PASSENGER COMPONENT AND SPARE PART MARKET IN

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 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 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. auto- as 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 . 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 , as well as contract assembly 2,5002500 of foreign vehicles for 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 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 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 plant in 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, 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. 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 SW Cross. Then comes plant in 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 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 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. Chechenavto 1,070 793 82 2,822 6,199 6,833 10 .2 JV GM-AVTOVAZ manufactured 32.9 thou- 0 523 2,643 3,271 2,836 2,845 0 .3 sand Niva SUVs in 2017 (+2.5%). Lipetsk Mechanical Plant 0 0 0 0 365 2,000 447 .9 Sollers plant in the retained its Stavropol-Avto 0 0 0 0 0 1,400 - production volume at the level of 2016, having Super-Auto 7,409 6,033 851 569 160 315 96 .9 assembled 24.1 thousand Mazda6 and Mazda Other 128,708 90,397 53,856 13,289 0 0 - CX-5 vehicles. Production of Chinese vehicles at Total 1,967,299 1,902,823 1,661,389 1,210,845 1,114,307 1,336,961 20

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Passenger car import in Russia

In 2017 passenger car import in our Dynamics of passenger car import in 2007 – 2017 (th. un.) country stabilized and even increased by New vehicles Used vehicles 0.5% or about 1,000 vehicles for the first 2,500.02500 time during the last five years. This little 1,992.8 but positive dynamics was provided by used (+24 .5%) vehicles. Their share increased by 1.2% up to 2,000.02000 7.9% or 18.5 thousand vehicles in 2017. As 1,601.0 we can see, the share of used vehicle import (+52 .5%) has been growing for three years in succes- 1,500.01500 sion and has reached this considerable level 941.4 994.3 (about 8%) for the first time since 2009. (+46 .8%) (+5 .6%) 800.4 1,000.01000 In 2009, due to stocks unsold in 2008 641.5 (-19 .5%) 610.0 and the rise in car import duties, the volume 489.9 (+30 .9%) (-23 .8%) of car import to Russia dropped to 490 (-75 .4%) 500.0500 299.6 234.1 235.1 thousand vehicles. The structure of import (-50 .9%) (-21 .9%) (+0 .5%) also changed dramatically: import of used cars decreased tens of times, and their 00 share in the total import became less than 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2%. As the market recovered the car import began to grow again, but it was far behind Total New Used vehicles Year the pre-crisis level. Moreover, many foreign th. un. th. un. share, % th. un. share, % manufacturers launched their enterprises in Russia, increasing foreign vehicle produc- 2007 1,601 1,231 76 9 . 370 23 .1 tion every year. 2008 1,992 .8 1,592 .8 79 9 . 400 20 .1 In 2012 passenger car import came up to 2009 489 .9 481 .8 98 3 . 8 .1 1 .7 almost 1 million vehicles and in August it had 2010 641 .5 631 .9 98 5 . 9 .6 1 .5 reached its maximum since December 2008. 2011 941 .4 929 .9 98 8 . 11 6 . 1 .2 Then 121,300 vehicles were imported to 2012 994 .3 976 .1 98 2 . 18 1 . 1 .8 Russia. Due to imposition of utilization duty 2013 800 .4 785 .8 98 2 . 14 6 . 1 .8 2014 610 .0 599 .3 98 2 . 10 8 . 1 .8 from 1 September 2012, the importers tried 2015 299 .6 292 .6 97 6 . 7 .1 2 .4 to import as many vehicles with previous 2016 234 .1 218 .3 93 3 . 15 7 . 6 .7 duty rates as possible. 2017 235 .1 216 .7 92 1 . 18 5 . 7 .9 After that car import was decreasing Source: AUTOSTAT evaluation based on Russian SCC information. steadily except for September 2013 (due to low comparative base) and August 2016. Dynamics of passenger car import in 2010 – 2017 (th. un.) Last year also started with import decline, but in June the positive dynamics 140 Monthly import, th. un. was registered for the first time and by 120 Autumn the import started to grow. As a Trend line result, according to Federal Customs service 100 of Russia, companies imported 235.1 thou- 80 sand passenger cars. 60 40 20 0 2010 2011 2012 2013 2014 2015 2016 2017

Month 2010 2011 2012 2013 2014 2015 2016 2017 Chg., %

January 15 .2 59 .2 53 4 . 44 .9 39 .2 23 6 . 10 .3 10 -3 February 28 .6 57 .5 66 7 . 63 .8 51 .3 24 9 . 17 .1 11 .1 -35 March 38 .5 81 .3 93 5 . 85 69 4 . 38 .8 21 .2 19 .1 -10 April 47 .3 84 .6 90 81 .5 69 25 4 . 24 .1 16 .6 -31 May 53 .1 87 .5 99 .3 70 61 20 .8 20 4 . 19 .4 -5 .2 June 57 71 .4 89 .8 62 .5 48 .1 21 17 4 . 20 .3 16 .8 July 56 81 .5 98 .4 66 .6 50 .2 22 .7 21 9 . 21 .7 -1 .2 August 67 .6 71 .3 121 3 . 66 .7 43 .1 20 1 . 21 .1 16 .5 -21 .9 September 67 .1 76 .7 60 9 . 64 .1 44 .2 25 4 . 23 .6 24 .1 2 .3 October 71 .7 98 .8 77 8 . 66 .4 45 .3 26 6 . 20 .3 24 .8 22 .1 November 77 .1 95 .4 74 8 . 69 .2 43 .4 24 7 . 19 .6 25 .8 31 .9 December 62 .4 76 .3 68 3 . 59 .8 45 .9 25 6 . 17 .1 25 .8 50 .8 Total 641.5 941.4 994.3 800.4 610.1 299.6 234.1 235.1 0.5 Source: data of Federal Customs Service

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Passenger car market in Russia

In 2017 the sales of the leaders of the Russian automotive market continued to grow. Structure of Russian market The sales of LADA, which is unreachable for its foreign competitors, increased by 17% up to 300,000 vehicles. As a result AVTOVAZ market share grew by 0.9% up to 20.5%. The LADA 20 .5% share of the leader among foreign brands – South Korean KIA – grew as well. Today every KIA 12 .3% eighth vehicle sold in our country belongs to this brand. Last year the demand for KIA grew LADAHyundai 20,5% 10 .6% by 21.6% and exceeded 180,000 vehicles. Hyundai, which is on the third place, increased its KIARenault 12,3% 9 .2% sales by 8.7% up to 156,600 vehicles. However, as the total market grew by 12.3%, it was HyundaiToyota 10,6% 6 .4% not enough to retain its market share – it reduced by 0.4% to 10.6%. Renault 9,2% ToyotaVolkswagen 6,4% 6 .2% Renault, which is on the fourth place, continues to increase its share in the market. The VolkswagenNissan 6,2%5 .2% 2017 French company sold 136,400 vehicles, that is 16.8% more than a year ago. 2017 NissanSkoda 5,2% 4 .2% Stable sales were not enough to retain Toyota’s share in the growing market; it reduced SkodaFord 4,2% 2 .8% by 0.8%. The Japanese brand took the fifth place having sold 94,200 vehicles (-0.1%). Ford 2,8% Mercedes-BenzMercedes-Benz 2,4% 2 .4% We should also mention that the TOP-5 generates 59% of the Russian passenger car market. ChevroletChevrolet 2,2% 2 .2% German Volkswagen, whose sales increased by 20.3% having exceeded 90,000 vehicles, BMWBMW 2% 2% is still on the sixth place. It is followed by Japanese Nissan with about 8% sales growth up MazdaMazda 1,8% 1 .8% Прочие 14,2% to 76,000 vehicles. The sales of Skoda grew by 12.5% up to 62,300 vehicles. American Ford Other 14 .2% increased its market by 10.4% up to 40,800 cars. Mercedes-Benz (35,400 cars; -1%) is still on the tenth place. We should also mention Chevrolet and BMW, whose market shares were not less than 2%. As we can see, the situation in the Russian market is changing dramatically. If only 5 brands of the TOP-30, which generates almost 90% of sales, had positive dynamics a year ago, 21 brands increased their sales last year.

Sales of new passenger car in 2012 – 2017 (un.)

Brand 2012 2013 2014 2015 2016 2017 Chg., %

LADA 536,629 446,151 376,804 261,775 258,008 301,979 17 .0 KIA 187,330 198,018 195,691 163,500 149,567 181,947 21 .6 Hyundai 172,152 180,029 178,902 160,527 144,050 156,580 8 .7 Renault 188,089 207,849 191,698 119,294 116,797 136,396 16 .8 Toyota 152,340 154,382 161,442 97,978 94,291 94,165 -0 .1 Volkswagen 170,313 162,211 133,571 80,075 75,825 91,250 20 .3 Nissan 153,383 145,802 161,479 90,877 70,464 76,000 7 .9 Skoda 99,062 87,456 84,437 55,012 55,386 62,302 12 .5 Ford 118,873 92,908 56,991 34,604 36,914 40,760 10 .4 Mercedes-Benz 37,436 44,376 48,782 40,454 35,730 35,375 -1 .0 Chevrolet 205,042 174,649 123,175 49,765 30,463 32,071 5 .3 BMW 37,515 42,071 35,504 27,486 27,507 30,018 9 .1 Mazda 44,443 43,179 50,716 27,358 21,543 25,910 20 .3 Datsun 0 0 11,414 32,008 18,772 24,510 30 .6 Mitsubishi 74,294 78,747 80,134 35,909 16,769 24,325 45 .1 Lexus 15,653 15,768 19,149 20,224 24,117 23,693 -1 .8 UAZ 32,768 29,244 27,833 26,486 26,226 21,288 -18 .8 Lifan 20,544 27,467 23,619 15,131 17,460 16,964 -2 .8 Audi 33,512 36,150 34,014 25,650 20,705 16,878 -18 .5 Ravon 0 0 0 0 1,811 15,078 732 .6 Land Rover 19,043 21,030 21,148 11,605 9,122 8,883 -2 .6 20,364 15,017 15,421 7,831 5,585 7,011 25 .5 Subaru 14,296 16,831 17,557 6,852 5,638 6,080 7 .8 19,127 19,855 18,139 4,964 4,758 5,905 24 .1 Suzuki 32,684 27,724 19,931 6,540 4,520 5,001 10 .6 Infiniti 9,209 8,677 8,973 5,495 4,517 4,972 10 .1 3,613 3,790 4,707 5,290 4,961 4,578 -7 .7 Peugeot 34,487 26,491 15,653 4,050 2,153 2,930 36 .1 Citroen 27,820 23,992 16,330 4,209 2,661 2,550 -4 .2 Honda 21,512 25,741 20,655 4,622 1,747 2,435 39 .4 Geely 17,566 27,263 18,828 11,617 4,473 2,234 -50 .1 Jaguar 1,506 1,710 1,628 972 2,073 2,173 4 .8 Haval 0 0 0 0 0 1,894 – MINI 2,629 2,800 1,750 1,350 1,360 1,580 16 .2 Changan 0 0 1,144 734 540 1,411 161 .3 2,024 1,513 1,324 1,142 1,274 1,365 7 .1 Jeep 4,704 5,250 8,221 2,057 1,269 1,274 0 .4 Zotye 0 0 0 0 301 1,088 261 .5 Genesis 0 0 0 0 46 1,031 2,141 .3 smart 31 193 368 471 696 934 34 .2 DFM 0 0 0 1,365 1,152 913 -20 .7 FAW 560 4,838 2,164 0 829 553 -33 .3 Foton 0 0 0 16 70 462 560 .0 2,664 1,683 1,686 593 213 391 83 .6 Brilliance 0 0 955 1,202 863 219 -74 .6 Other 245,419 207,133 148,006 47,005 10,408 348 -96 .7 Total 2,758,636 2,607,988 2,339,943 1,494,095 1,313,634 1,475,704 12.3

Source: AEB data, company data

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Model structure of the russian market

A foreign vehicle has been the best selling lost a quarter of its market, and moved down to by 1.9% up to 48,600 sedans, while the sales model in Russia for two years in succession. the fourth place. The share of the South Korean of the second model decreased by 0.4% to This time it was the KIA Rio with 96,700 cars model reduced by a third to 4.6%. The Hyundai 43,800 SUVs. The results of the models at sold, which is 10.3% more than in 2016. The Creta took the fifth place. The demand for the the end of the TOP-10 differ by only some , whose sales grew by 6.8% up best selling in Russia grew 2.5 times hundreds of vehicles. The estate to 93,700 vehicles, took the second place. We up to 55,300 vehicles, which became possible car was bought by 33,600 customers, that is should mention, that the market shares of partly due to the low comparative base (the 14.5% more than a year ago. The these models decreased, as their sales dynam- sales started in August 2016). As a result the increased its sales 1.7 times up to ics is less than the total market dynamics. On share of the model increased by 2% up to 3.7%. 33,300 vehicles and took the ninth place. The the contrary, the demand for the LADA Vesta The Volkswagen Polo and the Renault tenth place was taken by the Toyota RAV4 increased by 40.1% up o 77,300 vehicles. As a Duster, which were neighbors a year ago as with 32,900 vehicles (+14.5%). We should result, the share of the AVTOVAZ model grew well, took the sixth and the seventh places also mention the Chevrolet Niva, three Renault by 1% and exceeded 5%. respectively. Their sales were quite stable and models (Kaptur, Logan and Sandero), the The leader of the previous year – the each model moved one point down during the Skoda Rapid and the LADA 4x4 with not less Hyundai Solaris – sold 68,600 vehicles, having year. The demand for the first model increased than 2% market shares.

The most popular models of cars in Russia (un.) TOP-20 models of cars sales in 2017 (th. un.)

Model 2012 2013 2014 2015 2016 2017 Chg., % Share, % KIA Rio 96.7 KIA Rio 84,730 89,788 93,648 97,097 87,662 96,689 10 3 . 6 .6 LADA Granta 93.7 LADA Granta 121,151 166,951 152,810 120,182 87,726 93,686 6 .8 6 .3 LADA Vesta 0 0 0 2,785 55,174 77,291 40 .1 5 .2 LADA Vesta 77.3 Hyundai Solaris 110,776 113,991 114,644 115,868 90,380 68,614 -24 1 . 4 6. Hyundai Creta 0 0 0 0 21,929 55,305 152 .2 3 .7 Hyundai Solaris 68.6 Volkswagen Polo 69,385 72,565 58,953 45,390 47,702 48,595 1 .9 3 .3 Renault Duster 47,344 83,702 76,138 43,923 44,001 43,828 -0 .4 3 .0 Hyundai Creta 55.3 LADA Largus 14,563 57,641 65,156 38,982 29,341 33,601 14 .5 2 .3 LADA XRAY 0 0 0 0 19,943 33,319 67 1 . 2 .3 Volkswagen Polo 48.6 Toyota RAV4 27,166 39,885 38,919 27,102 30,603 32,931 7 6 . 2 .2 Chevrolet Niva 59,331 53,344 43,441 31,367 29,844 31,212 4 .6 2 .1 Renault Duster 43.8 Renault Kaptur 0 0 0 0 13,926 30,966 122 .4 2 .1 Renault Logan 58,734 50,894 60,434 41,311 29,565 30,640 3 .6 2 .1 LADA Largus 33.6 Renault Sandero 48,632 43,737 36,849 30,221 28,557 30,210 5 .8 2 .0 Skoda Rapid 0 0 19,975 24,547 25,931 29,445 13 .6 2 .0 LADA XRAY 33.3 LADA 4x4 54,656 51,693 42,932 35,312 27,274 29,091 6 7 . 2 .0 Toyota Camry 34,619 32,895 34,117 30,136 28,063 28,199 0 .5 1 .9 Toyota RAV4 32.9 Volkswagen Tiguan 31,272 27,824 22,186 13,176 10,660 27,666 159 .5 1 .9 32,716 33,451 30,606 20,751 19,003 24,611 29 .5 1 .7 Chevrolet Niva 31.2 Skoda Octavia 0 13,663 35,292 21,373 21,759 22,648 4 .1 1 .5 Nissan X-Trail 26,071 27,261 23,573 20,502 17,886 20,626 15 .3 1 .4 Renault Kaptur 31.0 Nissan Qashqai 31,418 36,897 30,907 10,545 18,723 20,223 8 .0 1 .4 119,890 67,960 65,609 35,869 20,982 19,989 -4 .7 1 .4 Renault Logan 30.6 Datsun on-DO 0 0 11,414 23,843 14,565 19,712 35 .3 1 .3 Mazda CX-5 13,063 19,725 24,953 17,681 15,790 18,723 18 .6 1 .3 Renault Sandero 30.2 Mitsubishi Outlander 21,405 26,542 28,969 16,294 11,203 16,828 50 .2 1 .1 Skoda Rapid 29.4 UAZ Patriot 20,159 19,081 21,056 19,950 19,381 15,860 -18 .2 1 .1 9,785 15,704 46,225 25,977 14,879 15,780 6 .1 1 .1 LADA 4x4 29.1 KIA cee'd 23,290 34,981 29,758 19,268 15,081 15,246 1 .1 1 .0 Ford Focus 92,219 67,142 27,860 11,096 11,973 15,086 26 .0 1 .0 Toyota Camry 28.2 125,951 57,683 47,818 28,507 17,553 15,002 -14 .5 1 .0 Nissan Terrano 0 0 10,842 11,425 11,396 13,807 21 .2 0 .9 Volkswagen Tiguan 27.7 Toyota LC Prado 17,186 14,519 17,369 14,901 14,516 13,755 -5 .2 0 .9 Ford Kuga 4,192 11,984 15,713 7,093 8,396 12,954 54 .3 0 .9 KIA Sportage 24.6 4,617 3,606 2,880 3,096 6,286 12,822 104 .0 0 .9 Other 1,454,315 1,272,879 1,008,897 488,525 345,981 360,744 4 .3 27 .3 Skoda Octavia 22.6 Total 2,758,636 2,607,988 2,339,943 1,494,095 1,313,634 1,475,704 12.3 100.0

