PASSENGER CAR COMPONENT AND SPARE PART MARKET IN RUSSIA JUNE 2018 Addressed to marketing experts, analysts, directors and managers involved in automotive business From corporate author AUTOSTAT analytic agency offers the report E.g. the report includes data, abstracting from the “Passenger car component and spare part market situations when some car owners delay oil change in Russia”, covering the results of 2017. or bad part repairs trying to save costs, or when if The report contains three parts. The first part winter is not very cold, the car owners could use car deals with general characteristics of the Russian with old batteries or worn tires. passenger car market and includes data on their Having forecasted the parc in Russia for the end production, import and sales. Moreover, it contains of the year, we evaluated market capacity in 2018. data on passenger car parc in Russia, its age, After the evaluation of spare part service lives the brand and regional structure. Phases of the Russian capacity was calculated for all major segments of automotive component market formation, its the aftermarket. trends and development prospects are included as Totally we calculated tens of components, separate pages. which were subdivided into 18 product groups. The second part, which is also the main, The report includes total evaluations in terms of contains information on capacity of the spare part numbers (units or complete sets) and in terms of aftermarket, its regional and brand structure. We money (USD) for each component, for groups of should mention that each group of components spare parts and for the market for several years, is presented with relevant characteristics and including forecast for the current year. calculations here. Marketing report “Passenger car component Information on large distributors of a wide and spare part market in Russia” was prepared with range of spare parts for passenger cars in Russia is an office research method. The major information included in the third part. sources are our own databases and information Please note that we evaluated component obtained from the market players directly. The and spare part aftermarket for passenger cars structure of the information presentation and the only. We should also mention that our methods calculation principles are developed by AUTOSTAT are based on the size and the structure of specialists. Nevertheless, they are all based on passenger car parc. fundamental principles of market capacity The numbers reveal the real market needs for calculation, common in the world practice. spare parts in order to maintain vehicles in good All data presented in the report is clearly repair in normal economic situation, without taking organized, compiled in tables and illustrated with into consideration temporary and season changes. graphs and diagrams if necessary. We appreciate your recommendations on the report improvement. Please email your wishes at [email protected] Best regards to all colleagues, Aleksey Tikhonov, Project manager, AUTOSTAT. CONTENTS GENERAL CHARACTERISTICS OF THE MARKET, TRENDS AND PROSPECTS Passenger car production in Russia . 5 Passenger car import in Russia . 6 Passenger car market in Russia . 7 Model structure of the russian market . 8 Age structure of passenger car parc in Russia . 9 Brand structure of passenger car parc in Russia . 10 Regional structure of passenger car parc in Russia . 11 Phases of the russian automotive component market formation . 12 Trends and prospects of automotive component market in Russia . 13 – 14 EVALUATION OF AUTOMOTIVE COMPONENT AND SPARE PART MARKET CAPACITY Characteristic and evaluation of aftermarket capacity . 16 Regional capacity of aftermarket . 17 Aftermarket capacity by brands . 18 Methods of calculation and critical parameters . 19 Automotive tires . 20 Automotive batteries . 21 Front body parts . Exterior parts . 22 Automotive oil and lubricants . 23 – 24 Automotive filters . 25 – 26 Brake system parts . 27 – 28 Suspension units and parts . 29 – 30 Steering units and parts . 31 – 32 Clutch units and parts . 33 – 34 Transmission units and parts . 35 – 36 Fuel system units and parts . 37 – 38 Exhaust system units and parts . 39 – 40 Ignition system units and parts . 41 – 42 Cooling system units and parts . 43 – 44 Electronic engine control units and parts . 45 – 46 Electric equipment units and parts . 47 – 48 Engine overhaul parts . 49 – 50 Driving belts . 51 – 52 SPARE PART DISTRIBUTORS Profiles of spare part dealer companies . 53 – 61 GENERAL CHARACTERISTICS OF THE MARKET, TRENDS AND PROSPECTS Passenger car production in Russia . 5 Passenger car import in Russia . 6 Passenger car market in Russia . 7 Model structure of the russian market . 8 Age structure of passenger car parc in Russia . 