Public sources, Spark-Interfax agency
Scania-Peter LLC (Sweden)
Contact
196626 St Petersburg
Moskovskoe sh. 177a
Tel: +7 812 346 68 80
Web: http://www.scania.ru/about-scania/factory_sankt-petersburg/
Established in
2000 (buses); 2008 (trucks)
Number of employees
100 (2012)
Annual production
SKD assembly of 1,300 trucks (2012), production capacity 3,500
volume by models
Models: Scania P, R, G 4x2, 4х4, 6x2, 6x4, 6x6, 8x2, 8x4
Localization rate by
10% (chassis); 28% planned in the future
models
Plans for future
Localization, joint purchasing office with MAN St. Petersburg, Export from Russia;
Ban on the production of engines that use Euro-2 in 2013. The full switch to Euro-4 in 2015
and to Euro-5 in 2016 will open new market opportunities.
Suppliers producing in
n.a.
Russia
Business opportunities Future localization targets, Second plant planned in Sertolovo (Vsevolozhsk, Leningrad
for Swiss suppliers
Oblast), capacity 3,500/year, investment volume about 70 million USD
Contact person
Johan Lars Balck, General Director
Bengt Aronsson, Purchasing Director Russia
E-mail: Bengt.Aronsson@scania.com
Source: Public sources, Spark-Interfax agency
Toyota Motor Manufacturing Russia LLC (TMMR) (Japan)
Contact
St. Petersburg
RUSSIAN CAR INDUSTRY
105
Established in
Number of employees
Annual production
volume by models
Localization rate by
models
Plans for future
Supplier producing in
Russia
Business opportunities
for Swiss suppliers
Contact person
Shushari village
Uliza Sofeiskaja 115 Litera A
Tel. +7 812 305 16 99
Web: http://www.toyota.ru/about/factory.tmex
2007
1,600 (2013)
28,441 Toyota Camry (2012); 50,000 (capacity), Export to Kazakhstan from 2012
Toyota Camry, planned 30%
Future investment of approx. 185 million USD, production of Toyota RAV4 from 2016,
enlargement production capacity to 100,000 cars

Toyota-Boshoku (seats)

Toyota-Tsusho-Machinery (batteries)

Autoliv (safety belts)

SEVS Rus (wirings)

Bor Glass Plant (automotive glass)

Toyota Tsushi Machinery (batteries)
Requests for automation, special machinery
Mazunara Iosinori, General Director
Purchasing office:
Galina Staykov, Toyota Motors Europe, direct
Galina.Staykov@toyota-europe.com
Dmitry Fedorov, TMMR, services & goods for production
modernization, maintenance, utilities, E-mail:
Fedorov.Dmitry@tmmr.ru
Source: Public sources, Spark-Interfax agency
Yarovit Motors / Yo-Auto
Contact
Established in
Number of employees
Annual production
volume by models
Localization rate by
models
Plans for future
Suppliers producing in
Russia
Business opportunities
for Swiss suppliers
Contact person
RUSSIAN CAR INDUSTRY
106
part
&
components;
E-mail:
195197 St.Petersburg
Feodosiyskaya str. 5, Building A
Tel: +7 812 380 44 44, +7 812 640 25 86
Web: http://eng.yarovit.com, http://www.yo-auto.com/yo-mobile/utp/
2003 Yarovit Motors; 2012 JV Yarovit Motors & Onexin Investment Group for Yo-Auto.
n.a.
Local SKD assembly capacity of up to 500 Terberg trucks (cargo trucks, dump trucks, bolster
trucks) per year.
In 2012 Yo-Auto, a joint venture of Yarovit and the Onexim investment group, will start the
production of a hybrid electric car for inner city driving in 2014/2015.
n.a.
There are plans to build a manufacturing plant for Yo-Auto in the industrial zone of Marijno
with production capacity of up to 45,000 cars per year in 2013. Investment budget for the YoAuto is about 150 million EUR.
Magna
Prototypes are shown to the public in 2013. Special technology is used for the design and
production of the hybrid electric car.
Dmitry Razumov , Chairman of the Board
Andrey Biryukov
Andrey Ginzbourg, General Director
E-mail: ginzbourg@yo-auto.ru
Source: Public sources, Spark-Interfax agency
Announced projects, but no decision until now:
Avtotor Holding
Contact
Established in
Number of employees
Annual production volume
by models
Localization rate by models
Plans for future
Suppliers producing in
Russia
Business opportunities for
Swiss suppliers
Contact person
236013 Kaliningrad
Uliza Magnitogorskaja 4
Tel: +7 4012 59 00 02
Web: www.avtotor.ru
1997
3,600 (2012)
Production 250,000 (2012); 4 manufacturing areas; Production capacity: 320,000 (2013);
fabrication and painting or car bodies;
possible contract manufacturing of up to 30 models; mostly SKD assembly (2012):
a. Kia (SKD): Kia Sorento, Kia Mohave, Kia Sportage, Kia Cee'd,, Kia Soul, Kia Venga,
Kia Cerato,
b. BMW (SKD): BMW 7, BMW 5, BMW Х3, BMW 3, BMW X1, BMW X5, BMW X6,
c. GM (production capacity 50'000, CKD) : Cadillac CTS, Cadillac Escalade, Chevrolet
Tahoe, Chevrolet Aveo, Chevrolet Lacetti (CKD), Chevrolet Epica, Chevrolet Rezzo,
Chevrolet Malibu, Opel Antara, Opel Astra (SKD), Opel Zafira (SKD), Opel Insignia,
Opel Meriva
15% (2012)
In 2016 the privilege of SKD assembly and custom free import of car components will end. In
cooperation with Magna Avtotor plans to establish an automotive cluster with annual
production capacity first of 250’000, later of 350’000. Planned are 21 new car plants, among
them 6 full-cycle automotive manufacturing plants and 15 plants producing automotive
components. 14 plants should be constructed until 2016 and the rest – until 2018. Localization
level should reach 50% by 2022. Overall investment should be around 3 billion Euro and about
20’000 jobs should be created.
BMW plans to switch from SKD to CKD-assembly if production and sales pass 30’000 cars.
The assembly of trucks and buses of Hyundai should start in 2013/2014.
Unknown, SKD-assembly except part of GM
Requests for machinery and automation equipment, tier-1 & tier-2 suppliers when building up
the future automotive cluster in Kaliningrad.
Valery Draganov, President Holding
Alexander Sorokin, CEO
Vladimir Dlugokansky, Deputy Director for New Projects Department
Andrey Verishnikov, Director of Business Development
E-mail: verizhnikov@avtotor.ru
Source: Public sources
Fiat-Chrysler-Sberbank (Italy & USA)
Established in
Number of employees
Annual production volume
RUSSIAN CAR INDUSTRY
107
JV Fiat-Chrysler (80%) & Sberbank (20%) in cooperation with ZIL
2014 (planned), possible investment of up to 825 million EUR
n.a.