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Age structure of passenger car parc in Russia

In 2017, passenger car parс in Russia was 42.39 million vehicles. Age structure of the parc (as of 01.01.18) We should mention that the average age of the automotive parc in Russia LADA is quite high. Over a half or 54.3% of the total parc comes from the vehicles LADA over 10 years old (manufactured before 2008). That is 23 million vehicles in 2017 2.0% terms of numbers. The share of passenger cars produced in 2008 – 2010 is 2016 1.7% about 14% of the parc (5.85 million vehicles). 2015 Over 23% of the registered vehicles or 9.78 million units are vehicles from 1.9% 4 to 7 years old. Passenger cars manufactured in 2015-2017 generate less than 2014 2.3% 9% of the parc or 3.75 million vehicles. 2013 3.0% Less than 40% of cars in the country are of domestic brands. LADA is 2012 3.5% the undisputed leader among them. Currently, it generates about 33% of the 2011 3.9% Russian parc, i.e. there are 13.87 million cars with rook brand in the country. 2010 In general, the parc of VAZ vehicles is quite old as almost 72% or 9.94 mil- 3.4% lion cars were assembled before 2008. One in ten vehicles or 1.39 million units 2009 2.2% was manufactured in 2008 – 2010. The share of vehicles from 4 to 7 years old 2008 4.4% is 12.8% or 1.77 million vehicles. <2008 71.7% The share of vehicles assembled at AVTOVAZ in 2015 – 2017 is 5.5% of the parc or 0.77 million units in terms of numbers. 0 0%. 5 0%. 10 .0% 15 .0% Other Russian brands generate less than 7% of the passenger car parc Др. Российские in our country, that is 2.9 million vehicles. This segment is formed by mod- Other Russan brands els, manufactured during the Soviet period and phased out long time ago: 2017 0.5% Moskvich, Zaporozhets, as well as old modifications of and UAZ. As 2016 0.7% a result, over 88% of this parc or 2.55 million vehicles are assembled before 2015 0.9% 2008. The share of new cars of 2015 – 2017 production years is 2.1%, which is 2014 60.6 thousand vehicles in terms of numbers. So, vehicles assembled in 2008- 0.8% 2014 generate one tenth of the parc (283.2 thousand vehicles). This parc obvi- 2013 0.8% ously decreases every year as it is renewed with UAZ vehicles only. 2012 1.6% Over 60% (25.62 million units) of the all-Russian parc was generated by 2011 2.1% foreign vehicles. The Russian parc of foreign vehicles is young enough, first 2010 1.9% of all, due to the growing demand for them, which emerged in early 2000s. 2009 0.9% Cars produced before 2008 generate 41% of the parc or 10.51 million vehicles. Foreign vehicles assembled in 2008 – 2010 form almost 17% or 4.34 2008 1.5% million vehicles. The share of foreign cars from 4 to 7 years old is 30.7% (7.85 <2008 88.1% million units). According to GIBDD data, 2.92 million vehicles were manu- factured by foreign OEMs during the recent three years, that is 11.4% of the 0 0%. 5 0%. 10 .0% 15 .0% Russian passenger car parc. Иномарки Foreign brands 2017 3.6% Age structure of passenger car parc in Russia (un.) 2016 3.7% Production Other Russan Foreign 2015 4.1% Total LADA year brands brands 2014 6.7% 2013 7.9% 2017 1,211,049 272,682 13,843 924,524 2012 8.5% 2016 1,219,261 239,333 21,246 958,682 2011 7.5% 2015 1,321,451 257,310 25,479 1,038,662 2010 5.1% 2014 2,054,544 316,176 23,967 1,714,401 2009 2.7% 2013 2,477,884 419,058 24,311 2,034,515 2012 2,723,628 492,007 47,402 2,184,219 2008 9.1% 2011 2,527,121 547,311 60,287 1,919,523 <2008 41.0% 2010 1,835,911 474,702 55,199 1,306,010 2009 1,031,932 300,060 27,496 704,376 0 0%. 5 0%. 10 .0% 15 .0% Всего 2008 2,983,365 613,717 44,585 2,325,063 Total <2008 23,001,459 9,938,843 2,553,429 10,509,187 Total 42,387,605 13,871,199 2,897,244 25,619,162 2017 2.9% Source: processed data on vehicle parc as of 01.01.2018 2016 2.9% 2015 3.1% 2014 4.8% 2013 5.8% 2012 6.4% 2011 6.0% 2010 4.3% 2009 2.4% 2008 7.0% <2008 54.3% 0 0%. 5 0%. 10 .0% 15 .0%

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Brand structure of passenger car parc in Russia

An absolute leadership in the brand struc- American Ford with 1.35 million vehicles and number of passenger cars in our country is ture of the parc belongs to domestic LADA Japanese Mitsubishi with 1.16 million cars. registered in the Far East (1.96 million vehicles). with 13.87 million vehicles last year. Other brands have not more than 1 million That is the only district, where the leadership Despite 0.6% decrease in the share of vehicles in their parcs. belongs to Toyota and Nissan, not LADA. the Russian brand, one in three vehicles in our In 2017 the largest number of passen- country still belong to AVTOVAZ. ger cars was registered in Central Federal Brand structure of the parc The second place and the leadership District (12.26 million vehicles), which gen- among foreign brands are kept by Japanese erates almost 29% of the entire parc. The LADA 32 .7% Toyota with almost 9% of the entire Russian second place in the rating was taken by Volga TOYOTA 8 .9% parc or 3.76 million vehicles. Federal District with one in five vehicles (8.47 NISSANLADA 32,7% 4 .7% Another Japanese company - Nissan - is million units). TOYOTA 8,9% HYUNDAINISSAN 4,7% 4 .4% on the third place with 4.7% share i.e. over 2 One in eight vehicles registered by GIBDD KIAHYUNDAI 4% 4,4% million vehicles. belongs to Siberian Federal District (5.29 mil- RENAULTKIA 4% 3 .9% TOP-5 also includes Korean Hyundai (1.87 lion cars). The fourth place was taken by RENAULT 3,9% CHEVROLET 3 .8% million vehicles) and KIA (1.68 million vehi- North-Western Federal District (4.36 million CHEVROLET 3,8% 2017 VOLKSWAGENVOLKSWAGEN 3,6% 3 .6% cles); the first brand increased its share by vehicles), with over 10% share. 10% or 4.22 2017 FORDFORD 3 3,2% .2% 0.3% and the share of the second manu- million vehicles are registered in Southern MITSUBISHI 2,7% facturer grew by 0.4%. Then comes French Federal District MITSUBISHIGAZ 2,2% 2 .7% Renault with 1.66 million passenger cars. The sixth place in the district rating was GAZOPEL 2 .2%2,1% American Chevrolet (1.63 million vehicles) taken by Ural Federal District with about 9% OPELHONDA 2 .1% 1,8% SKODA 1,7% moved down to the seventh place. German share (3.78 million vehicles). Then comes North HONDAДругие 120,3% .8% Volkswagen (1.51 million vehicles) remained Caucasian Federal District with more than 2 SKODA 1 .7% on the eighth place. TOP-10 also includes million vehicles and 4.8% share. The least Other 20 .3%

Passenger car parc in Russia by Federal Districts (un.)

Brand Total Share, % Central FD Volga FD Siberian FD Northwest. FD South FD Ural FD North Cauc. FD Far East FD

LADA 13,871,199 32 .7 3,315,487 3,749,258 1,520,697 1,029,266 1,690,394 1,250,309 1,177,255 138,533 TOYOTA 3,759,393 8 .9 542,237 310,530 1,192,807 183,647 201,207 304,506 95,393 929,066 NISSAN 2,010,678 4 .7 592,183 247,990 352,461 193,857 149,276 171,279 37,080 266,552 HYUNDAI 1,868,751 4 .4 628,764 355,951 139,911 190,629 270,110 196,872 74,722 11,792 KIA 1,679,363 4 627,189 379,690 98,578 185,527 175,263 172,109 33,466 7,541 RENAULT 1,659,126 3 .9 599,174 413,803 99,327 251,205 126,010 140,806 23,375 5,426 CHEVROLET 1,626,763 3 .8 501,438 415,965 134,529 193,221 164,036 169,532 41,274 6,768 VOLKSWAGEN 1,512,121 3 .6 598,500 255,038 70,730 279,691 141,449 115,587 46,669 4,457 FORD 1,346,213 3 .2 514,762 220,299 89,242 222,722 125,527 119,286 44,771 9,604 MITSUBISHI 1,155,941 2 .7 374,375 167,750 137,171 151,986 85,961 108,313 21,541 108,844 GAZ 946,660 2 .2 246,360 164,472 167,962 73,242 100,375 95,763 80,173 18,313 879,136 2 .1 327,585 149,736 38,403 164,481 103,050 66,617 27,844 1,420 HONDA 742,464 1 .8 154,772 57,743 252,015 50,520 48,427 57,478 9,522 111,987 SKODA 733,365 1 .7 303,661 139,654 29,251 130,930 56,254 62,024 10,877 714 DAEWOO 729,913 1 .7 198,868 192,973 38,750 72,174 97,025 111,835 15,625 2,663 MAZDA 719,584 1 .7 217,309 94,155 130,418 76,253 63,934 70,494 17,055 49,966 MERCEDES-BENZ 636,882 1 .5 265,699 56,416 41,749 108,102 62,518 39,329 56,559 6,510 UAZ 628,703 1 .5 140,660 121,903 131,239 64,527 38,141 63,141 24,949 44,143 AUDI 615,403 1 .5 274,643 81,443 29,544 112,825 54,444 37,998 22,473 2,033 BMW 557,493 1 .3 239,749 64,470 37,119 88,092 54,279 37,110 33,263 3,411 MOSKVICH 446,760 1 .1 126,070 64,506 100,767 24,919 48,438 28,122 27,353 26,585 404,547 1 109,550 132,985 34,046 28,266 46,655 31,566 19,089 2,390 SUZUKI 402,301 0 .9 130,438 59,501 58,591 39,960 19,188 28,341 2,981 63,301 PEUGEOT 308,914 0 .7 127,561 48,313 17,839 49,337 33,618 24,723 7,142 381 SUBARU 268,595 0 .6 65,919 35,263 60,941 29,110 12,301 19,795 2,528 42,738 LEXUS 249,216 0 .6 77,962 28,955 48,040 19,254 19,109 22,306 10,734 22,856 VOLVO 244,688 0 .6 131,033 18,903 10,116 49,904 11,939 15,433 6,632 728 ZAZ 240,428 0 .6 74,943 44,169 32,730 19,802 27,438 22,008 12,267 7,071 CITROEN 184,627 0 .4 83,475 26,813 7,817 30,552 16,062 15,884 3,830 194 SSANGYONG 181,676 0 .4 74,386 28,790 18,028 22,601 13,398 13,987 3,199 7,287 IZH 174,056 0 .4 40,341 45,214 28,900 21,029 11,713 17,693 4,921 4,245 LAND ROVER 166,309 0 .4 83,499 19,380 10,304 24,185 11,774 11,375 4,227 1,565 CHERY 158,351 0 .4 44,805 39,567 12,519 19,843 18,398 18,138 4,987 94 LIFAN 137,823 0 .3 26,942 40,651 17,786 11,213 18,479 16,468 6,193 91 GREAT WALL 116,855 0 .3 46,722 19,734 8,465 21,426 7,737 11,151 1,288 332 GEELY 98,932 0 .2 17,295 32,518 6,446 10,186 13,433 14,829 4,168 57 FIAT 90,285 0 .2 26,486 24,967 2,300 15,519 9,373 9,547 1,954 139 INFINITI 80,185 0 .2 36,940 8,721 6,565 7,597 5,582 8,104 3,338 3,338 DATSUN 77,957 0 .2 20,995 27,765 6,260 6,117 7,289 8,562 819 150 JEEP 59,698 0 .1 29,452 6,672 4,039 8,737 3,361 4,529 2,016 892 Other 616,251 1 .5 223,315 79,440 61,579 79,644 56,994 44,882 21,404 48,993 Total 42,387,605 100 12,261,544 8,472,066 5,285,981 4,362,098 4,219,959 3,777,831 2,044,956 1,963,170 Source: processed data on vehicle parc as of 01.01.2018

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Regional structure of passenger car parc in Russia