9 Brand structure of passenger car parc in Russia . 10 Regional structure of passenger car parc in Russia . 11 Phases of the russian automotive component market formation . 12 Trends and prospects of automotive component market in Russia . 13 – 14 Passenger car comPonent and sPare Part market in russia MARKETING REPORT PASSENGER CAR PRODUCTION IN RUSSIA In 2017 automotive enterprises in Russia Derways plant in Cherkessk grew by 9% up (6.8 thousand vehicles; +10.2%), as well assembled 1.34 million passenger cars – that to 18.1 thousand vehicles. Ulyanovsk auto- as LADA Sport (2.8 thousand vehicles; is 20% more than a year ago. So, the positive mobile plant decreased its production to +0.3%) and Super-Auto (315 vehicles; production dynamics was registered for the first 18.8 thousand SUVs (-23.7%). Production +96.9%) in Togliatti. The list of auto- time after four years of decline. Last year, the decline was also registered by PSMA Rus motive manufacturers also included new share of domestic manufacturers decreased a plant in Kaluga, where 16 thousand Peugeot, automobile plants, where Chinese vehicles little to 22.7%. That is 303.8 thousand passenger Citroen and Mitsubishi vehicles were assem- are assembled: Lipetsk Mechanical Plant, cars in terms of numbers. So the share of foreign bled (-8.4%). which produced 2 thousand Changan CS35 brands is 77.3% or 1.33 million vehicles. We should also mention enterprises, crossovers, and Stavropol-Avto, which AVTOVAZ, which increased its passenger which assemble vehicles out of AVTOVAZ manufactured 1.4 thousand DW Hower car production by 18.6% up to 303 thousand knock-down kits: Chechenavto in Argun H3 SUVs. vehicles in 2017, remains the leader of the Russian automotive industry. We should mention that the production growth at the Togliatti automobile Dynamics of passenger car production in Russia in 2012 - 2017 (th. un.) plant was provided by LADA models, exept for Share of RussianShare cars of foreignShare cars of foreign carsShare of domesticProduction brands (Chg ., %) the Priora sedan, as well as contract assembly 2,5002500 of foreign vehicles for Renault Nissan Alliance. 1,967.3 Hyundai Motor Manufacturing Rus plant in St. 1,902.8 (12 .5%) (-3 .3%) Petersburg set up its new record last year – 233.5 2,0002000 1,661.4 thousand Hyundai and KIA vehicles (+12.8%). (-12 .7%) 1,337.0 (+20 .0%) The enterprise started production of the new 1,5001500 1,210.8 generation Hyundai Solaris and KIA Rio sedans, (-27 .1%) 1,114.3 68.4% (-8 .0%) as well as the KIA Rio X-Line crosshatch. The third 75.9% place was taken by Avtotor plant in Kaliningrad 1,0001000 79.6% 77.3% with 137.7 thousand passenger cars assembled 76.6% 76.5% (+ 41.8%). KIA vehicles remain the most numer- 500 ous models at the assembly line of the com- 31.6% 24.1% pany. In 2017, Volkswagen Group Rus plant in 20.4% 23.3% 23.5% 22.7% 0 Kaluga increased its production by 7.7% up to 2012 2013 2014 2015 2016 2017 118.5 thousand Volkswagen and Skoda vehicles. LADA Izhevsk is still on the fifth place with 117.6 thousand vehicles (+ 22.5%). Last year, Izhevsk Automobile Plant started production of the LADA Passenger car production in Russia in 2012 - 2017 (un.) Vesta SW estate car and its off-road version – Manufacturer 2012 2013 2014 2015 2016 2017 Chg., % the LADA Vesta SW Cross. Then comes Renault Russia plant in Moscow AVTOVAZ 550,799 451,289 433,921 346,834 255,538 303,033 18 .6 with 99.2 thousand vehicles (+33.8%). Hyundai Motor Manufacturing Rus 224,420 229,400 237,000 229,500 207,000 233,500 12 .8 66.7 thousand Toyota Camry sedans and Avtotor 249,635 242,797 181,696 91,673 97,108 137,703 41 .8 RAV4 crossovers were assembled at Toyota Volkswagen Group Rus 179,922 156,420 125,128 96,831 110,000 118,500 7 .7 Motor plant in St. Petersburg -70.7% more than in LADA Izhevsk 44,818 57,771 74,607 72,952 95,967 117,584 22 .5 2016. Gorky Automobile Plant increased contract Renault Russia 166,845 198,546 150,703 73,633 74,110 99,181 33 .8 Toyota Motor 28,441 35,685 36,617 32,882 39,061 66,684 70 .7 assembly for Volkswagen Group Rus by 32.1%, GAZ 6,000 48,125 74,878 41,691 37,070 48,971 32 .1 having produced 49 thousand Volkswagen and Nissan Manufacturing Rus 43,547 47,105 31,402 33,822 36,464 45,827 25 .7 Skoda vehicles. Nissan Manufacturing Rus plant Ford Sollers 115,325 89,300 50,732 35,282 38,596 43,531 12 .8 in St. Petersburg assembled 45.9 thousand GM-AVTOVAZ 62,981 57,939 45,067 34,218 32,104 32,909 2 .5 Nissan Qashqai, X-Trail and Murano crossovers Sollers 36,380 69,736 67,581 31,823 24,110 24,089 -0 .1 (+25.7%). Ford Sollers enterprises produced 43.5 Derways 47,911 49,016 24,066 16,227 16,602 18,091 9 thousand passenger cars and SUVs (+12.8%) UAZ 32,388 26,835 25,356 27,793 23,602 18,008 -23 .7 PSMA Rus 40,700 45,113 45,203 25,733 17,415 15,957 -8 .4 and took the tenth place.