Planned 120,000 cars & vans per year
by models
Localization rate by models
Plans for future
Suppliers producing in
Russia
Business opportunities for
Swiss suppliers
Source: Public sources
Model range: Chrysler Jeep Cherokee & Grand Cherokee
n.a.
Not known whether plant will be built in the future. Proposed alternative is production at
TAGAZ (contract manufacturing plant).
n.a.
n.a.
10.5. COMPANY PROFILES OES
Autoliv Russia (Sweden & USA)
Contact
188640 Leningrad Oblast
Vsesvolozhsk
Industrial zone "Kirpichny zavod"
Zavod "Russki Diesel"
Tel: +7 921 9070125
Web: www.autoliv.com
Established in
2008
Number of employees
101 - 250 (2012)
Annual
production Seatbelt assembly plant; production capacity – about 83,000
volume by components
Plans for the future
Potential enlargement of production towards airbags and delivery to Nissan Teana and to
Hyundai
Customers
Toyota
Business opportunities Special machinery
for Swiss suppliers
Contact person
Patricio Farias, General Director
Source: Public sources, Spark-Interfax agency
Avar (Avtoelektroarmatura)
Contact
180017 Pskov
Sovietskaja 118
Tel: +7 8112 664 100, +7 8112 664 336
Web: www.zavodavar.ru
Established in
1967
Number of employees
1360
Annual
production Automotive electronics, safety locks
volume by components
Plans for the future
Customers
Business opportunities
for Swiss suppliers
Contact person
Modernization of production facility
AVTOVAZ, GAZ, UAZ, KAMAZ, GM-AVTOVAZ, MAZ, GM-Uzbekistan
Special equipment
Valentin Pavlovich Vasilev, General Director
E-mail: info@zavodavar.ru
Source: Public sources, Spark-Interfax agency
RUSSIAN CAR INDUSTRY
108
Big Filters
Contact
Established in
Number of employees
Annual
production
volume by components
Plans for the future
Customers
Business opportunities
for Swiss suppliers
Contact person
198099, St. Petersburg
Kalinina st. 53
Tel: +7 812 337-13-28
Web: www.bigfilter.com/eng
1988
400 - 500
Air filters; 1,300 different product variants to automotive customers
Delivery to more foreign OEMs (e.g. Renault-Nissan); Modernization of production facility
VW-Skoda, AVTOVAZ, GAZ, UAZ, GM-Chevrolet, PAZ, Export to 13 countries (e.g. USA, Israel,
UK, Germany)
Special equipment, machinery for modernization
Boris Belin, President
Nadezhda Tuzhilova, General Director
Vladlen Azarov, Commerical Director
E-mail: info@bigfilter.com
Source: Public sources, Spark-Interfax agency
Caterpillar Tosno (USA)
Contact
Established in
Number of employees
Component production
Plans for future
Suppliers producing in
Russia
Business opportunities
for Swiss suppliers
Contact person
187000 Leningrad Oblast
Tosno
Moskovskoe sh., d. 1/1
Tel: +7 812 7184210
Web: http://rossiya.cat.com
2000
700 (2012)
Production of about 300 components for tracked and wheeled excavators, wheel loaders, forest
machines, excavators, loaders and bulldozers and exporting them to Caterpillar factories in
Belgium, France, UK and Poland for assembly.
Production of engines for Russian bus manufacturer LIAZ.
In 2008, the plant began production of excavators Cat 320D and Cat 336DL with a high
proportion of production localization. In 2011 the factory starts the local manufacturing of Cat
773 for the mining industry in Russia and the CIS-countries. Output per year is about 300
machines. Cat has a market share after BelAZ of 15-20%.
Local welding and painting, metal and machinery shop. Production of 300 chassis per year.
Growing local production of excavators for the mining and construction industry. Further
localization.
Intercos-IV
Need of special machinery and automation solutions.
Andrey Borisovich Petrov, General Director
E-mail: caterpillar_tosno@cat.com
Source: Public sources, Spark-Interfax agency
RUSSIAN CAR INDUSTRY
109
Eberspächer Exhaust Systems Rus (Germany)
Contact
195030, Sankt Petersburg
Established in
Number of employees
Annual
production
volume by components
Plans for the future
Customers
Business opportunities
for Swiss suppliers
Contact person
Elektropultovcev 7
Tel: +7 812 7401589
Web: http://www.eberspaecher.com/index.php?id=1094
2011
15
Assembly of cold end of exhaust systems for Nissan X-Trail and Teana (Just-in-Sequence
Supply Chain).
Production capacity of 42,000 components per year.
Future extension of existing assembly plant through acquisition of additional orders by Ford,
GM, Toyota and Hyundai. Planned production capacity up to 580,000 components per year in
2018.
Nissan
Special machinery for cold end production (Weld cells and welding), automation.
Dmitry Osipov, General Director
Sergey Potapov, Plant Manager
E-mail: an@rus-eesr.ru
Source: Public sources, Spark-Interfax agency
Elast Technologii
Contact
Established in
Number of employees
Annual
production
volume by components
Plans for the future
Customers
Business opportunities
for Swiss suppliers
Contact person
192241 St. Petersburg
Yuzhnoe Shosse 37
Tel.: +7 812 269 62 28, +7 812 269 02 40
Web: www.eelab.ru
1995
n.a.
Mud guards, molded rubber products
Modernization according to requests by OEMs
Ford, Renault-Avtoframos
Special machinery
Stanislav Alexandrovich Zharkov, General Director
E-mail: info@elast-tech.ru
Source: Public sources, Spark-Interfax agency
Faurecia ADP Luga (France & Croatia)
Contact
188230 Leningrad Oblast
Luga
1 ulitsa Bol'shaya Zarechnaya,
Tel.: +7 (81372) 2 68 65
JV between AD Plastik (Croatia) & Faurecia (France)
Web: www.faurecia.com/en/worldwide ; www.adplastik.hr
Established in
2008, investment of 11 million Euros
Number of employees
450 - 500 (2012)
Annual
production Seats, carpets, door lining, elements of exhaust system, dashboard elements, door panels,
consoles, bumpers, instrument panels
volume by components
RUSSIAN CAR INDUSTRY
110
Plans for the future
Customers
Business opportunities
for Swiss suppliers
Contact person
Expansion through possible new contracts with Hyundai, GM and other OEMs
Nissan X-Trail, Nissan Teana, VW-Skoda, Ford Focus, AvtoVAZ, Peugeot-Mitsubishi-Citroen,
Renault-Avtoframos
Special machinery for production of plastic parts, automation
Lezek Khenrik Maluzki, General Director
Source: Public sources, Spark-Interfax agency
Gestamp-Severstal Vsevolozhsk (Spain)
Contact
188640 Leningrad Oblast
Vsevolozhsk
Kirpichny Zavod promzona, kvartal 11, ploshchadka 2
Tel: +7 812 3136810
Web: www.gestamp.com
Established in
2009, total investment until 2013 about 100 million EUR; JV between Gestamp and Russian
steel producer Severstal (www.severstal.com/eng) .