Besides 0.3% decrease to 8.8% share, Regional structure of passenger car parc in Russia (un.) Moscow as the most populous region of Russia Share of Share of remains a leader in the number of registered pas- Foreign Domestic Region Total foreign domestic senger cars. In 2017 there were 3.71 million pas- brands vehiclesin the vehicles vehicles in the senger cars in the capital, only one in six of which region, % region, % is accounted for domestic cars (650.5 thousand Moscow 3,709,833 3,059,381 82 .5 650,452 17 .5 vehicles). Moscow region 2,623,829 1,965,214 74 .9 658,615 25 .1 The remaining 3.06 million vehicles are for- Krasnodar krai 1,778,192 1,008,535 56 .7 769,657 43 .3 St . Petersburg 1,694,821 1,365,840 80 .6 328,981 19 .4 eign cars. Moscow is followed by Moscow region Rostov region 1,281,525 700,220 54 .6 581,305 45 .4 with 2.62 million vehicles, a quarter of which are Sverdlovsk region 1,267,597 776,940 61 .3 490,657 38 .7 domestic cars. Republic of Tatarstan 1,221,506 648,717 53 .1 572,789 46 .9 Republic of Bashkortostan 1,191,143 584,459 49 .1 606,684 50 .9 The third place belongs to the leader among Chelyabinsk region 1,063,278 578,548 54 .4 484,730 45 .6 non-capital regions - Krasnodar Territory (1.78 region 1,017,514 469,380 46 .1 548,134 53 .9 million vehicles), where foreign brands dominate region 915,968 556,127 60 .7 359,841 39 .3 Krasnoyarsk krai 854,138 529,086 61 .9 325,052 38 .1 with more than a million vehicles and 56.7% share Primorskiy krai 841,719 786,003 93 .4 55,716 6 .6 in the local parc. Novosibirsk region 787,121 544,009 69 .1 243,112 30 .9 St. Petersburg took the fourth place with 1.69 Stavropol krai 769,390 334,698 43 .5 434,692 56 .5 Voronezh region 746,639 374,523 50 .2 372,116 49 .8 million passenger cars. Only a fifth of the parc in Saratov region 717,847 311,838 43 .4 406,009 56 .6 the North capital belongs to domestic vehicles. Irkutsk region 709,602 469,523 66 .2 240,079 33 .8 Rostov region (1.28 million vehicles), where Volgograd region 689,363 331,561 48 .1 357,802 51 .9 Kemerovo region 652,320 408,875 62 .7 243,445 37 .3 700.2 thousand foreign vehicles generate 54.6% Altay krai 645,287 348,032 53 .9 297,255 46 .1 of the parc, is on the fifth place. Orenburg region 641,236 256,288 40 .0 384,948 60 .0 Parc in Sverdlovsk region (1.27 million vehicles) Perm krai 640,487 347,110 54 .2 293,377 45 .8 has bigger skew toward foreign cars – their share Omsk region 574,019 307,612 53 .6 266,407 46 .4 Dagestan Republic 543,909 128,117 23 .6 415,792 76 .4 exceeded 60%, that is 776.9 thousand vehicles in Khanty-Mansi Auto . Area - Yugra 541,433 391,349 72 .3 150,084 27 .7 terms of numbers. Leningrad region 509,194 328,971 64 .6 180,223 35 .4 Then comes Tatarstan with 1.22 million pas- Belgorod region 504,671 251,516 49 .8 253,155 50 .2 Tula region 467,119 272,838 58 .4 194,281 41 .6 senger cars and 53.1% share of foreign vehicles Tyumen region 464,218 285,085 61 .4 179,133 38 .6 in the parc. Udmurt Republic 430,569 207,038 48 .1 223,531 51 .9 The eighth place was taken by Bashkortostan Tver region 422,596 241,440 57 .1 181,156 42 .9 Vladimir region 391,133 233,441 59 .7 157,692 40 .3 (1.19 million vehicles), where foreign and domes- Ryazan region 373,558 197,715 52 .9 175,843 47 .1 tic cars have almost equal shares. TOP-10 also Penza region 373,304 164,430 44 .0 208,874 56 .0 includes Chelyabinsk (1.06 million vehicles) and Lipetsk region 367,454 184,162 50 .1 183,292 49 .9 Vologda region 360,035 213,325 59 .3 146,710 40 .7 Samara (1.02 million vehicles) regions. The share Kaluga region 355,104 209,219 58 .9 145,885 41 .1 of foreign vehicles in the first region is 54.4%, Kaliningrad region 346,564 330,795 95 .4 15,769 4 .6 while Samara region is dominated by domestic Kirov region 344,643 157,411 45 .7 187,232 54 .3 Yaroslavl region 343,961 213,824 62 .2 130,137 37 .8 cars with almost the same share. Ulyanovsk region 341,503 136,697 40 .0 204,806 60 .0 We should also mention Nizhny Novgorod Tambov region 335,876 138,035 41 .1 197,841 58 .9 region, Krasnoyarsk Territory and Primorye Kursk region 330,460 164,876 49 .9 165,584 50 .1 Тomsk region 315,434 206,396 65 .4 109,038 34 .6 Territory with not less than 2% of the total parc. Habarovskiy krai 314,346 284,763 90 .6 29,583 9 .4 The shares of other regions are less. We Smolensk region 309,295 161,795 52 .3 147,500 47 .7 should also mention that domest brands prevail Bryansk region 308,426 175,871 57 .0 132,555 43 .0 only in one third of the Russian regions. Arkhangelsk region 301,914 185,491 61 .4 116,423 38 .6 Astrakhan region 280,730 133,634 47 .6 147,096 52 .4 Chuvashskaya Republic 276,550 129,671 46 .9 146,879 53 .1 Regional structure of the parc Kurgan region 270,137 113,642 42 .1 156,495 57 .9 Zabaykalskiy krai 264,462 161,203 61 .0 103,259 39 .0 Komi Republic 251,873 135,734 53 .9 116,139 46 .1 Moscow 8 .8% Murmansk region 248,888 172,677 69 .4 76,211 30 .6 Moscowг . Москва region 8,8% 6 .2% Orlov region 247,990 116,343 46 .9 131,647 53 .1 KrasnodarМосковская krai обл 4 . 6,2%.2% Ivanovo region 239,216 141,055 59 .0 98,161 41 .0 Pskov region 223,349 123,343 55 .2 100,006 44 .8 St . КраснодарскийPetersburg кр4% . 4,2% г . Санкт-Петербург 4% Karelia Republic 219,885 128,869 58 .6 91,016 41 .4 Rostov region 3% Ростовская обл . 3% Mordovia Republic 203,980 89,407 43 .8 114,573 56 .2 SverdlovskСвердловская region обл . 3% Saha Republic (Yakutiya) 203,617 140,260 68 .9 63,357 31 .1 Buryatia Republic 201,354 136,306 67 .7 65,048 32 .3 RepublicРесп . Татарстан of Tatarstan 2,9% 2 .9% Amurskiy region 199,749 153,545 76 .9 46,204 23 .1 20172017 RepublicРесп . Башкортостан of Bashkortostan 2,8% 2 .8% Челябинская обл . 2,5% Chechenskaya Republic 197,417 55,497 28 .1 141,920 71 .9 Novgorod region 195,026 106,161 54 .4 88,865 45 .6 ChelyabinskСамарская обл region . 2,4% 2 .5% Kabardino-Balkaria Republic 192,762 61,876 32 .1 130,886 67 .9 SamaraНижегородская region 2обл .4% . 2,2% Kostroma region 184,384 93,735 50 .8 90,649 49 .2 NizhnyКрасноярский Novgorod кр . region2% 2 .2% North Osetia-Alania Republic 174,837 59,970 34 .3 114,867 65 .7 Приморский кр . 2% Krasnoyarsk krai 2% Hakasia Republic 171,618 95,247 55 .5 76,371 44 .5 Новосибирская обл . 1,9% Yamalo-Nenets Autonomous Area 171,168 118,571 69 3 . 52,597 30 .7 PrimorskiyДругие 52,2% krai 2% Sahalin region 159,736 145,541 91 .1 14,195 8 .9 Novosibirsk region 1 .9% Каmchatka krai 156,708 137,950 88 .0 18,758 12 .0 Other 52 .2% Mariy El Republic 155,816 74,657 47 .9 81,159 52 .1 Republic of Adygea 125,064 54,676 43 .7 70,388 56 .3 Karachaevo-Cherkesk Republic 92,711 33,244 35 .9 59,467 64 .1 Ingushetiya Republic 73,930 21,913 29 .6 52,017 70 .4 Kalmikia Republic 65,085 22,956 35 .3 42,129 64 .7 Republic of Tyva 60,846 26,086 42 .9 34,760 57 .1 Altai Republic 49,780 28,988 58 .2 20,792 41 .8 Magadan region 44,533 38,000 85 .3 6,533 14 .7 Jewish autonomous region 37,752 30,330 80 .3 7,422 19 .7 Nenets Autonomous Area 10,549 7,158 67 .9 3,391 32 .1 Chukotka Autonomous Area 5,010 3,798 75 8 . 1,212 24 .2 Total 42,387,605 25,619,162 60.4 16,768,443 39.6 Source: processed data on vehicle parc as of 01.01.2018

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Phases of the russian automotive component market formation

Under planned economy nents, which were often manufactured at an Russia (industrial assembly-2) considerably. The Russian automotive component mar- OEM’s factory, but with a different brand According to the new conditions, allowances ket, as well as all automotive industry as and lower price as compared to the genuine for imported components can be retained only a whole, has undergone a different course products. in case of considerable growth (up to 60%) in of development than the market in Western In this stage a number of western compa- the localization level. Ministry of Industry and Europe. The main feature was its long-term nies managed to start production and supplies Trade and foreign automotive manufacturers role in a planned economy. Large number of of components for Russian brands to the signed important agreements, which are cur- OEM components were manufactured either aftermarket, having realized its significant rently expiring. Instead of them, in 2018-2020, by the automobile plants themselves, or by capacity. the goventment offers automotive manufac- companies which manufactured a wide range Following the growth in new foreign car turers to sign special investment contracts of products of a certain segment, e.g., electri- sales, foreign carmakers established their rep- (SPIC), which imply the use of more domestic cal or rubber products. resentative offices in Russia, which started to components in the local car production. The objective of these automobile plants, develop sales and service dealer networks. naturally, was automotive production without So OEM spare parts are supplied to these Special economic zones catering to the spare part requirements of the networks. They are mostly supplied through E.g. establishment of special economic ever growing car parc. Automotive spare parts central representative stocks in the country or zones, where some leading foreign automo- were exclusively supplied to in-house after- through the distributors. This market segment tive component manufacturers have been suc- sales service networks. is monitored and controlled by representative cessfully operating for long time already. Such As a result, a whole range of components offices of automotive manufacturers. zone, specialized in production of vehicles were short supplied, as their production was Carmakers’ partner companies supply and their components has been operating limited by the capacities of the specialized components for this market segment. During actively in Tatarstan (Alabuga)and Samara enterprises. 2-3 years of warranty period, when a vehicle region (Togliatti). There were no incentives or facilities should be serviced by company service centers Residents of Alabuga Special Economic for the technical and technological develop- this market segment is attached to carmakers Zone are over 50 companies, 5 of which are ment of automotive component production. and component suppliers. specialized in automotive industry. First of Component design and technological develop- However over the next few years, after all it is JV Ford Sollers Yelabuga (production ment of manufacturers were mostly initiated the warranty period of the growing car parc of Ford vehicles and Ford petrol engines). and invested by the automobile plants. expires and the cars are resold to new owners Other residents of the special economic zone the market of non-genuine components for are Coşkunöz-Alabuga (large pressed auto- Transition to the market economy the aftermarket would start developing. motive part production) and Automotive The development of the automotive com- Glass Alliance Rus (manufacture of automo- ponent market started together with the coun- Industrial assembly regime tive glass) and Bars Technology (produc- try’s transition to the market economy. At first, Further development of the automo- tion of automotive accumulator batteries). this trend applied to the aftermarket, i.e. parts tive market in Russia and the approval of Alabuga-Motors enterprise (special vehicles, and units for vehicle servicing and repairs. the Government Resolution about Industrial , and passenger car production) is being Companies, which had technological and Assembly #166 resulted in the establishment designed. production facilities, started component man- of foreign brand vehicle assembly enterprises Togliatti Special Economic Zone has 20 ufacture for the aftermarket. Some enterpris- in the country. Industrial Assembly regime residents, 11 of which specialize in automo- es prepared their production in collaboration had to stimulate foreign brand car assembly bile and automotive component production. with automobile plants and spare part quality plants to collaborate with Russian component The active enterprises are Nobel Automotive and technical level were certified. and material suppliers as well as to attract Russia (production of fuel pipes, windshield Later, these enterprises offered assembly foreign automotive component manufactur- washers, flexible cables, frames, engine units and parts for the primary market, i.e. for ers to Russia. component springs), SIE Automotive RUS supplies to Russian automobile plants. So Regulation # 566 about customs facili- (high tech production of cast aluminum parts At the same time a range of enterprises, ties for automotive components, imported for for automotive engines), Atsumitec Toyota manufacturing infringing spare parts, were industrial assembly, was approved. However Tsusho Rus (production of transmission established, a lot of spare part shops were the first enterprises, which started opera- selectors for manual and automatic gear- launched, and the market lost its information tion under industrial assembly regime, faced boxes), High-Lex Rus (production of con- transparency completely. some problems. Automotive manufacturers trol cables and window lifter cables), Edsha complained about the poor quality of the com- Togliatti (production of automotive compo- Foreign brand boom ponents produced in Russia, as well as the fact nents, including door, bonnet, boot hinges, The next factor to affect the Russian that domestic enterprises were unable to pro- doorstops, parking brake levers). component market was the increase in foreign vide a range of products for different auto- JV Systems (assembly enterprise of vehicle sales in the country. As the majority of motive brands and models. So foreign com- GM-AVTOVAZ) and Mubea Suspension imported vehicles had substantial operating ponent manufacturers followed automotive Components Rus (production of suspen- periods and mileages, the demand for their manufacturers to establish their production sion springs for passenger cars) are under components arose. in Russia. The new enterprises were launched construction. AZ Powertrain (production In this stage, companies which imported even during the crisis. of passenger car engines), GKN DRIVELINE and sold spare parts for imported vehicles In 2011 Ministry of Industry and Trade TOGLIATTI (production of constant-velocity were founded. and Ministry of Economic Development of universal joints) and Sano Volga (production Meanwhile, the market was flooded by the Russian Federation toughened regime of automotive components for brake and fuel non-genuine products. These were compo- of foreign vehicle industrial assembly in systems) are currently being designed.

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Trends and prospects of automotive component market in Russia

Growth of passenger car parc Furthermore, many domestic automotive There are also changes in component In 2017 passenger car parc in Russia grew component manufacturers still have the fol- design and development sphere. AVTOVAZ by 1.9% up to 42.4 million vehicles. The parc lowing problems: a lack of R&D, outmoded announced intention to transfer engineering growth was provided by foreign vehicles, equipment, ineffective cost and quality con- competence to component manufacturers, as whose number increased by 4.5% or 1.11 million trol management, focus on short-term invest- it is common in the world practice. Moreover, cars. During the year the total share of foreign ment, a lack of possibility and wish to develop engineering centers are established on the vehicles in the parc grew by 1.5% and is over Tier-2 component base, low competence of base of automotive clusters in Samara region 60% of the total number of registered passen- management. Foreign companies have strong and Tatarstan. ger cars now. Domestic vehicle parc continues advantage in it, so global component manu- We should mention that terms of most to decrease. Last year, their number reduced facturers followed automotive manufactur- agreements are due in 2018-2019. Leading by 1.9% ot 332.6 thousand vehicles, which is ers to establish their production in Russia. automotive manufacturers insist on prolon- a result of the quite large number of very old However most of them started production of gation of the period of the regime. However, vehicles, assembled during the Soviet period. low-tech components of the second and the the Ministry of Economic Development of We can expect increase in the parc by third level in Russia. Russia considers it unreasonable to prolong 2.3% this year and a slight steady growth There are two schemes of the global sup- the industrial assembly regime and offers in the following years, which will be 3% plier entering the Russian market: establish- a new mechanism - a Special Investment by 2022. According to our estimations, at ment of its own enterprise or a joint venture Contract (SPIC). In this case, to get the the end of this year, passenger car parc in with a Russian partner. At the very beginning state subsidies the automobile manufacturer our country will exceed 43 million vehicles. the last scheme was more preferred alterna- should invest in certain technological areas Later, the passenger car parc will add another tive as foreign manufactures did not know and undertake for the increase in localiza- 1 million every year and will exceed 48 million local business peculiarities, had language bar- tion level. However, the capacity of the vehicles by 2022. rier and that enabled them to pass bureau- decreased automotive market in Russia is not The trends in the changing of the parc cratic barriers. However today the scheme enough for establishment of large automo- structure will remain the same. The parc of with 100% foreign enterprise prevails. In the tive component enterprises, and the payback domestic brands will decrease as some of future new component enterprises will be period is unclear. So, leading automotive vehicles are naturally discarded. Moreover, established this way. Moreover some foreign manufacturers insisted on industrial assem- passenger car parc of brands such as GAZ, IZH companies cooperating with Russian partners bly prolongation. The format of the invest- and Moskvich will not be replaced with new have purchased the second party’s part or got ment regime, which should replace industrial vehicles anymore and domestic vehicle parc majority holding. assembly agreements, has not being finally renewal will be provided only by LADA and At that there is another scheme when defined yet. UAZ in the future. the supplier organizes its representative office As for AVTOVAZ vehicle parc, it will in the country before entering the primary Situation in the aftermarket decrease as well but very slow (from 0.2% market. Spare part sales are highly remunerative to 0.9%). The reasons for that are quite high business for official dealer centers. However, average age of such vehicles as well as grow- Toughening of industrial dealers sometimes are not able to provide full ing share of foreign vehicles. As a result the assembly regime service infrastructure. Often problems with growth in the Russian car parc will be provided In February 2011 Ministry of Industry and spare part timely delivery result in decrease of by imported and assembled in Russia foreign Trade toughened terms of industrial assembly, consumer loyalty and, after warranty period is brands. So, the share of foreign cars in the and increased required localization level up over, car owners go to “grey” service center, total passenger car parc will come close to to 60% by 2018. However, not all automo- where delivery is faster and cheaper. 62% this year, and 68% by 2022, which will tive manufacturers operating in our coun- Today a great number of federal and exceed 32 million vehicles in terms of numbers. try signed new agreements (some of them regional networks, operating in the aftermar- localize components under previous terms). ket, are interested in development and improve- ADVENT OF FOREIGN AUTOMAKERS By July 2013, the new industrial assem- ment of their services. That is why distribu- Today many world leading automakers bly agreements were signed by companies tors have to perfect their business processes, have their plants in Russia, which became pos- such as: AVTOVAZ-Renault-Nissan-IzhAvto launching new integrated storages, which are sible due to approval of the new concept of and -Mercedes consortium, JV Ford- organized by many foreign automobile manu- the Russian automotive industry development Sollers, Volkswagen and . It facturers in Russia, or increasing areas of the in the early 2000s. We should mention, that was expected that new production facilities active warehouses. And if the official dealer has most foreign automotive assembly enterprises for 500,000 vehicles per year would be estab- dominance during the warranty period, after its in our country operate under industrial assem- lished, that should attract global component expiry the real competitive activity starts. bly regime, according to which they undertook suppliers, which are interested in large produc- A wide range of spare part shops in regions to localize 30% of components (under the tion volume. has improved situation with component deliv- previous terms). According to the new rules manufactures ery to the customers. Moreover, spare parts As we know this regime had to stimulate are also liable to organize engine and trans- for the most popular car models become avail- foreign brand car assembly plants to col- mission production and engineering centers able at the shops. At that customers got a wide laborate with Russian component and material in Russia. choice of components from genuine parts to suppliers as well as to attract foreign auto- So, production of Renault power units analogues from different manufacturers. motive component manufacturers to Russia. was launched at AVTOVAZ. Volkswagen Specialized internet shops, which enable But having inspected local suppliers, foreign vehicles and Ford passenger cars also got the customer to order and buy spare parts companies decided that most Russian auto- their “Russian” engines. The low localization online, became widespread in the aftermarket motive enterprises are unable to meet qual- level (about 20%) became one of the reasons as that can become an important factor for a ity requirements. Automotive manufacturers for stoppage of GM vehicle production in customer choosing the shop. complained about the poor quality of the Russia. Besides political reasons of the largest The competition in the market of fast components produced in Russia. Moreover American manufacturer, difficult economic growing foreign car segment is intensifying. It domestic enterprises were unable to provide situation, sales slump and national currency is more difficult for small companies to work a range of products for different automotive depreciation were considerable reasons for the in the market, now there is a trend, when small brands and models. plant closing-down in March 2015. companies join large networks.