Number of employees
220 (2012)
Annual
production Metal body elements (pressing & assembly), production capacity of about 100,000 sets of body
parts. Production capacity was enlarged to cover new client requests.
volume by components
Plans for the future
Plans for the production of new automotive components and also for a new plant in St.
Petersburg.
Customers
Ford, GM, Nissan , Hyundai
Business opportunities Special machinery
for Swiss suppliers
Contact person
Vladimir Aleksandrovich Berezanski, General Director
E-mail: info@ru.gestamp.com
Source: Public sources, Spark-Interfax agency
Grupo Antolin St. Petersburg (Spain)
Contact
188681 Leningrad Oblast
Vsevolozhsk
Novosaratovka Village
Warehouse Complex, Industrial Zone Utkina Zavod, holding 1
Tel: +7 812 449 18 40
Web: http://www.grupoantolin.com
Established in
2011, investment of 14 million EUR
Number of employees
300 – 350 (2013)
Annual
production Components of interior trim elements (Tier-1/Tier-2)
Sales volume 12 million (2012)
volume by components
Plans for the future
Expansion of production capacity for new customers (GM, Nissan, Toyota, VW). New plant for
auto components will be opened in Tosno, Leningrad oblast, in 2015 with investment of 30
million EUR. Sales volume (EUR 12 million in 2012) should increase up to EUR 50 million in
2016.
Hyundai-Kia, Ford, Renault-Avtoframos, VW-Skoda
New equipment needed for the expansion of production capacity
Customers
Business opportunities
for Swiss suppliers
Contact person
Kirill Vladilenovich Mesenyashin, General Director
Source: Public sources, Spark-Interfax agency
RUSSIAN CAR INDUSTRY
111
Hyundai Supplier Park (Levashova) (South Korea)
Contact
St. Petersburg
Gorskaja str., Levashovskoe Shosse, Uchastok 1
Tel: +7 812 418-01-00, 640 70 71, 640 70 50
Web: http://wikimapia.org/17624699/Hyundai-Suppliers-Park
Established in
2010; 7 spare parts producers, investment 200 million USD, currently 9 spare parts producers
Number of employees
1,300 (2012)
Annual
production 150,000 – 200’000 component kits for Hyundai Solaris (2012):
volume by components
Sungwoo Hitech Rus Ltd. (Door frames)
Sejong Rus (Components of exhaust system)
NVH Rus Ltd. (www.nvhrus.ru; Interior elements)
Doowon Rus (Ventilation and conditioning systems)
Daewon Rus (Seats)
Donghee Rus (Fuel tanks and rear suspension)
Hyundai Hysco (www.hysco.com/eng ; Cold-rolled steel sorting)
Hyundai Mobis (www.mobisrus.ru; Front and rear bumper, saloon front panel)
Plans for the future
Expanding capacity production, potential future delivery to Nissan and Mitsubishi (Kaluga)
Customers
Hyundai-KIA Solaris
Business opportunities Special machinery
for Swiss suppliers
Contact person
General managers:
Be Dzheongsu (Sungwoo Hitech Rus)
Sin Chang Kyu (Sejong Rus)
Vu Khiku (NHV RUS)
Kan En Syn (Doowon Rus)
Li En Bom (Daewon Rus)
Li Chzhong Khvan (Donghee Rus)
Cho Eng Mo (Hyundai Hysco)
Vu Kyun Seb (Hyundai Mobis)
Source: Public sources, Spark-Interfax agency
Inergy (France)
Contact
Maryino industrial zone
Web: www.inergyautomotive.com
Inergy belongs to Plastic Omnium
Planned 2014
n.a.
Fuel tanks; planned production capacity 1 million per year
Established in
Number of employees
Annual
production
volume by components
Plans for the future
Market leader with local market share of 40%
Customers
Planned Ford and Nissan
Business opportunities Special equipment
for Swiss suppliers
Contact person
n.a.
Source: Public sources, Spark-Interfax agency
RUSSIAN CAR INDUSTRY
112
Intercos-IV
Contact
Established in
Number of employees
Annual
production
volume by components
Plans for the future
Customers
Business opportunities
for Swiss suppliers
Contact person
198323 St. Petersburg
Gorelovo posilko
Lomonosovski Rayon
Volkhonskoe shosse 4
Tel: +7 812 3205403, +7 812 2320403
Web: www.intercos-iv.ru
1991, belongs to MMK (Magnitogorsk Iron & Steel Works)
> 1,000
Designing and manufacturing of large tooling for the automotive industry (Tier-2 supplier).
Capacity of up to 250’000 tons of metal products per year
Investment in expansion of production: stamping equipment for stamping metal components
to become a Tier-1 supplier to OEMs in St. Petersburg
Nissan and GM as potential future customers
Molds for Ford, body parts to Gestamp-Severstal,
Molds to Peterform (Magna Cosma & Shing Young) for components of Hyundai, GAZ,
AVTOVAZ, MAZ, KAMAZ, UAZ, ZIL BeLAZ, VW, Caterpillar, Daewoo Motors, Hayes Lemmerz
Special machinery and equipment
Boris Mikhailovich Semenov, General Director
E-mail: semenov@intercos-iv.ru
Source: Public sources, Spark-Interfax agency
Johnson-Controls International (USA)
Contact
196626 St. Petersburg
Shushary
Moskovskoe shosse 70/4, lit. B.,
Tel: +7 812 3107407, +7 812 3345438
Web: www.johnsoncontrols.com
Established in
2005
Number of employees
82 (2012)
Annual
production Seat assembly and metal welding, foam plant from 2012; production capacity about 100,000
seats per year.
volume by components
Plans for the future
Launch of instrument cluster assembly line; Interios plant assembly, Injection moulding (2015)
Customers
Ford Focus; Nissan X-Trail; Chevrolet Cruize
Business opportunities Special machinery and automation solution
for Swiss suppliers
Contact person
Alexander Ivanovich Zaitsev, General Director
Olga Zarubina
E-mail: olga.zarubina@jci.com
Source: Public sources, Spark-Interfax agency
Lear Corporation Vsevolozsk (USA)
Contact
88640 Leningrad Oblast
Vsevolozsk
Promzona Kirpichni Zavod
Web: www.lear.com/en/contact/locations.aspx
Established in
2009
RUSSIAN CAR INDUSTRY
113
Number of employees
Annual
production
volume by components
Plans for the future
Customers
Business opportunities
for Swiss suppliers
Contact person
unknown
Automotive seats and seat parts; production capacity of 25,000; investment was about 20
million USD
Commissioned by Ford to produce seats for the new Ford Mondeo Modell
Ford Mondeo
n.a.
Dmitry Valerevich Birukov, Director
Source: Public sources, Spark-Interfax agency
Magna-Technoplast Kolpino (Magna Exteriors & Interiors) (Canada)
Contact
196651 St. Petersburg
Kolpino
Ishorskij Zavod, Building EZH
Tel: +7 812 322 84 89
Web: www.magnaautomotive.ru/zavody
Established in
2010
Number of employees
150
Annual
production Bumpers, instrument panels, door modules assembly, outside mirror assembly
volume by components
Plans for the future
n.a.
Customers
Ford, Nissan
Business opportunities Machine tools, measuring instruments, pressing tools
for Swiss suppliers
Contact person
Alexey Ivanovich Soldatenkov, General Director
Nikolaus Rumpf, Head of Corporate Office Moscow
E-mail: nikolaus.rumpf@magna-europe.com
Source: Public sources, Spark-Interfax agency
Metalloproduktsia
Contact data
Established in
Number of employees
Annual
production
volume by components
Plans for the future
Customers
Business opportunities
for Swiss suppliers
Contact person
190020 St.Petersburg
Obvodnogo kanala emb. 150
Tel: +7 812 495 95 74
Web: www.karter.ru/site
1993/1996
400
Stamping, sheet metal processing, painting, car accessories, car part design and production
Modernization
Toyota, Mobis Ru, Ford, GM etc. , export to Germany
Interest in JVs and technology transfer
Alexander Podsukhin, General Manager
Source: Public sources, Spark-Interfax agency
MW Eurodisk (Italy)
Contact
RUSSIAN CAR INDUSTRY
114
188452 Leningrad Oblast
Established in
Number of employees
Annual
production
volume by components
Plans for the future
Customers
Business opportunities
for Swiss suppliers
Contact person
Kingisepp Rayon
Alexandrovskaya Gorka
Promzona Fosforit
Tel: +7 813 75 68 500
Web: www.gruppocln.com/en/ru.html
2010, JV between CLN Group (MW=Magnetto Wheels Divison) & Eurodisk; Eurodisk is part of
‘Holding Wheels Production & Trade AG’ (WPT) located in Zug.
135 (2012)
Steel wheels and painting of metal components
Current restructuring, potential capacity increase with new clients
Renault, Nissan, PSA Peugeot-Citroen, AvtoVAZ
New equipment for expansion of production capacity
Roberto Baccetti, General Director
E-mail: info@mwpt.ru
Source: Public sources, Spark-Interfax agency
Nokian Tyres (Finland)
Contact
Established in
Number of employees
Component production
Plans for future
Business opportunities
for Swiss suppliers
Contact person
188676 Leningrad Oblast
Vsevolzhsk
Kirpichny Zavod promzona, kvartal 6
Tel: +7 (812) 3369000
Web: www.nokiantyres.ru
2005
1,309 (2013)
Production of 12.5 million (2012) summer and winter tires for passenger cars and SUVs per
year with 8 production lines. Market share of 25% in the Russian premium tyre segment. About
50% of tyres are exported.
Export to 40 countries (e.g. Scandinavia, CIS-countries, Western Europe, USA/Canada, China).
Expanding local production with up to 14 production lines with a production capacity of 17
million tyres per year.
Need of special machinery and automation solution to improve labor productivity.
Andrey Gennadevich Pantyukhov, General Director
E-mail: info.rus@nokiantyres.com
Source: Public sources, Spark-Interfax agency
Peterform (Cosym) Shushari (JV Magna Cosma International & Shin Young Group) (Canada & South Korea)
Contact
196626 St. Petersburg
Shushary
39 Lenina str. Building A
Tel: +7 812 6405747, +7 812 3467800
Web: www.cosma.com www.shym.co.kr
Established in
2010
Number of employees
450
Annual
production Body systems, Chassis systems, Energy management, Instrument Panel, Beam carriers
volume by components
Plans for the future
100 million investments for the establishment and expanding production capacity of factory
RUSSIAN CAR INDUSTRY
115
Customers
Business opportunities
for Swiss suppliers
Contact person
and maybe another new factory.
General Motors, Hyundai, Kia, Nissan, VW and Ford
Machine tools, measuring instruments, pressing tools
Terry Devers, General Director Peterform LLC
Daria Dranishnikova, Business Development Manager
E-mail: tdevers@cosma.com
Nikolaus Rumpf, Head of Corporate Office Moscow
E-mail: nikolaus.rumpf@magna-europe.com
Source: Public sources, Spark-Interfax agency
Peterform (Cosym) Kamenka (JV Magna Cosma International & Shin Young Group) (Canada & South Korea)
Contact
St. Petersburg
Kamenka Supplier Park,
Tel: +7 812 6405747, +7 812 3467800
Web: www.cosma.com www.shym.co.kr
Established in
2010
Number of employees
550
Annual
production Body systems, Chassis systems, Energy management
volume by components
Plans for the future
Customers
Business opportunities
for Swiss suppliers
Contact person
Investment of EUR 100 million in the expansion of production facilities in St. Petersburg
General Motors, Hyundai, Kia, Nissan, VW and Ford
Machine tools, measuring instruments, pressing tools
Terry Devers, General Director Peterform LLC
Daria Dranishnikova, Business Development Manager
E-mail: tdevers@cosma.com
Nikolaus Rumpf, Head of Corporate Office Moscow
E-mail: nikolaus.rumpf@magna-europe.com
Source: Public sources, Spark-Interfax agency
Tenneco Automotive Volga (St. Petersburg branch) (USA)
Contact
198323 St. Petersburg
Volkhonskoye Shosse 4,
Tel: +7 812 320 25 57
Web: www.tenneco-cleanair.com/en/locations/4
Established in
2007, investment of 2 million USD
Number of employees
n.a.
Annual
production Exhaust systems, production capacity of 100,000 exhaust systems per year with up to 1.5
components
volume by components
Plans for the future
Customers
Business opportunities
for Swiss suppliers
Contact person
Expansion of production capacity for exhaust systems up to 210,000 per year in 2013 with
investment of 1.5 million USD. Toyota as potential new customer.