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Trends and prospects of automotive component market in Russia

Effect of the market crisis account the promise offered with starting to will save on everything, e.g. they will replace a The last crisis undoubtedly had its nega- grow Russian market. So, there will not be single stabilizer rack or a steering tie rod end tive impact on the automotive component deficiency of imported components, which do instead of a pair or buy an ordinary cabin filter and spare part market in Russia. At the same not have their analogues in Russia. instead of its coal analogue. Some of them will time, the primary market, directly linked to the We should also mention that now car even be ready to buy used parts. vehicle production was affected much more. owners have to save money, as real income of The demand for accessories, which are Last year, in spite of the fact that passenger population decreased while the prices, includ- mostly an element of luxury tend to decrease. car production in our country grew by 20%, it ing spare parts, grew. First of all, they include alloy wheels, which are did not even reach the level of 2014. The same Spare part prices become the most quite costly but not urgent. dynamics was also registered in the spare part important factor, the customers are not We should mention a trend of decrease aftermarket, but even despite the changes in ready to invest a lot in car repairs and main- in the prices of genuine spare parts started in the currency exchange rate and less decline tenance in the current situation. So, the the Russian automotive market. That is mostly rates, it did not reach this level as well. In gen- growing demand for low-cost and middle- actual for mass brand spare parts. Trying to eral, the aftermarket is less affected by these price lineups, which are in many spare part keep their customers and support their deal- factors and when the demand for new vehicles manufacturers’ product ranges, as well as ers, whose main profit source is service in the decline, car owners are keener on maintaining intensive competition, can become a trend. current difficult economic situation, a number and repairing their old ones, which provides Moreover, many motorists, will postpone of foreign and Russian automobile concerns the demand for spare parts. repairs of their vehicle or unit and aggregate started to reduce prices for genuine spare Decline in the primary market did not lead replacement as much as possible, and buy parts. That is also a result of the anti-infringing to mass withdrawal of foreign component cheaper spare parts. component campaign and the rouble appre- manufacturers from the Russian market, as First of all these will be spare parts, which ciation. However, according to the experts, they had invested considerable funds during do not affect moving ability of the vehicle, these measures will not attract a lot of new the period of the market growth taking into e.g. wiper blades. At the same time car owners customers, but retain the active ones.

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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

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Characteristic and evaluation of aftermarket capacity

According to AUTOSTAT analytic agency evaluation, in 2017 the Dynamics of the automotive component aftermarket total automotive component and spare part aftermarket in Russia ex- ceeded 990 million units of different parts, which is 2.6% more than a mln. USD year ago. That is about $22.7 billion in terms of money or 20.7% more 30,000 23,017.92 22,828.38 22,698.00 22,299.91 than a year ago. (+13.7%) (-0.8%) 19,083.67 (+20.7%) (-1.8%) 24,000 18,808.60 We should mention that we used rouble cost of spare parts for our (-16.4%) (-1.4%) calculation and after that presented result in dollar terms. 18,000 This report traditionally includes several of tens of most popu- lar components subdivided into 18 groups. They include major spare 12,000 parts, which need to be replaced regularly and whose breakage is not a single instance, defect or misuse failure. 6,000 Moreover it was necessary to collect enough operation life statis- tics for these components. 0 Some components were grouped in “Others”, however this group 2013 2014 2015 2016 2017 2018* includes quite large segments. E.g. wheel disks, bearings, general me- chanical rubber goods and many others. As a result this group is a tra- Structure of the automotive component aftermarket in 2017 ditional leader in our rating. Шины 12,4% Traditionally there are three leading segments in the automotive ПTiresодве 12.4%ска 10,7% component and spare part aftermarket: suspension parts, tires, and oils. Suspension 10.7% Масла 7,5% Last year the capacity of the tire market was 45.05 million units for Oils 7.5% $2.82 billion. That is 12.4% of the total component market capacity in ТBrakeормо зsystemная сис 5.4%тема 5,4% terms of money. Suspension parts generate 10.7% of the total market ФFiltersильтр 5.1%ы 5,1% capacity, which is about $2.43 billion (49.32 million units). Oils and ТTransmissionрансмиссия 3 3.9%,9% technical fluids are on the third place with 7.5% share. Passenger car РSteeringулевое у3.9%правление 3,9% parc needed 312 million liters of oil for more than $1.7 billion in 2017. Electric equipment 3.4% We should also mention brake system elements and filters. Each Электрооборудование 3,4% Clutch 3.4% of these segments generates over 5% of the total component market 22,7 Сцепление 3,4% Body parts 3% capacity. bln. USD Детали кузова 3% Accumulator batteries 2.4% According to our forecast over 1 billion spare parts will be sold in АКБ 2,4% Exhaust system 2.4% the automotive component aftermarket this year, which is 1.8% more Система выпуска 2,4% than a year ago. The main reason for that is the growth in passenger Ignition system 2.1% Система зажигания 2,1% car parc, which occurs due to foreign vehicles and results in the in- Belts 1.8% creasing demand for spare parts. In terms of money, due to changes РFuelемн иsystem 1,8% 1.6% in the exchange rate, the market capacity will decrease by the same ТElectr.оплив нengineая сис тcontrolема 1, 6parts% 1.4% 1.8% to $22.3 billion. ДCoolingетали Э systemСУД 1,4 0.9%% СEngineистема parts охла ж0.8%дения 0,9% ДOtherетали 27.8% двигателя 0,8% Прочие 27,9% Capacity of the automotive component aftermarket

2013 2014 2015 2016 2017 2018* Segment mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Tires** 43 .24 3,439 .64 43 .20 3,174 .82 37 .44 1,958 .98 37 .65 1,813 .38 45 .05 2,817 .85 48 .87 2,973 .79 Suspension 41 .17 2,538 .62 43 .32 2,469 .99 45 .97 1,995 .09 47 .53 2,010 .92 48 .90 2,432 .64 49 .32 2,255 .89 Oils*** 294 .04 1,975 .44 301 .96 1,835 .61 306 .07 1,512 92 . 308 59 . 1,445 .91 312 .04 1,706 .09 315 .24 1,609 .29 Brake system 29 .14 1,224 .89 30 .23 1,219 .31 31 .79 993 .13 32 .70 1,005 .98 33 .32 1,235 .97 33 .51 1,165 .02 Filters 112 .01 1,409 .06 117 .01 1,355 .09 116 .99 1,019 99 . 116 87 . 953 .53 118 .70 1,153 .00 119 .69 1,100 .36 Transmission 20 .28 832 .46 21 .09 818 .52 22 .34 687 .88 23 .60 708 .86 24 .58 886 .62 25 .14 852 .35 Steering 8 .49 885 .48 8 .76 871 .67 9 .18 726 74 . 9 45 . 750 .66 9 .62 884 .54 9 .73 866 .22 Electric equipment 51 .09 791 .35 52 .82 747 .99 56 .08 663 .12 58 .50 672 .18 60 .82 780 .98 62 .45 816 .42 Clutch 5 .59 710 .49 5 .67 724 .73 5 .91 677 98 . 6 05 . 697 .68 6 .10 773 .74 6 .09 622 .56 Body parts 4 .73 796 .99 4 .63 756 .69 4 .61 584 88 . 4 71 . 573 .72 4 .61 671 .96 4 .65 658 .45 Accumulator batteries 6 .65 681 .39 6 .87 643 .85 7 .21 468 .18 7 .44 452 .08 7 .65 546 .97 7 .82 519 .59 Exhaust system 6 .12 526 .81 6 .15 497 .64 6 37 . 433 .22 6 .61 438 .32 6 .91 544 .43 7 .29 549 .91 Ignition system 28 .51 532 .92 29 .20 514 .70 29 .23 419 .61 28 .87 398 .79 28 .79 485 .75 29 .37 469 .52 Belts 13 .14 339 .22 14 .04 341 .35 15 .91 330 .12 16 .61 331 .74 17 .21 411 .63 17 .35 388 .83 Fuel system 5 .50 372 .34 5 .68 360 .20 5 94 . 306 .51 6 .18 298 .91 6 .62 352 .65 6 .23 304 .92 Electr . engine control parts 4 .43 302 .43 5 .00 298 .70 5 53 . 266 50 . 6 03 . 275 98 . 6 52 . 325 76 . 6 93 . 324 .23 Cooling system 6 .16 209 .44 6 .18 196 .99 6 .37 166 88 . 6 56 . 165 .10 6 .80 197 .44 7 .14 197 .23 Engine parts 5 .67 178 .57 5 .54 161 .02 5 .62 144 23 . 5 75 . 141 .86 5 .95 170 .27 6 .33 179 .25 Other 216 .00 5,270 .40 229 .00 5,839 .50 235 00 . 5,727 .70 239 .00 5,673 .00 243 .50 6,319 .70 248 .20 6,446 .09 Total 901.97 23,017.92 936.33 22,828.38 953.57 19,083.67 968.68 18,808.60 993.68 22,698.00 1,011.36 22,299.91 * AUTOSTAT forecast. ** Till 2013 another method was applied for calculation (without taking into account winter tires purchased for new vehicles). *** Million liters

Other marketing reports can be ordered at AUTOSTAT analytic agency. 16 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT Regional capacity of aftermarket