Ford Focus, GM (Opel Astra, Chevrolet Cruze)
New equipment for expansion of production capacity
Nikolai Romachenko, General Director
Source: Public sources, Spark-Interfax agency
RUSSIAN CAR INDUSTRY
116
TI Automotive (UK)
Contact
Established in
Number of employees
Annual
production
volume by components
Plans for the future
Customers
Business opportunities
for Swiss suppliers
188643 Leningrad Oblast
Vsevolozhsk
Vsevolozhskiy av. 113
Tel: +7 812 676 40 05
Web: www.tiauto.com
2009
35 - 50 (2012)
Supplier of fuel and brake lines
Expansion of production facility with new OEM customers. Increasing of localization.
Ford, General Motors, Hyundai, Nissan and Toyota
Request for CNC machines for bending of

metal tube up to 3m long

diameters of tubes between 4.75mm to 10mm

one or two bending heads
Contact person
Alexander Kedrov, General Director
E-mail: akedrov@ru.tiauto.com
Source: Public sources, Spark-Interfax agency
Toplivnye Sistemy
Contact
Established in
Number of employees
Annual
production
volume by components
192102 St. Petersburg
Ul. Samoilovoi 5, Building D
Tel: +7 812 325-5752
Web: www.topsys.spb.ru
1929/1999
Over 1,000
Engine carburettors, cooling system pumps, engine control electronic system elements, petrol
pumps & thermostats
Trade mark: Pekar (www.tdpekar.ru)
Plans for the future
Customers
Modernization of equipment
AVTOVAZ, GAZ, UAZ, LIAZ, PAZ, KAMAZ
Business opportunities
for Swiss suppliers
Contact person
Special equipment, machinery for modernization
Dmitri Nosanov, President
E-mail: info@bigfilter.com
Source: Public sources, Spark-Interfax agency
Toyota-Boshoku LLC (Japan)
Contact
196626, St.Petersburg
Shushary
1B Lenin str., Building A
Tel: +7 812 331 38 39
Web: www.toyota-boshoku.com/eu
Established in
2007
Number of employees
21 -50 (2012)
RUSSIAN CAR INDUSTRY
117
Annual
production
volume by components
Plans for the future
Customers
Business opportunities
for Swiss suppliers
Contact person
Seats for Toyota Camry, production capacity: 30-40,000 per year.
Enlargement of production capacity for seats up to 100,000 in 2016 by request of Toyota
Toyota
Injection machine and other exclusive equipment for next model change of Toyota Camry
Kenji Shibata, General Director
Natalia Shevtsova, Assistant General Director
E-mail: shevtsova@toyota-boshoku-llc.ru
Source: Public sources, Spark-Interfax agency
Table of other OESs in Northwest Russia
Company
Location
Yura Corporation
(South Korea)
Ivangorod
Establi
shed in
2010
PKF Sirius
(www.prugina.ru)
St. Petersburg
1997
ZAO Plata
(www.plaza.spb.r
u)
Vologda Bearing
Factory
(www.vbf.ru)
CBD
(www.cbd.ru)
St. Petersburg
Contact
OEM clients
Hyundai
Olga Arinicheva
Components for
automotive brake
systems
Suspension springs
1992
Anatoli Petrov
Shock absorbers
UAZ, GAZ, KAMAZ
Vologda
1967
Alexey Melnikov
Bearings
VAZ, GAZ, UAZ, ZIL, MAZ,
KAMAZ, etc.
St. Petersburg
1995
Unknown
Exhaust systems,
silencers
AVTOVAZ
Hors-Silikon
(www.horssilikon.ru/english)
St. Petersburg
1994
Alexey Mikhailov
Wiper brushes, highvoltage ignition wires,
belts and seals
AVTOVAZ, MAZ, KAMAZ
Konis
(www.konis.ru)
St. Petersburg
1998
Nikolai Panteleev
Fuel, oil cleaning filters
AVTOVaz, Gaz, KAMAZ,
MAZ,
LTO-Plastic
(www.lto-plast.ru)
St. Petersburg
2006
Andrey Jagubtsov
Injection moulding
plastic parts, mould
making
Unknown
PressFormLLC
St. Petersburg
2010
Dmitry
Bakhmatov, Maris
Lasmanis
Production of exhaust
silencer, dies, injection
moulds for aluminium
and plastic casting
AVTOVAZ, Eberspä-cher
Exhaust Systems RU
OOO MP Credo St. Petersburg
(www.credorti.ru)
Source: Public sources
1989
Rafail Galeev
Seals, rubber bushings,
rubber products
AvtoVAZ
RUSSIAN CAR INDUSTRY
118
Li On Sog
Product range
AVTOVAZ, GAZ
10.6. SUPPORT MEASURES OF THE ST. PETERSBURG GOVERNMENT
The investment climate of St. Petersburg was rated in 2012 as follows:



Fitch Ratings BBB (robust wealth and economic indicators, sound budgetary performance, CapEx flexibility, sound
cash position and low debt)
Standard & Poor’s BBB (low debt, high liquidity level, good financial indicators)
Doing Business 2012: 1st place among Russian regions on ease of starting a business
The authorities view the automotive cluster as a field for strategic investment.
According to St. Petersburg Law On Tax Concession No. 81-11 of 14 July 1995 the following tax concessions are available for
industrial investors with Manufacturing activities: cars and auto components56:
For investments totalling over $500 million during 3
years
For investments totalling over $26 million during 3
years
For investments totalling over $1.6 million during 3
years
For investment projects realized within Special
Economic Zone (SEZ) of St. Petersburg
For industrial enterprises
located in St. Petersburg
Reduced tax rate for profits tax to 13.5% for enterprises with
property registered in
St. Petersburg.
Reduced tax rate for profits tax to 15.5%, property tax exemption.
Reduced tax rate for profits tax to 15.5% for enterprises producing
electronic equipment and devices.
Exemption from property, land and transport tax, reduced tax rate
for profits tax to 15.5%, reduced insurance fees to 14%, free custom
zone.
Reduced land tax rate to 1.25% of the land cadastral value.
Industrial parks:
Shushary industrial zone
OEMs: Toyota, General Motors, Scania-Peter, MAN
Kamenka industrial zone
OEMs: Nissan, Hyundai
Maryino industrial zone
OEMs : Yarovit / Yo-Auto
10.7. SUPPORT MEASURES OF THE LENINGRAD OBLAST GOVERNMENT
The investment climate of the Leningrad Oblast was rated in 2013 as follows:


Fitch Ratings BB+
Standard & Poor’s BB+
To promote the industrial investment activities in 2012 a new law Law No. 113-oz On State Support for Organizations
Investing on the Territory of Leningrad Oblast and on Related Legislative Amendments was introduced57:
56
57
For more information see: www.doingbusiness.ru and www.spbgapi.ru
Source: Baker & McKenzie – CIS, St. Petersburg
RUSSIAN CAR INDUSTRY
119
According to oblast Law No. 113-oz, the corporate profits tax rate payable to the Leningrad oblast budget will be 13.5% (down
from 18%) and investors will be exempt from property tax for investors engaging in activities covered by this law. Irrespective of
the term of investments' recoupment, the tax incentives will be granted to companies for terms of 16 - 32 consecutive quarters
depending on the total sum of investment (from 300 million roubles to 3 billion roubles and more) made within any three
calendar years starting from January 1, 201258.