Regional structure of spare part after- Spare part market capacity by regions in 2017 market in Russia associates with serviced passenger car parc. Serviced parc as of 01.01.2018 Spare part market capacity, mln. USD Moscow, which has the largest ser- Region Foreign brands Domestic vehicles Foreign Domestic Total viced parc of all Russian cities (3.05 mil- th. un. % th. un. % brands vehicles lion vehicles), is a traditional leader here. In 2017, the capacity of component after- Moscow 2,580 .2 12 .4 467 .4 3 7 . 2,080 .9 220 .3 2,301 .2 market in the capital came up to $2.3 bil- Moscow region 1,641 .8 7 .9 487 .2 3 9 . 1,324 .1 229 .6 1,553 .7 lion. At that over 90% of this sum belongs St . Petersburg 1,147 .5 5 .5 241 .4 1 9 . 925 .5 113 .7 1,039 .2 to spare parts for foreign vehicles ($2.08 Krasnodar krai 833 .1 4 .0 570 .7 4 6 . 671 .9 269 .0 940 .9 Sverdlovsk region 649 .7 3 .1 366 .3 2 9 . 524 .0 172 .6 696 .6 billion), which is a result of predominance Rostov region 582 .8 2 .8 430 .1 3 4 . 470 .0 202 .7 672 .7 of foreign cars in the parc. Republic of Tatarstan 560 .3 2 .7 465 .0 3 7 . 451 .9 219 .1 671 .0 Republic of Bashkortostan 499 .2 2 .4 473 .1 3 8 . 402 .6 223 .0 625 .6 The second place belongs to Moscow Chelyabinsk region 483 .5 2 .3 361 .5 2 9 . 390 .0 170 .4 560 .3 region where the component market ex- Samara region 399 .2 1 .9 432 .6 3 5 . 321 .9 203 .9 525 .8 ceeded $1.5 billion. We should mention Nizhny Novgorod region 466 .9 2 .2 279 .7 2 2 . 376 .6 131 .8 508 .4 Krasnoyarsk krai 408 .1 2 .0 231 .4 1 8 . 329 .1 109 .1 438 .2 that foreign vehicle components are also Primorskiy krai 520 .1 2 .5 34 .2 0 3 . 419 .5 16 .1 435 .6 in popular demand here ($1.32 billion), Novosibirsk region 416 .1 2 .0 173 .8 1 4 . 335 .6 81 .9 417 .5 while units and aggregates for domes- Voronezh region 311 .0 1 .5 276 .1 2 2 . 250 .8 130 .1 380 .9 Stavropol krai 276 .5 1 .3 326 .8 2 6 . 223 .0 154 .0 377 .0 tic vehicles are sold almost 6 times worse Saratov region 261 .2 1 .3 304 .3 2 4 . 210 .6 143 .4 354 .0 (about $230 million). Irkutsk region 344 .1 1 .7 159 .6 1 3 . 277 .5 75 .2 352 .7 Kemerovo region 325 .1 1 .6 181 .5 1 4 . 262 .2 85 .5 347 .7 The third place was taken by St. Pe- Volgograd region 275 .3 1 .3 266 .2 2 1 . 222 .0 125 .4 347 .5 tersburg where component aftermarket Perm krai 293 .7 1 .4 230 .8 1 8 . 236 .9 108 .8 345 .7 exceeded $1 billion. Spare parts for foreign Khanty-Mansi Auto . Area - Yugra 322 .6 1 .5 115 .8 0 .9 260 .2 54 .6 314 .8 Orenburg region 216 .6 1 .0 289 .2 2 3 . 174 .7 136 .3 311 .0 cars are 8 times more popular than compo- Altay krai 263 .4 1 .3 206 .1 1 6 . 212 .4 97 .1 309 .5 nents for domestic vehicles here. If spares Omsk region 240 .9 1 .2 190 .0 1 5 . 194 .3 89 .5 283 .9 for foreign cars were sold for $925.5 mil- Leningrad region 267 .9 1 .3 130 .8 1 0 . 216 .0 61 .6 277 .7 Belgorod region 210 .1 1 .0 192 .5 1 5 . 169 .4 90 .7 260 .1 lion, the sales of components for Russian Tyumen region 238 .6 1 .1 135 .8 1 1 . 192 .4 64 .0 256 .4 vehicles came up to $113.7 million. That is Tula region 226 .7 1 .1 143 .0 1 1 . 182 .8 67 .4 250 .3 Dagestan Republic 100 .1 0 .5 315 .9 2 5 . 80 .7 148 .9 229 .6 a result of a large parc of foreign vehicles. Udmurt Republic 177 .2 0 .9 174 .7 1 4 . 142 .9 82 .3 225 .3 Krasnodar Territory where spare parts Tver region 196 .6 0 .9 132 .8 1 1 . 158 .6 62 .6 221 .2 were sold for almost $1 billion is the leader Vladimir region 193 .3 0 .9 120 .0 1 0 . 155 .9 56 .6 212 .5 Ryazan region 166 .6 0 .8 133 .9 1 1 . 134 .4 63 .1 197 .5 among non-capital regions. The number Vologda region 179 .0 0 .9 111 .8 0 9 . 144 .3 52 .7 197 .0 of foreign components there is 2.5 times Kaliningrad region 233 .3 1 .1 11 .1 0 1 . 188 .2 5 .2 193 .4 more than the number of domestic spare Lipetsk region 154 .2 0 .7 139 .3 1 1 . 124 .4 65 .7 190 .1 Kaluga region 171 .7 0 .8 107 .5 0 9 . 138 .5 50 .6 189 .1 parts. Sverdlovsk region, where spare Yaroslavl region 175 .7 0 .8 96 .8 0 8 . 141 .7 45 .6 187 .3 parts were sold for almost $700 million, is Penza region 136 .8 0 .7 158 .8 1 3 . 110 .3 74 .8 185 .2 on the fifth place. Kirov region 128 .8 0 .6 142 .2 1 1 . 103 .9 67 .0 170 .9 Habarovskiy krai 199 .8 1 .0 20 .3 0 2 . 161 .1 9 .6 170 .7 Over $600 million are spent for spare Kursk region 135 .8 0 .7 125 .1 1 0 . 109 .5 59 .0 168 .5 parts in Rostov region, Tatarstan and Arkhangelsk region 154 .9 0 .7 90 .7 0 7 . 125 .0 42 .7 167 .7 Тomsk region 161 .4 0 .8 79 .2 0 6 . 130 .1 37 .3 167 .5 Bashkortostan. The demand for spare Ulyanovsk region 116 .3 0 .6 156 .3 1 2 . 93 .8 73 .6 167 .5 parts in Chelyabinsk, Samara and Nizhny Tambov region 115 .6 0 .6 147 .6 1 2 . 93 .2 69 .6 162 .8 Novgorod regions exceeded $500 million. Bryansk region 141 .4 0 .7 99 .6 0 8 . 114 .1 46 .9 161 .0 Smolensk region 129 .1 0 .6 109 .0 0 9 . 104 .1 51 .4 155 .5 We should mention that the largest Chuvashskaya Republic 108 .4 0 .5 116 .3 0 9 . 87 .4 54 .8 142 .2 prevalence of spare parts for foreign cars Astrakhan region 109 .7 0 .5 108 .0 0 9 . 88 .5 50 .9 139 .4 is in Kaliningrad region, where the foreign Murmansk region 138 .5 0 .7 54 .0 0 4 . 111 .7 25 .5 137 .2 Komi Republic 112 .0 0 .5 84 .9 0 7 . 90 .3 40 .0 130 .3 car component aftermarket was 36 times Kurgan region 93 6 . 0 .4 113 .5 0 .9 75 .5 53 .5 129 .0 more that the one of domestic vehicles. Ivanovo region 116 .4 0 .6 73 .3 0 .6 93 8 . 34 .5 128 .4 Zabaykalskiy krai 115 .2 0 .6 70 .1 0 .6 92 9 . 33 .0 125 .9 The 26-fold superiority is registered in Pri- Orlov region 96 0 . 0 .5 95 .1 0 .8 77 .4 44 .8 122 .2 morye Territory. This advantage is 16-fold Karelia Republic 104 .5 0 .5 66 .2 0 5 . 84 .2 31 .2 115 .5 in Khabarovsk territory and Sakhalin re- Pskov region 96 4 . 0 .5 71 .5 0 .6 77 .8 33 .7 111 .5 Mordovia Republic 75 1 . 0 .4 88 .5 0 .7 60 .6 41 .7 102 .3 gion and more than 12-fold in Kamchtka. Novgorod region 86 6 . 0 .4 67 .4 0 .5 69 .9 31 .8 101 .6 The opposite situation is in Dagestan, Amurskiy region 107 .5 0 .5 30 .7 0 .2 86 7 . 14 .5 101 .2 where the capacity of the aftermarket of Buryatia Republic 98 7 . 0 .5 44 .4 0 .4 79 .6 20 .9 100 .5 Saha Republic (Yakutiya) 97 5 . 0 .5 43 .5 0 .3 78 .6 20 .5 99 .1 spare parts for Russian vehicles (almost Yamalo-Nenets Autonomous Area 95 .7 0 .5 39 .1 0 .3 77 .2 18 .4 95 .6 $149 million) is 1.8 times more than that Kostroma region 76 9 . 0 .4 69 .4 0 .6 62 .0 32 .7 94 .7 Chechenskaya Republic 46 3 . 0 .2 114 .0 0 .9 37 .4 53 .7 91 .1 of foreign cars ($80.7 million). Greater Kabardino-Balkaria Republic 48 5 . 0 .2 98 .9 0 .8 39 .1 46 .6 85 .7 demand for domestic vehicle components Hakasia Republic 73 0 . 0 .4 54 .3 0 .4 58 .9 25 .6 84 .5 is also registered in Chechnya, Ingushetia, Mariy El Republic 62 7 . 0 .3 63 .7 0 .5 50 .5 30 .0 80 .6 Sahalin region 92 6 . 0 .4 9 .7 0 .1 74 .7 4 .6 79 .3 Kabardino-Balkaria, North Ossetia-Alania. North Osetia-Alania Republic 46 7 . 0 .2 87 .9 0 .7 37 .6 41 .4 79 .1 Foreign car parcs here are less than the Каmchatka krai 85 5 . 0 .4 11 .7 0 .1 68 .9 5 .5 74 .5 number of Russian vehicles. Republic of Adygea 45 1 . 0 .2 52 .0 0 .4 36 .4 24 .5 60 .9 Karachaevo-Cherkesk Republic 27 1 . 0 .1 46 2 . 0 .4 21 9 . 21 .8 43 .6 Ingushetiya Republic 17 1 . 0 .1 41 .8 0 .3 13 .8 19 .7 33 .5 Kalmikia Republic 19 4 . 0 .1 32 .0 0 .3 15 .6 15 .1 30 .7 Republic of Tyva 19 9 . 0 .1 25 .4 0 .2 16 .0 12 .0 28 .0 Altai Republic 21 7 . 0 .1 14 .6 0 .1 17 .5 6 .9 24 .4 Magadan region 24 8 . 0 .1 4 .4 0 .0 20 .0 2 .1 22 .1 Jewish autonomous region 21 0 . 0 .1 4 .7 0 .0 16 .9 2 .2 19 .1 Nenets Autonomous Area 6 .0 0 0 . 2 .6 0 .0 4 .9 1 .2 6 .1 Chukotka Autonomous Area 2 .8 0 .0 0 .9 0 .0 2 .3 0 .4 2 .7 Total 20,818.3 100.0 12,536.9 100.0 16,789.9 5,908.1 22,698.0

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This part of the report includes information about spare Capacity of passenger car spare part market by brands part market capacity by car brands, which besides price com- ponent depends on the serviced parc of the brand’s passenger TOYOTA 14.2% cars. At that here we take into consideration capacity of for- NISSAN 8.6% eign car component market only, as the lion’s share of domestic HYUNDAI 6.6% vehicles belongs to LADA, and there is no necessity in further RENAULT 6% segmentation. VOLKSWAGEN 5.9% In 2017, serviced parc of foreign brand passenger cars in KIA 5.4% Russia was 20.82 million vehicles. According to our estima- 16.79 billion USD CHEVROLET 5.2% tion, the spare part market for this number of foreign vehicles FORD 5.1% is almost $16.8 billion. The absolute leaders here are spares for MITSUBISHI 4.7% Toyota vehicles, which generate one seventh of the total mar- OPEL 3.2% ket or $2.38 billion. This large share is a result of the greatest HONDA 3.1% number of vehicles of this Japanese brand in our country (2.55 MERCEDES-BENZ 3% million vehicles). Other 29% The second popular components are the spares for another Japanese brand – Nissan. Today their share is 8.6% of the total foreign car component market or about $1.45 billion. Capacity of passenger car spare part market by brands Components for Hyundai passenger cars are on the third place with 6.6% share; capacity of this market is $1.11 billion. Brand Serviced parc, th. un. Capacity, mln. USD Over $1 billion were spent for Renault spare parts. A little less result was registered by Volkswagen. TOYOTA 2,553 7 . 2,379 4. Components for KIA passenger cars, which were sold for NISSAN 1,673 9 . 1,445 2. $910.2 million, moved up to the sixth place. Then come Ameri- HYUNDAI 1,598 6 . 1,105 3. can brands such as Chevrolet ($889.7 million) and Ford ($853.1 RENAULT 1,457 6 . 1,002 5. million) followed by Japanese Mitsubishi with $789.1 million. VOLKSWAGEN 1,262 2 . 999 .2 The tenth place belongs to Opel spare parts ($535.5 mil- KIA 1,305 3 . 910 .2 lion). We should also mention Honda ($517.7 million) and Mer- CHEVROLET 1,433 9 . 880 .7 cedes-Benz ($503.9 million) with not less than 3% shares. The FORD 1,134 8 . 853 .1 results of other brands are less. MITSUBISHI 951 .4 789 .1 OPEL 705 .1 535 .3 HONDA 581 .9 517 .7 MERCEDES-BENZ 497 .3 503 .9 BMW 453 .6 497 .0 MAZDA 595 .8 491 .3 SKODA 661 .7 474 .7 AUDI 463 .3 449 .2 DAEWOO 615 .5 316 .3 SUZUKI 337 .0 265 .3 SUBARU 220 .0 208 .0 PEUGEOT 264 .9 200 .3 Other 2,050 .8 1,966 .4 Total 20,818.3 16,789.9

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Methods of calculation and critical parameters

Methods of the component and spare part aftermarket capacity Operation life calculation have not changed a lot. They are traditionally based on two Component operation life index was calculated as an average be- key parameters: operation life of the parts and serviced car parc. We tween minimum and maximum value for each item. It was defined ac- subdivided the total parc into four age groups. The first group (under 3 cording to operational data of particular models (data in the table) of years old) includes vehicles, mostly under warranty period and served different price segments, widespread in the parc. The information was by a dealer. The second group (from 3 to 10 years old) includes ve- taken from different sources, such as expert judgments of service sta- hicles, whose warranty period has already expired, but technical condi- tions and dealer shops’ specialists, as well as the experience of real car tion is still good, and the serious maintenance expenses occur at the owners, shared at the Internet forums of various brand fan web sites. end of the period. The vehicles aged from 10 to 20 might have a lot of All data concerning the parts operation life were defined as the failed units. The owners of cars over 20 years old repair their vehicles united parameter – kilometrage in thousand km. This was necessary the most often. for the calculation unification, although operation life of some parts is Every age group has its own average annual kilometrage: the vehi- mostly measured by the time before replacement (e.g. batteries, brak- cles under 3 years old – 20,000 km, from 3 to 10 years old – 18,000 km, ing fluid, etc.). from 10 to 20 years old – 15,000 km, over 20 years old – 10,000 km. Prices Serviced parc The average prices for spare parts and operational materials were Serviced car parc differs for various spare parts. The calculations obtained from the shops and dealer shops’ price-lists, taking into ac- were based on GIBDD statistics for the previous years and our own es- count the list of models in the table. Information on maximum and timation for the current year. minimum prices for genuine parts and their analogues were collected. In 2017, the parc amounted to 42.39 million passenger cars, includ- Genuine part – analogue ratio was defined as 30/70. The prices for ing 25.58 million foreign and 16.81 million domestic vehicles. Taking some parts were corrected according to the age structure of the parc. into consideration that not all vehicles registered in GIBDD are in use (many of them are broken, some families have two or three cars, some Design factor owners drive car less than 1,000 km per year, so it is incorrect to count According to the part operation life and the average mileage for these vehicles) the parc for calculation was corrected downward ac- each age group, we have found the factor, which shows how many cording to the use factor. The use factor was defined for every produc- times a year a particular part should be replaced. It is calculated as the tion year, which provides higher calculation accuracy. average mileage-to-operation life ratio. It enabled to correct the value E.g. the use factor is 1 for one-year-old vehicles; 0.99 for two-year- of the car parc, which might require replacement of particular parts old ones; 0.96 for five-year-old cars; 0.9 for ten-year-old ones, etc. during the period under review. So if a part’s operation life is 20,000 As a result the calculation for 2017 was made for 20.8 million for- km for a car under 3 years old (the average mileage is 20,000 km), this eign and 12.5 million domestic vehicles. The full information of the parc part is replaced every year, so the factor is 1 and the capacity is equal to by the production years is available in the table. the value in the Volume column. If the mileage is 30,000 km, the factor In order to estimate the aftermarket capacity for separate seg- is 0.66 and the capacity is calculated as Volume multiply by 0.66. If the ments the parc was subdivided according to its design features: engine mileage is 50,000 km, the factor is 0.4 and so on. type, mixing system type, drive type, transmission type, brake system and suspension features, etc. We have also made researches on filling List of models capacities of the most popular vehicles of the parc. All this information is represented in the Volume column in the Model name Model name tables for each spare part. E.g. during the calculation of the market capacity for trunnion ball we took into account that some cars of the Audi A6 Skoda Octavia parc have no such parts at all, some models have four and other – two Mazda3 trunnion balls. During the calculation of the market capacity for gear BMW Series 5 Toyota Camry oil and fluid for we examined the car parc ac- Mercedes E-Class Hyundai Solaris cording to transmission type. We could see that automatic transmis- Toyota Corolla sion is installed in 49% of foreign cars under 3 years old, 42% of for- KIA cee’d eign cars from 3 to 10 years old, 39% - from 10 to 20 years old and Toyota LC 26% of foreign cars over 20 years old. This approach was applied for Mitsubishi Outlander KIA Rio all spare parts. Chevrolet Lacetti Toyota LC Prado Nissan Almera KIA Sportage Chevrolet Niva Toyota RAV4 Nissan Qashqai /Priora Serviced parc of passenger cars as of 01.01.2018* (mln. un.) Daewoo Matiz UAZ 3162/Patriot Nissan X-Trail LADA 4x4 Parc Under 3 3 – 10 10 – 20 Over 20 Total Daewoo Nexia Volkswagen Golf OKA LADA Classic Ford Focus Volkswagen Passat Russian brands 0 .7 3 .2 5 .3 3 .3 12 .5 LADA Kalina/Granta Foreign brands 2 .6 10 .7 5 .6 1 .9 20 .8 GAZ 24/3102/3110 Volkswagen Polo Total 3.3 13.9 11.0 5.2 33.4 Renault Logan * Parc, taking use factor into account Honda CR-V Volkswagen Touareg

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Automotive tires

Tire segment is one of the largest in the Market structure in 2017 Russian aftermarket with one eighth of the total volume in terms of money. So, accord- ing to AUTOSTAT evaluation, based on appli- Sales volume Market capacity cability and operation life of automotive tires, average annual mileage of vehicles in Russia, 45.05 Summer tires 58% 2,817.85 Summer tires 54% as well as climate, road condition and other mln. un. mln. USD particularities of Russian regions, the volume Winter tires 42% Winter tires 46% of passenger tire aftermarket was 45 million units in 2017. Summer tires generate 58% of the total number or almost 26 million units. Other 42% come from winter tires with 19.1 million units. In terms of money, the mar- ТОР-20 dimension types of summer tires in 2017 ТОР-20 dimension types of winter tires in 2017 ket capacity was $2.82 billion. So, car own- ers spent over $1.5 billion for summer tires Dimension types Summer tires, un. Dimension types Winter tires, un. last year, which is 54% of the total volume. About $1.3 billion were spent for winter tires last year. 175/70 R13 4,227,516 175/70 R13 2,708,509 Predominance of summer tires in the af- 195/65 R15 2,009,024 185/65 R15 1,539,291 termarket last year is mostly associated with 205/55 R16 1,716,984 195/65 R15 1,277,371 their operation life, which is on average 4.5 185/65 R15 1,654,248 205/55 R16 1,179,297 years vs. 6 years for winter tires (taking into 185/60 R14 1,629,445 185/60 R14 1,081,954 account that summer season is longer than 175/65 R14 1,476,313 175/65 R14 971,594 winter one). 215/65 R16 963,589 215/65 R16 714,453 Last year, the most popular dimension 205/60 R16 634,770 205/60 R16 356,872 type of both summer and winter tires was 195/60 R15 595,133 185/65 R14 348,483 175/70 R13, used mostly for AVTOVAZ ve- 185/65 R14 538,190 175/70 R14 324,735 hicles, particularly the LADA Classic and the 235/65 R17 441,066 225/65 R17 317,560 LADA Samara, which have very big parc in 195/55 R15 437,872 185/75 R16 303,512 our country. The demand for summer tires of 225/60 R17 376,525 225/60 R17 301,763 this dimension type was 4.22 million units, for 175/70 R14 336,922 195/60 R15 299,213 winter tires – 2.71 million units. Other popu- 215/60 R16 335,425 235/65 R17 272,398 lar dimension types in 2017 were 195/65 R15, 225/65 R17 333,743 215/55 R17 269,914 205/55 R16, 185/65 R15, 185/60 R14, 175/65 185/70 R14 315,520 185/60 R15 246,270 R14. The sales of tires of these types exceeded 225/75 R16 300,245 215/60 R16 236,609 1 million units. 185/75 R16 293,105 205/65 R16 234,805 215/55 R17 292,498 225/75 R16 231,508 Other 7051,742 Other 5,878,966 Total 25,959,875 Total 19,095,077

Tire market capacity 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Summer tires 19 .82 894 .80 23 .19 1,018 .12 25 .96 1,525 09 . 25 39 . 1,478 58. Winter tires 17 .62 1,064 .18 14 .46 795 26 . 19 10 . 1,292 .77 23 .49 1,495 .22 Total 37.44 1,958.98 37.65 1,813.38 45.05 2,817.85 48,87 2,973.79

* AUTOSTAT forecast

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Automotive batteries

According to our estimations of the aftermarket, based on the average Battery production in Russia battery operation life of 4 year (that is a battery operation life in case of correct handling and soft operation conditions) and serviced parc of 33.4 AKOM 27.9% million passenger cars, the car owners needed 7.65 million batteries in 2017. Tyumen Accumulator Plant 17.8% This number might change a lot as battery operation life depends on op- Kursk plant Accumulator and eration conditions. Extremely cold winter could result in battery sales boom IStochnik TOka Kurskiy (KZA&ISTOK) 16.0% and mild winter might prolong battery operation life for 2-3 years more. 2017 The total capacity of the battery aftermarket was $547 million last year. Tangstone 8.0% The Russian battery market contains batteries, produced by the Russian Alkor 7.8% plants and imported ones. According to our estimation, the share of import- АкТех 6.0% ed batteries increased by almost 4% last year up to 38.3% of the market, Bars Technology 3.5% while Russian batteries generate 61.7% of the market capacity. According to the official information, import of batteries for passenger cars came up Elektroistochnik 1.2% to 3.93 million units in 2017, which is 3.2% more than a year ago. Johnson Other 12.0% Controls is the largest importer of lead-acid passenger car batteries to Rus- sia. Last year the company imported 1.09 million batteries, that is 5% more Battery market capacity than a year ago. The total production of accumulator batteries in Russia decreased by Year Mln. un. Mln. USD 9.6% to 7.62 million units last year. AKOM plant, where 2.12 million batter- ies were produced in 2017, which is 2% more than a year ago, remains the 2012 6 .30 629 .88 leader among domestic enterprises. 2013 6 .65 681 .39 The second place was taken by Tyumen Accumulator Plant, which 2014 6 .87 643 .85 manufactured 1.35 million batteries last year, that is 11.3% less than a year 2015 7 .21 468 .18 ago. Accumulator and ISTOK+ plants (Kursk) operating as joint production 2016 7 .44 452 .08 facilities, decreased their production even greater – by 16.7% and took the 2017 7 .65 546 .97 third place. 2018* 7 .82 519 .59 * AUTOSTAT forecast

Dynamics of automotive battery production in Russia in 2012 – 2017 (th. un.)

Manufacturer 2012 2013 2014 2015 2016 2017 Chg., %

AKOM 1,390 1,312 1,516 1,851 2,084 2,124 1 .9 Tyumen Accumulator Plant 1,198 1,030 1,109 1,360 1,527 1,354 -11 .3 Kursk plant Accumulator and IStochnik TOka Kurskiy (KZA&ISTOK) 1,046 1,269 1,328 1,427 1,465 1,221 -16 .7 Tangstone 128 213 396 508 602 610 1 .3 MPKF Alkor 574 444 480 633 723 591 -18 .3 AkTeh 580 518 535 634 861 454 -47 .3 Bars Technology 0 0 0 0 0 263 - Elektroistochnik 270 447 274 237 88 90 2 .3 Other 879 844 1,047 896 1,082 916 -15 .3 Total 6,065 6,077 6,685 7,546 8,432 7,623 -9.6 *Starter accumulator batteries for starting piston engines Source: Official data of ANO IIC Statistics of Russia

Calculation of passenger car battery market capacity

Age group Resource, years Parc Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. USD mln. un. mln. USD

Under 3 0 .04 3 .3 73 .9 0 13 . 9 .65 3 – 10 0 .25 13 .9 72 .4 3 48 . 251 .90 Accumulator batteries 3 5 4 10 – 20 0 .25 11 .0 73 .0 2 74 . 200 .01 Over 20 0 .25 5 .2 65 .7 1 30 . 85 .41 Total - - - - 33.4 - 7.65 546.97

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Front body parts. Exterior parts

This section includes front body parts as well as exterior parts, Market structure in 2017 damaged in the accidents. We do not consider the body parts, re- quired replacement due to metal corrosion. The fact of the matter is Wing 25% that the replacement of body parts to keep the body in operation is Bonnet, boot lid 15% not economically sound recently and only few mechanics would do it. The cost of body recovery work at the service center often close 4.61 Door 11% to the price of the car. mln. un. Bumper 19% Another reason is increase in the car body corrosion resistance, Headlight, lamp 21% due to modern paste, two-component precoat, paint-and-lacquer Glass 9% materials as well as one or two-sized galvanized metal sheet used in the production (over 50% of car body). That is not only for foreign cars but also for AVTOVAZ models. Manufacturer’s corrosion warranty is up to 12 years now. In fact Wing 26% body operation life is even longer: most vehicles of 15 years old do Bonnet, boot lid 20% not have visible centers of corrosion. The other situation is with the 671.96 Door 18% recovery of the vehicle after the accident. Spare part market is as- mln. USD Bumper 15% sessed in millions units in this sector. We calculate capacity of the front body part market on the base Headlight, lamp 16% of car accidents with material damage. According to the statistics Glass 5% data in 2017 the road inspectors registered 3.73 million road acci- dents with material damage (on average 10.2 thousand accidents per day). As an accident is mostly made by minimum two vehicles Front body part market capacity 2017 we get about 7.5 million vehicles damaged in an accident every year. The share of passenger cars, which generate 83.8% of the to- Name Mln. un. Mln. USD tal parc in Russia, in this list is about 6.3 million vehicles. Then we studied the statistics of insurance companies, which get repairs es- timates from claims representatives and order forms from service Wing 1 .17 177 .06 stations. Having processed this data we got the structure of accident Bonnet, boot lid 0 .67 135 .68 effects concerning the number of parts damaged in the accidents Door 0 .50 119 .06 and number of parts required replacement and correlation of the Bumper 0 .86 102 .35 parts, damaged the most often. Headlight, lamp 0 .98 106 .01 This year we have also calculated capacity of the market of au- Glass 0 .42 31 .80 tomotive glass, whose replacement results not only from road ac- Total 4.61 671.96 cidents but also from damages with stones. According to our estimation the volume of exterior part market Calculation of front body part market capacity in 2017 in Russia was 4.61 million major parts last year. Parts for foreign vehicles generate 62.5% of the market (2.88 million units). In terms Parc Price Market capacity of money the Russian market is $672 million. In terms of money the Name mln. un. USD mln. un. mln. USD total cost of the parts for foreign car repairs ($574.32 million) is almost 6 times more than the cost of the parts for domestic vehicles Foreign brands ($97.64 million). Wing 20 .8 212 .3 0 .73 155 .57 Bonnet, boot lid 20 .8 273 .0 0 .42 114 .90 Door 20 .8 325 .6 0 .31 101 .43 Bumper 20 .8 161 .9 0 .54 87 .37 Headlight, lamp 20 .8 148 .2 0 .61 90 .79 Glass 20 .8 93 .4 0 .26 24 .25 Total 20.8 - 2.88 574.32 Russian vehicles models Wing 12 .5 48 .7 0 .44 21 .49 Bonnet, boot lid 12 .5 81 .9 0 .25 20 .77 Door 12 .5 94 .0 0 .19 17 .63 Bumper 12 .5 46 .1 0 .32 14 .99 Headlight, lamp 12 .5 41 .3 0 .37 15 .22 Glass 12 .5 48 .2 0 .16 7 .54 Total 12.5 - 1.73 97.64

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Automotive oil and lubricants

In 2017 the Russian market of oil and major operating fluids was $1.71 billion. That is Market structure in 2017 312.04 million liters of automotive fluid with the price of $5.5 per liter. Engine oils form the largest share of the market - 69% in terms of numbers and 82% in terms of money. Large amount of engine oil consumption is a result of short replace- Engine oil 69% ment age: engine oil is changed 1-2 times a year. So, due to the high consumption of Transmission oil 4% engine oil in all vehicles (regardless of the manufacturer and the engine type, the capacity 312.04 Antifreeze 24% and the design) the capacity of the engine oil market in Russia is almost 214.71 million liters mln. litr. or $1.39 billion. Brake fluid 1% The second place belongs to coolants. Their share is 24% and 9% in terms of numbers Fluid for automatic and money respectively, which is 73.84 million liters and $146.62 million. Special fluids transmission 2% with operation life of over 100,000 km of vehicle mileage are often used as coolants. The cars under 3 years old do not need any operation fluids (with high replacement age). The exception is antifreeze, which is used in cooling system. Engine oil 82% Transmission oil for manual gear boxes is replaced even more seldom (4% share). Other fluids do not need to be changed so often and sometimes automotive manufac- Transmission oil 4% turers guarantee the operation life of transmission oil or fluid for automatic transmission 1,706.09 Antifreeze 9% (2% – 4% share) to be equal to a vehicle operation life. mln. USD As for brake fluid, whose market share is within 1 – 2%, despite the automotive Brake fluid 2% manufacturers’ recommendation many car owners do not change it or delay replacement. Fluid for automatic These and other situations were taken into account during the market capacity calculation. transmission 4%

Automotive oil and lubricant market capacity

2013 2014 2015 2016 2017 2018* Name mln. l mln. USD mln. l mln. USD mln. l mln. USD mln. l mln. USD mln. l mln. USD mln. l mln. USD

Engine oil 206 .5 1,654 .0 211 .36 1,531 35 . 211 37 . 1,253 77 . 212 93 . 1,191 30 . 214 71 . 1,391 77 . 217 .73 1,316 .08 Transmission oil 11 .3 72 .8 11 .61 68 38 . 11 97 . 57 .99 12 .22 57 .27 12 .40 71 .49 12 .47 67 .07 Antifreeze 67 .8 162 .9 70 .20 153 81 . 72 90 . 126 .46 73 .01 120 .68 73 .84 146 .62 73 .91 136 .39 Brake fluid 3 .8 33 .1 3 .90 31 95 . 4 14 . 27 33 . 4 30 . 27 78 . 4 41 . 34 10 . 4 .42 31 .76 Fluid for automatic 4 .7 52 .7 4 .89 50 11 . 5 68 . 47 38 . 6 13 . 48 88 . 6 68 . 62 11 . 6 .71 57 .99 transmission Total 294.04 1,975.44 301.96 1,835.61 306.07 1,512.92 308.59 1,445.91 312.04 1,706.09 315.24 1,609.29 * AUTOSTAT forecast

Calculation of automotive oil and lubricant market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. l USD mln. l mln. USD Foreign vehicles Engine oil Under 3 1 .69 2 .6 11 .6 9 .0 19 .62 176 .21 3 – 10 1 .53 10 7 . 48 .1 6 .9 73 .44 509 .50 5 19 12 10 – 20 1 .27 5 6 . 25 .3 6 .7 32 .17 215 .63 Over 20 0 .85 1 9 . 8 .7 5 .5 7 .33 40 .59 Total - - - - 20.8 82.1 - 132.57 941.93 Transmission oil Under 3 0 .22 1 .3 - - - - 3 – 10 0 .20 6 .2 16 1 . 7 4 . 3 .23 23 .73 40 140 90 10 – 20 0 .17 3 .4 8 9 . 7 1 . 1 .49 10 .61 Over 20 0 .11 1 .4 3 6 . 6 7 . 0 .40 2 .64 Total - - - - 12.4 28.6 - 5.11 36.98 Antifreeze Under 3 0 .33 2 .6 5 .5 3 .3 1 .84 6 .12 3 – 10 0 .30 10 7 . 84 .5 2 .5 25 .36 63 .85 30 90 60 10 – 20 0 .25 5 6 . 45 .0 2 .3 11 .25 26 .09 Over 20 0 .17 1 9 . 15 .4 2 .2 2 .56 5 .71 Total - - - - 20.8 144.9 - 41.01 101.77 Brake fluid Under 3 0 .30 2 .6 - - - - 3 – 10 0 .27 10 7 . 6 .4 10 .9 1 .71 18 .58 45 90 67 5. 10 – 20 0 .22 5 6 . 3 .4 10 .6 0 .75 7 .95 Over 20 0 .15 1 9 . 1 .2 7 .0 0 .17 1 .19 Total - - - - 20.8 10.9 - 2.63 27.72

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Automotive oil and lubricants

Calculation of automotive oil and lubricant market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. l USD mln. l mln. USD Foreign vehicles Fluid for automatic transmission Under 3 0 .25 1 .3 - - - - 3 – 10 0 .23 4 .5 20 2 . 9 4 . 4 .55 42 .95 60 100 80 10 – 20 0 .19 2 .2 9 9 . 9 1 . 1 .85 16 .79 Over 20 0 .13 0 .5 2 2 . 8 4 . 0 .28 2 .37 Total - - - - 8.4 32.3 - 6.68 62.11 Total Under 3 ------26.65 191.49 3 – 10 ------107.33 557.33 10 – 20 ------37.21 185.29 Over 20 ------9.72 40.91 Total ------180.91 975.03 Russian brands Engine oil Under 3 2 .00 0 .7 2 .9 7 .2 5 .81 41 .84 3 – 10 1 .80 3 2 . 13 .9 5 .6 24 .97 140 .46 5 15 10 10 – 20 1 .50 5 3 . 24 .3 5 .5 36 .44 199 .95 Over 20 1 .00 3 3 . 14 .9 4 .5 14 .92 67 .59 Total - - - - 12.5 53.1 - 82.15 449.85 Transmission oil Under 3 0 .27 0 .7 - - - - 3 – 10 0 .24 3 .2 10 3 . 5 1 . 2 .48 12 .55 60 90 75 10 – 20 0 .20 5 .3 17 1 . 4 8 . 3 .42 16 .31 Over 20 0 .13 3 .3 10 5 . 4 0 . 1 .40 5 .65 Total - - - - 12.5 37.9 - 7.29 34.51 Antifreeze Under 3 0 .33 0 .7 1 .4 1 .7 0 .46 0 .78 3 – 10 0 .30 3 2 . 36 .5 1 .5 10 .94 16 .86 45 75 60 10 – 20 0 .25 5 3 . 61 .4 1 .3 15 .35 19 .78 Over 20 0 .17 3 2 . 36 .4 1 .2 6 .07 7 .43 Total - - - - 12.4 134.3 - 32.82 44.86 Brake fluid Under 3 0 .30 0 .7 - - - - 3 – 10 0 .27 3 .2 2 3 . 3 8 . 0 .60 2 .29 45 90 67 .5 10 – 20 0 .22 5 .3 3 7 . 3 7 . 0 .83 3 .10 Over 20 0 .15 3 .3 2 3 . 2 9 . 0 .34 0 .99 Total - - - - 12.5 8.3 - 1.77 6.38 Total Under 3 ------6.27 42.62 3 – 10 ------38.99 172.16 10 – 20 ------56.05 239.14 Over 20 ------22.73 81.65 Total ------124.04 535.59 Total Under 3 - - - - 3.3 - - 27.73 224.95 3 – 10 - - - - 13.9 - - 147.28 830.77 10 – 20 - - - - 11.0 - - 103.56 516.21 Over 20 - - - - 5.2 - - 33.47 134.16 Total - - - - 33.4 - - 312.04 1,706.09

Other marketing reports can be ordered at AUTOSTAT analytic agency. 24 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Automotive filters

Capacity of the Russian aftermarket of filters for passenger cars was 118.7 million Market structure in 2017 units last year. That is $1.15 billion in terms of money. Such volumes of consumption are connected with high frequency of filter elements replacement and their wide range. Oil filters are in the most popular demand; the annual capacity of their market is Oil filter 41% about 48 million units (41%) or almost $294 million (25%). Oil filters are replaced as often as engine oil. We should also mention that oil fil- Fuel filter 12% 118.70 ters for foreign cars are on average 2.4 times more expensive than those for domestic mln. un. Air filter 25% vehicles. The share of engine air filters is much less as they are replaced less often. They form a Cab air filter 22% quarter (30.15 million units) of the filter aftermarket capacity, that is almost $297 million. At that foreign cars require air filter replacement twice less often than domestic models as many foreign manufacturers allow enlarged replacement age for air filter elements. Domestic cars started to be equipped with cab air filters quite recently, but these filters appeared in premium-class foreign cars more than 30 years ago. However the cab air filter market is growing every year in terms of numbers, and they are leading in terms Oil filter 25% of money (41% share). According to our evaluation passenger car parc required 25.89 1,153.00 Fuel filter 8% million cab filters, that is over $475 million in terms of money. This difference is a result mln. USD of their high price as well as the fact that over 80% of this market belongs to cab filters Air filter 26% for foreign vehicles. Cab air filter 41% The fuel filter aftermarket is the least numerous: 14.72 million units and $87.3 million. That is a result of rather low average cost allied with long operational life.