10.8. SUPPORT MEASURES OF THE KALININGRAD OBLAST GOVERNMENT
All of Kaliningrad oblast has constituted a Special Economic Zone (SEZ) since 1996. With the Federal Law on the Special
Economic Zone in the Kaliningrad Region of 10.01.2006 the SEZ was renewed for 25 years until 203159.
The SEZ proposes the following tax preferences to SEZ residents:
Profit tax
Property tax
General
20%
2.2%
SEZ
0% during the first 6 years; ½ of the current rate
from the 7th until 12th year
There are following state guarantees to SEZ residents:
Rental fee for the land plot will remain the same during the whole period of the lease contract
Foreigners may use a simplified procedure for obtaining visas
Tax guarantees not to increase the resident’s total tax burden
The SEZ has special procedure to bring in and use foreign goods in the SEZ until 2016. There is a custom free zone with 0% for
import duty/VAT for goods coming in and duty when taking out products after processing in the custom free zone, e.g.
automotive components.
The strategy of local authorities was largely successful to build up an automotive cluster in St. Petersburg / Leningrad oblast.
First car manufacturers were attracted and later the producers of spare parts. The new automotive cluster is now being formed.
The goal is reaching an annual car output of about 1 million vehicles with total investment in care plants of 1.3 billion USD by
2018. Whereas most OEMs are located in St. Petersburg’s industrial zones, most tier-1 spare part suppliers are located in the
Leningrad oblast. With a share of 32.6% of all foreign tier-1 OESs Leningrad oblast holds the first place in Russia, and with 9%
of all local Russian spare parts producers the third place.
11. OEMs outside the clusters
Although the automotive industry in Russia is concentrated mainly within the three clusters mentioned above there is a certain
number of projects, which are located elsewhere. Some of them are linked to big Russian companies like AVTOVAZ in Togliatti,
others to foreign producers. The most important car, bus and truck producers are presented in the company profiles below.
Among the projects, the production facilities of Sollers in the Far East of Russia should be highlighted, as it is often referred to
as the fourth automotive cluster in Russia. It contains the Sollers owned Sollers Far East producing SsangYong SUVs and the
joint ventures Sollers Bussan (with Mitsui & Co) producing Toyota cars and Mazda Sollers. But as Japanese and Korean cars
consist mostly of components from Asia, we decided not to present this cluster in an individual chapter, as the business
opportunities for Swiss suppliers are rather limited.
58
59
For more detailed information see: http://lenoblinvest.ru/en/gov-support/tax-benefits.html
For more information see: http://www.investinrus.com/ and www.kgd-rdc.ru/en/Special%20Economic%20Zone/
RUSSIAN CAR INDUSTRY
120
Nevertheless it is an important factor for the Russian automotive sector and for the local industry. Total Sollers production in
Vladivostok in 2013 is expected to be 70,000 vehicles, including Mazda and Toyota cars, in the future the production should be
increased to 100,000 cars. More than 3,000 people have been employed in the region because of the automotive industry and
according to estimates of the Ministry of Industry and Trade about 1,500 new jobs will be provided by manufacturers of
automotive components.
The automotive production in the Far East of Russia is heavily subsidized by the Russian administration. 100% of the rail
transportation fee between the Far East and European Russia is recompensed by the Ministry of Industry.
Avtomobilniy Zavod Ural
Contact data
456304 Chelyabinskaya oblast,
Miass,
Avtozavodtsev prosp., 1,
Tel: + 7 (3513) 29 78 94, 57 12 44
E-mail: gdural@mail.uralaz.ru
Web: www.uralaz.ru
Established in
1942
Number of employees
About 6000
Annual production
volume by models
2012: 7,034 trucks
Localization rate by
models
Local Brand
Plans for future
To establish a strategic partnership with one of the world leading truck manufacturers,
development and production of Euro-4 and -5 vehicles, to develop vehicles according to
European quality standards but 15-20% cheaper, introduction of world renowned components
Suppliers producing in
RF
ZF, Raba, Wabco, Knorr-Bremse, Hella, Eberspächer
Business opportunities
for Swiss suppliers
In order to make its trucks more competitive the company has integrated several components
of foreign producers (see above). According to their annual report 2012 they want to introduce
further high quality components.
Contact person
Nikolay Ivanovich Kraynov, Director for Production
Tel: + 7 (3513) 29 10 16
Andrey Gennadievich Belov, Procurement Director
Tel: + 7 (3513) 29 78 94
Source: Public sources, Spark-Interfax agency
ChechenAvto
Contact data
RUSSIAN CAR INDUSTRY
121
366310 Chechenskaya respublika,
Argun,
Ul. Dzerzhinskogo, b/n
Tel: +7 (8714) 72-27-81
Fax: +7 (8714) 72-27-81
E-mail: chechenauto@mail.ru
Web: www.chechenavto.com
Established in
2008
Number of employees
About 150
Annual production
volume by models
1,500 cars
Localization rate by
models
Genuine Russian Brand
Plans for future
To increase the output and to produce components as filters, mufflers and brake blocks
Foreign Suppliers
n.a.
Business opportunities
for Swiss suppliers
Currently the plant is cooperating very closely with AVTOVAZ. There are plans to increase the
output and establish the production of components, but so far due to the difficult economic
situation they could not be realized.
Contact person
Sayd-Husayn Taymaskhanov, General Director
Source: Public sources, Spark-Interfax agency
Derways
Contact data
369000 Karachaevo-Cherkesskaya respublika
Cherkessk
Shosseinaya ul. 15,
Tel: +7 (8782) 20-30-24
Fax: +7 (8782) 20-30-24,
E-mail: referent@derways.ru
Web: http://www.derways.ru
Established in
2003
Number of employees
2,000
Annual production
volume by models
About 70,000 cars of the brands Lifan, Geely and Haima
Localization rate by
models
Today locally produced: batteries, wheels, circular plates, tires
Plans for future
Production volume 150,000 cars in 2015
Suppliers producing in
RF
n.a.