Automotive filter market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Oil filter 46 .33 357 .92 47 .67 339 79 . 47 61 . 262 52 . 47 90 . 248 86 . 47 94 . 293 96 . 48 .19 278 .77 Fuel filter 14 .53 90 .77 14 .43 85 67 . 14 44 . 69 37 . 14 51 . 68 26 . 14 72 . 87 30 . 14 .87 83 .88 Air filter 29 .33 355 .92 29 .73 336 22 . 29 59 . 252 95 . 29 07 . 232 50 . 30 15 . 296 69 . 30 .53 285 .15 Cab air filter 21 .83 604 .45 25 .18 593 .42 25 36 . 435 15 . 25 39 . 403 .91 25 .89 475 .06 26 .09 452 .57 Total 112.01 1,409.06 117.01 1,355.09 116.99 1,019.99 116.87 953.53 118.70 1,153.00 119.69 1,100.36 * AUTOSTAT forecast

Calculation of automotive filter market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Oil filter Under 3 1 .69 2 .6 2 .6 10 .1 4 .36 43 .92 3 – 10 1 .53 10 7 . 10 .7 7 .6 16 .32 124 .80 5 19 12 10 – 20 1 .27 5 6 . 5 .6 7 .4 7 .15 52 .78 Over 20 0 .85 1 9 . 1 .9 7 .2 1 .63 11 .74 Total - - - - 20.8 20.8 - 29.46 233.24 Fuel filter Under 3 0 .50 1 .8 0 .7 15 .8 0 .36 5 .69 3 – 10 0 .45 7 0 . 7 .0 12 .3 3 .13 38 .58 10 70 40 10 – 20 0 .38 4 2 . 4 .2 12 .2 1 .58 19 .28 Over 20 0 .25 1 6 . 1 .6 11 .8 0 .41 4 .83 Total - - - - 14.6 13.5 - 5.48 68.39 Air filter Under 3 0 .89 2 .6 2 .6 19 .6 2 .29 44 .71 3 – 10 0 .80 10 7 . 10 .7 15 .7 8 .56 134 .31 5 45 22 .5 10 – 20 0 .67 5 6 . 5 .6 15 .2 3 .75 56 .85 Over 20 0 .44 1 9 . 1 .9 14 .5 0 .85 12 .35 Total - - - - 20.8 20.8 - 15.45 248.22 Cab air filter Under 3 1 .33 2 .6 2 .5 26 .5 3 .40 89 .96 3 – 10 1 .20 10 7 . 10 .3 20 .9 12 .33 257 .83 10 20 15 10 – 20 1 .00 5 6 . 4 .5 20 .3 4 .50 91 .26 Over 20 0 .67 1 9 . 0 .7 19 .1 0 .45 8 .57 Total - - - - 20.8 18.0 - 20.67 447.62

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 25 Passenger car component and spare part market in Russia MARKETING REPORT

Automotive filters

Calculation of automotive filter market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Total Under 3 ------10.40 184.28 3 – 10 ------40.33 555.52 10 – 20 ------16.98 220.16 Over 20 ------3.34 37.50 Total ------71.06 997.46 Russian brands Oil filter Under 3 2 .00 0 .7 0 .7 4 .2 1 .38 5 .74 3 – 10 1 .80 3 2 . 3 .2 3 .3 5 .81 19 .27 5 15 10 10 – 20 1 .50 5 3 . 5 .3 3 .2 8 .01 25 .79 Over 20 1 .00 3 3 . 3 .3 3 .0 3 .28 9 .92 Total - - - - 12.5 12.5 - 18.48 60.72 Fuel filter Under 3 1 .00 0 .7 0 .7 2 .6 0 .69 1 .82 3 – 10 0 .90 3 2 . 3 .2 2 .1 2 .90 6 .12 10 30 20 10 – 20 0 .75 5 3 . 5 .3 2 .0 4 .00 8 .00 Over 20 0 .50 3 3 . 3 .3 1 .8 1 .64 2 .97 Total - - - - 12.5 12.5 - 9.24 18.91 Air filter Under 3 1 .60 0 .7 0 .7 4 .4 1 .11 4 .82 3 – 10 1 .44 3 2 . 3 .2 3 .5 4 .65 16 .03 10 15 12 5. 10 – 20 1 .20 5 3 . 5 .3 3 .2 6 .41 20 .23 Over 20 0 .80 3 3 . 3 .2 2 .9 2 .54 7 .39 Total - - - - 12.5 12.4 - 14.71 48.47 Cab air filter Under 3 1 .60 0 .7 0 .7 6 .0 1 05 . 6 .26 3 – 10 1 .44 3 .2 2 6 . 5 1 . 3 .72 19 .00 10 15 12 .5 10 – 20 1 .20 5 .3 0 4 . 4 8 . 0 .45 2 .17 Over 20 0 .80 3 .3 - - - Total - - - - 12.5 3.6 - 5.22 27.44 Total Under 3 ------4.23 18.64 3 – 10 ------17.07 60.42 10 – 20 ------18.87 56.19 Over 20 ------7.46 20.29 Total ------47.64 155.54 Total Under 3 - - - - 3.3 - - 14.63 202.92 3 – 10 - - - - 13.9 - - 57.41 615.94 10 – 20 - - - - 11.0 - - 35.85 276.36 Over 20 - - - - 5.2 - - 10.80 57.79 Total - - - - 33.4 - - 118.70 1,153.00

Other marketing reports can be ordered at AUTOSTAT analytic agency. 26 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Brake system parts

In 2017 the total capacity of the brake system component market in Russia came up to Market structure in 2017 almost $1.24 billion. In terms of numbers that is 33.32 million parts sold. Front brake shoes of disk brake are replaced more often than any other components of brake system, as they take up to 70% of the load during the car slowing down. Their Brake shoes 62% operation life depends on the driving style. The average operation mileage (rated life) is about 30,000 - 40,000 km, which is on average once every 2 – 3 years. 33.32 Brake disk 23% Last year the total brake shoe market in Russia was $450 million (36% share) or 20.51 mln. un. Brake drum 7% million complete sets, which is 62% of the market. Brake hose 8% Front and rear brake disks are replaced much less often. In case of normal operating regime they are usually enough for at least 2 complete sets of brake shoes. Lastyear the Russian brake disk market was 7.69 million units in terms of numbers, which is about 23% of the total market. However, in terms of money this market is more than others – $533.39 million (43% share). Brake shoes 36% We should also mention that almost all Russian vehicles have rear drum brakes. More- over there are still a lot of vehicles with front drum brakes. Foreign car parc has also got 1,235.97 Brake disk 43% a lot of vehicles with rear drum brakes. The aftermarket of these elements is 2.35 million mln. USD Brake drum 12% complete sets, which is $147.65 million in terms of money. Brake hose 9% Brake hoses are replaced much more seldom. They are worn due to rubber aging. The total volume of the hose market is 2.77 million complete sets for $104.95 million.

Brake system part market capacity Name 2013 2014 2015 2016 2017 2018* (complete set) mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Brake shoes 18 .56 457 .81 19 .13 458 38 . 19 88 . 369 78 . 20 26 . 369 92 . 20 51 . 449 98 . 20 .64 425 .49 Brake disk 6 .11 493 .05 6 .51 499 74 . 7 05 . 416 .91 7 .42 429 .31 7 .69 533 .39 7 .73 502 .58 Brake drum 2 .24 172 .08 2 .23 159 83 . 2 30 . 123 .94 2 .34 122 .19 2 .35 147 .65 2 .34 137 .97 Brake hose 2 .23 101 .94 2 .36 101 35 . 2 55 . 82 .49 2 .68 84 .57 2 .77 104 .95 2 .79 98 .98 Total 29.14 1,224.89 30.23 1,219.31 31.79 993.13 32.70 1,005.98 33.32 1,235.97 33.51 1,165.02 * AUTOSTAT forecast

Calculation of brake system part market capacity Age group Name Operation life, th. km Parc Volume Price Market capacity of the vehicle, Coefficient (complete set) years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Front brake shoes Under 3 0 .50 2 .6 0 .8 39 .3 0 .53 16 .42 3 – 10 0 .45 10 .7 10 7 . 30 5 . 4 .83 146 .93 20 60 40 10 – 20 0 .38 5 .6 5 6 . 29 9 . 1 .67 62 .99 Over 20 0 .25 1 .9 1 9 . 24 4 . 0 .44 11 .71 Total - - - - 20.8 19.1 - 7.48 238.04 Rear brake shoes Under 3 0 .29 2 .6 - - - - 3 – 10 0 .26 10 7 . 10 .7 35 .9 2 .75 98 .66 40 100 70 10 – 20 0 .21 5 6 . 5 .6 34 .8 1 .21 41 .91 Over 20 0 .14 1 9 . 1 .9 29 .4 0 .27 8 .07 Total - - - - 20.8 18.2 - 4.23 148.64 Front brake disks Under 3 0 .25 2 .6 - - - - 3 – 10 0 .23 10 .7 10 7 . 81 7 . 2 .41 196 .59 50 110 80 10 – 20 0 .19 5 .6 5 6 . 78 0 . 1 .05 82 .22 Over 20 0 .13 1 .9 1 9 . 69 5 . 0 .24 16 .70 Total - - - - 20.8 18.2 - 3.70 295.51 Rear brake disks Under 3 0 .20 2 .6 - - - - 3 – 10 0 .18 10 .7 6 7 . 94 0 . 1 .20 113 .18 80 120 100 10 – 20 0 .15 5 .6 3 5 . 90 4 . 0 .53 47 .68 Over 20 0 .10 1 .9 1 2 . 84 8 . 0 .12 10 .19 Total - - - - 20.8 11.4 - 1.85 171.04

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 27 Passenger car component and spare part market in Russia MARKETING REPORT

Brake system parts

Calculation of brake system part market capacity

Name Age group Operation life, th. km Parc Volume Price Market capacity (complete set) of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Brake drums Under 3 0 .17 2 .6 - - - - 3 – 10 0 .15 10 .7 4 0 . 108 3 . 0 .60 65 .19 100 140 120 10 – 20 0 .13 5 .6 2 1 . 101 5 . 0 .26 26 .75 Over 20 0 .08 1 .9 0 7 . 95 9 . 0 .06 5 .76 Total - - - - 20.8 6.8 - 0.93 97.70 Brake hoses Under 3 0 .13 2 .6 - - - - 3 – 10 0 .12 10 7 . 10 .7 50 .2 1 .28 64 .44 120 180 150 10 – 20 0 .10 5 6 . 5 .6 47 .6 0 .56 26 .77 Over 20 0 .07 1 9 . 1 .9 43 .3 0 .13 5 .55 Total - - - - 20.8 18.2 - 1.97 96.77 Total Under 3 ------0.42 16.42 3 – 10 ------13.06 684.98 10 – 20 ------5.72 288.33 Over 20 ------1.30 57.98 Total ------20.51 1,047.70 Russian brands Front brake shoes Under 3 0 .67 0 .7 0 .7 8 .1 0 46 . 3 .73 3 – 10 0 .60 3 .2 3 2 . 6 3 . 1 .94 12 .24 20 40 30 10 – 20 0 .50 5 .3 5 3 . 6 2 . 2 .67 16 .54 Over 20 0 .33 3 .3 2 8 . 5 2 . 0 .95 4 .87 Total - - - - 12.5 12.1 - 6.01 37.39 Rear brake shoes Under 3 0 .29 0 .7 - - - - 3 – 10 0 .26 3 2 . 3 .2 11 .3 0 .83 9 .34 50 90 70 10 – 20 0 .21 5 3 . 5 .3 10 .6 1 .14 12 .10 Over 20 0 .14 3 3 . 3 .3 9 .5 0 .47 4 .47 Total - - - - 12.5 11.8 - 2.44 25.91 Front brake disks Under 3 0 .25 0 .7 - - - - 3 – 10 0 .23 3 .2 3 2 . 33 1 . 0 .73 24 .04 60 100 80 10 – 20 0 .19 5 .3 5 3 . 31 8 . 1 .00 31 .80 Over 20 0 .13 3 .3 3 3 . 26 8 . 0 .41 11 .00 Total - - - - 12.5 11.8 - 2.14 66.84 Brake drums Under 3 0 .17 0 .7 - - - - 3 – 10 0 .15 3 2 . 3 .2 37 .9 0 .48 18 .33 100 140 120 10 – 20 0 .13 5 3 . 5 .3 35 .2 0 .67 23 .52 Over 20 0 .08 3 3 . 3 .3 29 .6 0 .27 8 .10 Total - - - - 12.5 11.8 - 1.42 49.95 Brake hoses Under 3 0 .13 0 .7 - - - - 3 – 10 0 .12 3 2 . 2 .3 11 .1 0 .27 3 .02 120 180 150 10 – 20 0 .10 5 3 . 3 .7 10 .0 0 .37 3 .75 Over 20 0 .07 3 3 . 2 .3 9 .3 0 .15 1 .42 Total - - - - 12.5 8.3 - 0.80 8.18 Total Under 3 ------0.46 3.73 3 – 10 ------4.25 66.97 10 – 20 ------5.86 87.71 Over 20 ------2.25 29.85 Total ------12.81 188.27 Total Under 3 - - - - 3.3 - - 0.88 20.15 3 – 10 - - - - 13.9 - - 17.31 751.95 10 – 20 - - - - 11.0 - - 11.58 376.03 Over 20 - - - - 5.2 - - 3.55 87.83 Total - - - - 33.4 - - 33.32 1235.97

Other marketing reports can be ordered at AUTOSTAT analytic agency. 28 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Suspension units and parts

Last year the suspension part market volume in Russia came up to 48.9 million Market structure in 2017 units or $2.43 billion in terms of money. The share of components for foreign cars is over 89% or $2.17 billion. Front shock absorbers Taking into account the poor quality of Russian roads and statistics on vehicle (complete set) 14% operation, trunnion balls, shock absorbers and stabilizer links are the most often Rear shock absorbers replaced suspension parts. (complete set) 11% According to AUTOSTAT calculation these three components generate 88% of 48.90 Strut support 7% the total market of suspension parts and units in terms of numbers. mln. un. We should also mention that trunnion balls are the sales leaders in this group Stabilizer struts 27% – 15.35 million units. That is a result of their frequent replacement especially in the Silent blocks (complete set) 10% LADA Classic. However despite good sales, the proceeds from these parts are not Trunnion ball 31% very high – about $350 million. Shock absorbers are the leaders in terms of money. The share of front shock absorbers is 31% of the market ($739.74 million), rear shock absorbers generate Front shock absorbers 23% of the market ($568.4 million), as their operation life is longer. In terms of (complete set) 31% numbers front and rear shock absorbers have a quarter (12.4 million sets) of the Rear shock absorbers total suspension part market. 2,432.64 (complete set) 23% Stabilizer links are on the third place of the sales rating ($483.54 million or 13.15 mln. USD Strut support 7% million units). They are widespread in suspension system of foreign cars and require Stabilizer struts 20% quite often replacement – every 70,000 km of mileage. For some brands the opera- tion life of these parts can be twice less due do the design. Silent blocks (complete set) 5% Trunnion ball 14%