Business opportunities
for Swiss suppliers
As the company cooperates closely with Chinese car producers and plans to further localize the
production, there are hardly any business opportunities for Swiss suppliers
Contact person
Khadzhi-Murat Derev, President of the Company
Plan to produce locally: seats, instrument panels, bumpers, mufflers, die-stamping
Source: Public sources, Spark-Interfax agency
Kuzbasauvto
Contact data
RUSSIAN CAR INDUSTRY
122
652571 Kemerovskaya oblast
Leninsk-Kuznetski raion
Drachenino
Ul. Yubileinaya, d 1 B
Tel: +7 (3842) 77-34-78, 77-34-79
+7 951 182 4040
E-mail: bus@kuzbasavto.ru
Web: http://www.kuzbasavto.ru
Established in
2010
Number of employees
250-500
Planned annual
production capacity
2,000 buses, 2,000 trucks
Localization rate by
models
Genuine Russian brand
Plans for future
To increase the production capacity
Foreign Suppliers
n.a.
Business opportunities
for Swiss suppliers
Assembling of Hyundai buses and trucks, no business opportunities for Swiss suppliers.
Contact person
Viktor Minvalievich Miftofutdinov, General Director
Source: Public sources, Spark-Interfax agency
Kurganskiy Avtobusniy Zavod
640008 Kurgan
Contact data
Ul. Avtozavodskaya 5
Tel: +7 (3522) 44-90-42, 44-42-24
Fax: +7 (3522) 44-44-45
E-mail: kavz@kbus.infocentr.ru
Web: http://bus.ru/index.php?option=com_content&view=article&id=51&Itemid=80
Established in
1958
Number of employees
3,300
Annual production
volume by models
2 models of middle sized autobuses: КАVZ-4235 «Avrora» and КАVZ-4238.; current
production volume – n.a.
Localization rate by
models
Genuine Russian brand
Plans for future
To increase the quality; to broaden the product range, especially by developing an autobus
model operating on liquid gas.
Suppliers producing in
RF
Cummins, ZF, Sachs
Business opportunities
for Swiss suppliers
The company develops an autobus which operates on liquid gas
Andrey Gennadevich SUKHAREV, Development Director
Tel: + (7) (3522) 48-72-57
Source: Public sources, Spark-Interfax agency
Contact person
RUSSIAN CAR INDUSTRY
123
Nefaz
Contact data
452680 Republic Bashkortostan
Nevtekamsk
Ul. Yanaulskaya 3,
Tel: +7 34783(20480); 23216,
E-mail: nefaz@nefaz .ru
Web: http://www.nefaz.ru
Established in
1977
Number of employees
More than 1,000
Annual production
volume by models
740 autobuses, 880 crew buses, special trucks
Localization rate by
models
Genuine Russian brand.
Plans for future
The company regularly works on new models and the upgrade of the existing ones.
Suppliers producing in
RF
BP, Cummins, ZF, Voith,
Business opportunities
for Swiss suppliers
In order to make its buses more competitive the company has integrated several components of
foreign producers (see above). The engineers are regularly checking the experience or
integrating other foreign components.
Vladimir Mikhailovich SYUTKIN, Technical Director
Contact person
Tel: + 7 (34783) 2-36-02, 2-26-20, E-mail: syutkin@nefaz.ru
Source: Public sources, Spark-Interfax agency
Sollers Dalniy Vostok (incl. the joint ventures Sollers Bussan und Mazda Sollers)
Contact data
690001 Vladivostok
Ul. Dalzavodskaya, d 2, korp 14
Tel: +7 (423) 2513711
E-mail: fe@sollers-auto.com
Web: www.sollers-auto.com
Established in
2009
Number of employees
More than 1,000
Annual production
volume by models
70,000, planned 100,000 SsangYong Actyon, Actyon Sports, Kyron and Rexton, Mazda and
Toyota Land Cruiser Prado
Localization rate by
models
Assembling of South Korean and Japanese kits
Plans for future
On the base of Sollers Dalniy Vostok the regional administration plans to establish a special
economic zone for the production of automotive components. According to first estimations
this should help increase the localization rate up to 30%.
Suppliers producing in
RF
n.a.
Business opportunities
For companies, which do not already cooperate with Asian suppliers, it is difficult to enter.
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for Swiss suppliers
Contact person
In Vladivostok: Lybov Sergeevna Shapovalova, Head of Procurement Group, Tel: + 7 (423) 251
37 11 (ext.3300)
Sollers headquater:
Alexander Korneychuk, General Director of SOLLERS-Far East (incl. Mazda Sollers and Sollers
Bussan)
Moscow 123317
Testovskaya St. 10
Moscow International Business Centre, Northern Tower
Fax: +7 (495) 228-30-44
info@sollers-auto.com
Source: Public sources, Spark-Interfax agency
Tagaz
Contact data
344006 Rostov–on–Don
Voroshilovsky prospect 2/2
Plant address:
347923, Taganrog, Instrumentalnaya st. 2
Tel: +7 (800) 2002234, +7 (863) 2675915
E-mail: info@tagaz.ru
Web: http://www.tagaz.ru
Established in
1998
Number of employees
Estimated 900
Annual production
volume by models
About 7,000
Localization rate by
models
Genuine Russian Brand, assembling of Hyundai, BYD and Chery cars
Plans for future
The company is bankrupt, there is an external director and the future of the enterprise is
unclear.
Suppliers producing in
RF
Engine licensed by Mitsubishi, many Korean components.
Business opportunities
for Swiss suppliers
As the enterprise is in a very difficult situation, it is probably not ready to negotiate on new
cooperation projects.
Contact person
Artem Sergeevich Evseev, External Director
Source: Public sources, Spark-Interfax agency
Trans-Alfa PLC
Contact data
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160004 Vologda
Belozerskoe shosse 3
Tel: +7 (8172) 21-71-62
Fax: +7 (8172) 76-97-44
E-mail: vologda@trans-alfa.ru
Web: http://www.trans-alfa.ru
Established in
2003
Number of employees
n.a.
Annual production
volume by models
150 buses
Localization rate by
models
Genuine Russian Brand
Plans for future
n.a.
Suppliers producing in
RF
Knorr-Brems, RABA, Camozzi, ZF
On the one hand the company management is aware that they have to improve the quality of
their buses in order to make them more competitive in comparison for instance with the
Belarusian bus producers. High quality European components could help reach this goal. On
the other hand the low price of their products is the main competitive advantage and therefore
they are not ready to spend a lot on external supply.
Andrey Ivanovich KHALIZOV, Chief Engineer for Trolleybuses
Contact person
Tel: +7 (8172) 21 72 36
Sergey Alexandrovich KOLYBIN, Chief Engineer for Autobuses
Tel: +7 (8172) 21 68 93
Source: Public sources, Spark-Interfax agency
Business opportunities
for Swiss suppliers
United Automobile Group, LLC
Contact data
426060 Udmurtiya respublika
Izhevsk
Avtozavodskaya ul. 5
Tel: +7 (3412) 648-103, 648-731
E-mail: 107@izhavto.ru, office@ izhavto.ru
Web: http://www.izh-auto.ru
Established in
2011 on a company first established in 1966
Number of employees
More than 5,000
Annual production
volume by models
48,573, including 24,074 Lada Granta
Localization rate by
models
Russian brand
Plans for future
The company announced to further increase the production capacity up to 350,000 cars/year.
As of 2015 the assembly of foreign brands is planned. There are discussions on the possibility of
establishing an automotive cluster in Udmurtia on the base of United Automobile Group.
Suppliers producing in
RF
Valeo, Behr, Kiekert, Brose, Visteon, АЕ, Saturno, TPV, Bosch, Hella Auto Technic,
Eberspächer, Mando
Business opportunities
for Swiss suppliers
Suppliers should apply to the AVTOVAZ headquarter in Togliatti
Contact person
Alexei Alexandrovich Alexeev, General Director
Source: Public sources, Spark-Interfax agency
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12. Events and media
Trade Fairs and Conferences
Type
Description
Location
Timing
Exhibition &
Conference
AUTOPROM Russia (International specialized conference and
exhibition organized by Restec company) Automotive Production,
Components and Technologies
http://www.ptfair.ru/ex-auto.ru.html, www.autopromrussia.ru
St. Petersburg,
Lenexpo
Fairgrounds
12.-14. 03.2014
Exhibition
AutoWorld (International Motor Show organized by Farexpo JSC)
http://www.farexpo.ru/auto/exhibition/about/
St. Petersburg,
Sportivno
Konzertniy
Kompleks
Exhibition &
Conference
Exhibition
Exhibition
Exhibition
Russian Automotive Forum (organized by Adam Smith
Conferences) international gathering for the Russian automotive
industry
http://www.adamsmithconferences.com/event/automotive-industryrussia
MIMS powered by Automechanika Moscow, organized by ITE and
Messe Frankfurt companies, International Trade Fair for Automotive
Parts, Components, Accessories and Aftermarket Industry
http://mims.ru/
Interauto - MIAS (organized by Crocus Expo International Exhibition
Center and IMAG) Cars, Automotive Components, Garage Service
Equipment, Disks, Tires, Car Care Chemistry, Paint-and-Lacquer
Materials, Oils, Car Electronics, Security Systems and Accessories
http://www.mas-expo.ru/mas/, www.interauto-expo.ru
MIAS (Moscow International Automobile Salon organized by the
Association of Russian Carmakers NP and the Crocus Expo
International Exhibition Centre) Most important Autoshow in Russia.
Exhibition for Cars, Commercial Vehicles, Motorcycles, Caravans, Parts
and Accessories
http://www.mas-expo.ru/mas/
Internet sites and Journals
http://eng.autostat.ru/ (English)
http://www.napinfo.ru/en (English)
http://v2009.minprom.gov.ru/activity/auto (Russian)
http://expert.ru/magazine_auto/ (Russian)
http://www.auto-component.ru/ (Russian)
http://maks-m.com/autocomponents (Russian)
http://www.mashin.ru/eshop/journals/avtomobilnaya_promyshlennost/ (Russian)
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09.-13.
04.2014
Moscow
World Trade
Centre
18.-20.
03. 2014
Moscow
Expocentr
25. – 28.
08.2014
Moscow
Crocus Expo
28.-31. 08.2014
Moscow
Crocus Expo
27.08. 07.09.2014
13. Important adresses
Automotive Components Committee
Association of European Businesses
Olga Zarubina (Johnson Controls International)
Chairman
Elena Rothman
Coordinator
Tel. +7 (495) 234 2764
Fax. +7 (495) 234 2807
Elena.Rothman@aebrus.ru
http://www.aebrus.ru/committees/industrial/automotive/
Department of Automotive Industry and Agricultural Engineering
Ministry of Industry and Trade
Alexey L. Rakhmanov
Director
Tel:+7 (495) 632-85-13
Fax: +7 (495) 632-85-15
Email : fedorkova@minprom.gov.ru
http://www.minpromtorg.gov.ru/
Napak – National Association of Automotive Components Manufacturers
Mikhail Vladimirovich Blokhin
General Director
Tel.:+7 (499) 973 01 76
Fax:+7 (499) 973 13 49
Address: 127018, Russia, Moscow, Sushevsky val, 5, bld. 2
E-mail: napak@mail.ru; napak.russia@gmail.com
http://napak.ru
St. Petersburg Association of Manufactures of Automotive Components (SPbAPAC) Support the forming of a cluster
of automotive manufacturers in Northwest Russia. Lobby work done for the interest of the automotive component industry.
V.P. Kiselevich
President
Phone/fax: +7 (812) 313-8254
E-mail: apac@spbapac.ru
http://spbapac.ru
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14. Conclusions / Recommendations
The current localization process of international car manufacturers in Russia opens several business opportunities for Swiss
producers of automotive components and equipment for the automotive sector. The main goal of the Russian authorities is to
boost the local production. Due to high investment costs this is probably not the first option for Swiss SMEs, especially if they
have not been introduced to the Russian market so far and have no order commitment from the part of the car producers in
Russia.
But the localization of OEMs & OESs along with the restructuring and modernization of the Russian automotive OES sector and
the horizontal specialization offer also some interesting export options:
High-tech components, which are needed in smaller quantities, can be supplied from Switzerland. However, the international
car suppliers rely for imports almost solely on trusted partners from whom they already buy components for their production in
other countries. Russian automotive producers willing to increase the quality of their cars might be more open for new
products.
The demand for imported tier 2 and tier 3 components will rise within the next year, as the localization of tier 1 components
production will gain ground in Russia. Here again, international companies will probably rely on proven business relations, but
joint ventures or innovative Russian companies could be more interested in new offers.
For machinery manufacturers all new investment projects are of particular interest – be it for car or component production.
Special machinery, modernization of equipment, increasing productivity through automation solution will be demanded as well
as infrastructure design, project management and engineering services.
Timetable of market opportunities in Russian automotive market:



Short-term: aftermarket for spare parts, delivery of specific components from Switzerland directly or via partner
services, motorsport, cosmetic for automotive
Medium-term: technology partnership with local OEMs/OES, production modernization and quality component
manufacturing with further localization
Long-term: JV or local assembly and improving product quality
In order to be successful and win new business partners in the Russian market, the following competences are particularly
important:



Local presence either with a subsidiary, a representative office or through a reliable partner
Good functioning logistics, generally more important than in the West
Customer training
In general, personal contacts with potential clients and decision makers are likely to take much more time than in European
countries. Detailed information material in Russian will also be necessary to convince your business partner.
The Swiss Business Hub Russia will be glad to consult and support you in all questions related to doing business in and with
Russia.
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