Suspension unit and part market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Front shock absorbers (com . set) 5 .94 778 .89 6 .12 763 .08 6 .41 625 .70 6 58 . 623 .32 6 .69 739 .74 6 .71 685 .26 Rear shock absorbers (com . set) 4 .66 573 .65 4 .85 568 .23 5 .15 467 .21 5 33 . 468 .16 5 .46 568 .40 5 .47 526 .72 Strut support 2 .54 167 .04 2 .76 165 37 . 3 .06 136 03 . 3 26 . 137 .79 3 .42 168 .51 3 .45 157 .47 Stabilizer struts 10 .03 534 .50 11 .06 506 92 . 12 .04 392 17 . 12 58 . 397 04 . 13 .15 483 .54 13 .37 451 .65 Silent blocks (complete set) 3 .97 118 .19 4 .17 115 .91 4 .49 95 .68 4 69 . 99 .48 4 .85 122 .92 4 .87 114 .31 Trunnion ball 14 .02 366 .35 14 .36 350 48 . 14 .83 278 31 . 15 09 . 285 12 . 15 .35 349 .53 15 .45 320 .47 Total 41.17 2,538.62 43.32 2,469.99 45.97 1,995.09 47.53 2,010.92 48.90 2,432.64 49.32 2,255.89 * AUTOSTAT forecast

Calculation of suspension unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Front shock absorbers Under 3 0 .25 2 .6 0 .3 261 .2 0 .06 16 .79 (complete set) 3 – 10 0 .23 10 7 . 10 .7 178 .0 2 .41 428 .50 60 100 80 10 – 20 0 .19 5 6 . 5 .6 141 .3 1 .05 149 .01 Over 20 0 .13 1 9 . 1 .9 117 .7 0 .24 28 .29 Total - - - - 20.8 18.5 - 3.77 622.60 Rear shock absorbers Under 3 0 .22 2 .6 0 .1 207 .7 0 .03 5 .94 (complete set) 3 – 10 0 .20 10 7 . 10 .7 161 .5 2 .14 345 .59 80 100 90 10 – 20 0 .17 5 6 . 5 .6 135 .5 0 .94 127 .07 Over 20 0 .11 1 9 . 1 .9 109 .5 0 .21 23 .39 Total - - - - 20.8 18.4 - 3.32 501.99 Strut support Under 3 0 .17 2 .6 - - - - 3 – 10 0 .15 10 .7 10 7 . 60 4 . 1 .60 96 .95 90 150 120 10 – 20 0 .13 5 .6 5 6 . 56 1 . 0 .70 39 .47 Over 20 0 .08 1 .9 1 9 . 45 8 . 0 .16 7 .34 Total - - - - 20.8 18.2 - 2.47 143.76 Stabilizer struts Under 3 0 .29 2 .6 2 .2 50 .2 0 .62 31 .36 3 – 10 0 .26 10 .7 30 0 . 38 8 . 7 .70 298 .69 30 110 70 10 – 20 0 .21 5 .6 15 7 . 38 2 . 3 .37 128 .76 Over 20 0 .14 1 .9 5 4 . 26 7 . 0 .77 20 .53 Total - - - - 20.8 53.3 - 12.47 479.34

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 29 Passenger car component and spare part market in Russia MARKETING REPORT

Suspension units and parts

Calculation of suspension unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Silent blocks (complete set) Under 3 0 .22 2 .6 - - - - 3 – 10 0 .20 10 .7 10 7 . 34 6 . 2 .14 73 .98 70 110 90 10 – 20 0 .17 5 .6 5 6 . 33 4 . 0 .94 31 .35 Over 20 0 .11 1 .9 1 9 . 33 3 . 0 .21 7 .11 Total - - - - 20.8 18.2 - 3.29 112.44 Trunnion ball Under 3 0 .25 2 .6 - - - - 3 – 10 0 .23 10 7 . 23 .0 41 .9 5 .18 216 .77 60 100 80 10 – 20 0 .19 5 6 . 12 .1 35 .2 2 .27 79 .93 Over 20 0 .13 1 9 . 4 .0 32 .6 0 .50 16 .46 Total - - - - 20.8 39.1 - 7.95 313.16 Total Under 3 ------0.72 54.09 3 – 10 ------21.17 1,460.49 10 – 20 ------9.27 555.58 Over 20 ------2.10 103.12 Total ------33.26 2,173.28 Russian brands Front shock absorbers Under 3 0 .33 0 .7 0 .2 59 .5 0 07 . 4 .11 (complete set) 3 – 10 0 .30 3 .2 3 2 . 46 1 . 0 .97 44 .63 40 80 60 10 – 20 0 .25 5 .3 5 3 . 38 1 . 1 .33 50 .86 Over 20 0 .17 3 .3 3 3 . 32 1 . 0 .55 17 .53 Total - - - - 12.5 12.1 - 2.92 117.14 Rear shock absorbers Under 3 0 .25 0 .7 - - - - (complete set) 3 – 10 0 .23 3 .2 3 2 . 36 1 . 0 .73 26 .21 60 100 80 10 – 20 0 .19 5 .3 5 3 . 29 0 . 1 .00 29 .08 Over 20 0 .13 3 .3 3 3 . 27 1 . 0 .41 11 .12 Total - - - - 12.5 11.8 - 2.14 66.41 Strut support Under 3 0 .20 0 .7 - - - - 3 – 10 0 .18 3 .2 2 3 . 27 8 . 0 .42 11 .71 80 120 100 10 – 20 0 .15 5 .3 2 9 . 25 4 . 0 .44 11 .21 Over 20 0 .10 3 .3 0 8 . 21 9 . 0 .08 1 .82 Total - - - - 12.5 6.1 - 0.95 24.75 Stabilizer struts Under 3 0 .14 0 .7 - - - - 3 – 10 0 .13 3 2 . 2 .3 6 .3 0 .30 1 .91 100 180 140 10 – 20 0 .11 5 3 . 2 .9 6 .2 0 .32 1 .95 Over 20 0 .07 3 3 . 0 .8 5 .9 0 .06 0 .35 Total - - - - 12.5 6.1 - 0.68 4.20 Silent blocks (complete set) Under 3 0 .18 0 .7 - - - - 3 – 10 0 .16 3 2 . 3 .2 6 .8 0 .53 3 .61 80 140 110 10 – 20 0 .14 5 3 . 5 .3 6 .8 0 .73 4 .93 Over 20 0 .09 3 3 . 3 .3 6 .5 0 .30 1 .94 Total - - - - 12.5 11.8 - 1.55 10.48 Trunnion ball Under 3 0 .33 0 .7 0 .2 8 .2 0 08 . 0 .67 3 – 10 0 .30 3 .2 7 6 . 5 3 . 2 .28 12 .18 30 90 60 10 – 20 0 .25 5 .3 13 7 . 5 0 . 3 .43 17 .10 Over 20 0 .17 3 .3 9 6 . 4 0 . 1 .60 6 .43 Total - - - - 12.5 31.2 - 7.40 36.37 Total Under 3 ------0.15 4.78 3 – 10 ------5.23 100.25 10 – 20 ------7.25 115.13 Over 20 ------3.00 39.20 Total ------15.63 259.36 Total Under 3 - - - - 3.3 - - 0.87 58.87 3 – 10 - - - - 13.9 - - 26.40 1,560.74 10 – 20 - - - - 11.0 - - 16.53 670.72 Over 20 - - - - 5.2 - - 5.10 142.32 Total - - - - 33.4 - - 48.90 2,432.64

Other marketing reports can be ordered at AUTOSTAT analytic agency. 30 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Steering units and parts

Steering system of a modern passenger car is a complex system including a wide Market structure in 2017 range of parts, units and aggregates. Most of them have quite long operation life, and steering tie-rod ends are usually repaired or replaced the most frequently and steering racks are repaired less often. Steering tie-rod end According to our evaluation in 2017 the total Russian market of steering components (complete set) 68% for passenger cars was 9.62 million units in terms of numbers and $884.54 million in 9.62 Steering rack 20% terms of money. mln. un. Steering tie-rod ends of both foreign and domestic production need replacement Combination lever 12% the most often. The operation life of this component depends on the road quality and the driving style. Its average operation life is from 70,000 km (foreign cars) to 80,000 km (domestic cars). The average costs of the domestic and foreign analogues differ a lot ($9.6 vs. $47.4 for a complete set). According to AUTOSTAT evaluation, last year over 6.5 million complete sets of steer- Steering tie-rod end ing tie-rod ends were sold in our country for $221.68 million. (complete set) 25% Steering rack is the most expensive unit of steering system. In terms of money this 884.54 Steering rack 73% element has the largest share of the market: 66% for domestic cars ($60.51 million), mln. USD 73% for foreign cars ($581.5 million). On the other hand, steering rack is quite reliable Combination lever 2% unit with operation life of over 100,000 km. Many car owners repair it to prolong its operation age. The sales of this component are 0.77 and 1.19 million units for domestic and foreign vehicles respectively. Combination lever, which is used in the LADA Classic, Moskvich, Volga and some foreign cars is frequently replaced. However, as it is not very expensive ($47.6 for for- eign and $11.9 for domestic cars), the market capacity of this component is quite low – $20.84 million.

Steering unit and part market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Steering tie-rod end (complete set) 5 55 . 239 .26 5 82 . 237 .74 6 .17 193 .35 6 .36 191 16 . 6 52 . 221 68 . 6 .56 206 .12 Steering rack 1 51 . 613 26 . 1 63 . 606 .04 1 .78 514 .72 1 90 . 541 .59 1 .96 642 .01 2 .05 639 .96 Combination lever 1 43 . 32 97 . 1 .31 27 89 . 1 23 . 18 .67 1 .18 17 .90 1 .14 20 .84 1 .13 20 .15 Total 8.49 885.48 8.76 871.67 9.18 726.74 9.45 750.66 9.62 884.54 9.73 866.22 * AUTOSTAT forecast

Calculation of steering unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Steering tie-rod end Under 3 0 .29 2 .6 0 .5 61 .7 0 .15 9 .07 (complete set) 3 – 10 0 .26 10 7 . 10 .7 47 .0 2 .75 129 .41 40 100 70 10 – 20 0 .21 5 6 . 5 .6 43 .2 1 .21 52 .04 Over 20 0 .14 1 9 . 1 .9 37 .8 0 .27 10 .38 Total - - - - 20.8 18.2 - 4.38 200.90 Steering rack Under 3 0 .15 2 .6 0 .00 0 .00 3 – 10 0 .14 10 7 . 4 .1 520 .6 0 .56 293 .08 100 160 130 10 – 20 0 .12 5 6 . 4 .8 491 .0 0 .55 270 .85 Over 20 0 .08 1 9 . 1 .0 228 .5 0 .08 17 .57 Total - - - - 20.8 9.8 - 1.19 581.50 Combination lever Under 3 0 .25 2 .6 0 .00 0 .00 3 – 10 0 .23 10 .7 0 .00 0 .00 50 110 80 10 – 20 0 .19 5 .6 0 5 . 49 9 . 0 .09 4 .73 Over 20 0 .13 1 .9 0 9 . 45 3 . 0 .11 5 .11 Total - - - - 20.8 1.4 - 0.21 9.85 Total Under 3 - - - - 7.7 0.5 - 0.15 9.07 3 – 10 - - - - 32.1 14.8 - 3.31 422.49 10 – 20 - - - - 16.9 10.9 - 1.85 327.62 Over 20 - - - - 5.8 3.8 - 0.46 33.07 Total - - - - 62.5 29.5 5.78 792.25

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 31 Passenger car component and spare part market in Russia MARKETING REPORT

Steering units and parts

Calculation of steering unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Russian brands Steering tie-rod end Under 3 0 .25 0 .7 0 .00 0 .00 (complete set) 3 – 10 0 .23 3 2 . 3 .2 10 .2 0 .73 7 .39 60 100 80 10 – 20 0 .19 5 3 . 5 .3 9 .6 1 .00 9 .66 Over 20 0 .13 3 3 . 3 .3 9 .1 0 .41 3 .74 Total - - - - 12.5 11.8 - 2.14 20.79 Steering rack Under 3 0 .16 0 .7 0 .00 0 .00 3 – 10 0 .14 3 2 . 2 .3 82 .4 0 .34 27 .83 80 170 125 10 – 20 0 .12 5 3 . 3 .0 76 .8 0 .36 27 .92 Over 20 0 .08 3 3 . 0 .9 68 .5 0 .07 4 .76 Total - - - - 12.5 6.2 - 0.77 60.51 Combination lever Under 3 0 .25 0 .7 0 .00 0 .00 3 – 10 0 .23 3 2 . 0 .9 12 .6 0 .20 2 .51 50 110 80 10 – 20 0 .19 5 3 . 2 .3 11 .9 0 .43 5 .13 Over 20 0 .13 3 3 . 2 .4 11 .1 0 .30 3 .36 Total - - - - 12.5 5.6 - 0.93 11.00 Total Under 3 ------0.00 0.00 3 – 10 ------1.26 37.72 10 – 20 ------1.80 42.71 Over 20 ------0.78 11.86 Total ------3.84 92.29 Total Under 3 - - - - 3.3 - - 0.15 9.07 3 – 10 - - - - 13.9 - - 4.58 460.20 10 – 20 - - - - 11.0 - - 3.65 370.34 Over 20 - - - - 5.2 - - 1.25 44.93 Total - - - - 33.4 - - 9.62 884.54

Other marketing reports can be ordered at AUTOSTAT analytic agency. 32 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Clutch units and parts

According to AUTOSTAT evaluation, the aftermarket of clutch parts for passenger Market structure in 2017 cars in Russia exceeded 6 million parts or $773.74 million last year. 94% of this amount ($726.9 million) belongs to clutch assembly as a result of its high price. As the average operation life of this component depends on the driving style, in Clutch assembly 54% case of correct operation clutch of a modern passenger car can work for quite a long time. The average clutch operation age is from 80,000 to 140,000 km for foreign cars 6.10 Clutch disk 18% and 90,000 km for domestic models. mln. un. Clutch cover 10% We should also mention that there is a difference in replacement and repairs of Clutch bearing 18% clutch depending on the country of its production. So most owners of foreign cars replace clutch assembly. As for domestic cars, the owners mostly replace only separate parts and units (clutch disks, clutch bearings). All these facts affect the Russian clutch market capacity. E.g. clutch assembly is rather expensive: $53.4 for domestic brands and on average $231.9 for foreign vehicles. The average price of a clutch disk for domestic cars is $21.3. Clutch cover has longer Clutch assembly 94% operation life than clutch disk (on average 120,000 km vs. 90,000 km). Clutch disk 3% Clutch bearing is usually replaced with clutch pressure plate – they are worn at 773.74 almost the same time. mln. USD Clutch cover 2% Clutch bearing 1%

Clutch unit and part market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Clutch assembly 2 .49 647 .54 2 .68 668 .85 2 .95 634 76 . 3 13 . 656 43 . 3 .28 726 .91 3 .31 579 .34 Clutch disk 1 .23 31 .76 1 .19 28 .48 1 .17 22 41 . 1 16 . 21 39 . 1 .11 24 .10 1 .10 22 .22 Clutch cover 0 .64 21 .83 0 .61 19 .19 0 .61 13 72 . 0 60 . 13 18 . 0 .59 15 .18 0 .58 14 .02 Clutch bearing 1 .23 9 .35 1 .19 8 .22 1 .17 7 09 . 1 16 . 6 68 . 1 .11 7 .55 1 .10 6 .97 Total 5.59 710.49 5.67 724.73 5.91 677.98 6.05 697.68 6.10 773.74 6.09 622.56 * AUTOSTAT forecast

Calculation of clutch unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Clutch assembly Under 3 0 .18 2 .6 0 .00 0 .00 3 – 10 0 .16 10 7 . 10 .7 274 .6 1 .75 480 .83 80 140 110 10 – 20 0 .14 5 6 . 5 .6 237 .4 0 .77 182 .09 Over 20 0 .09 1 9 . 1 .9 183 .6 0 .17 32 .10 Total - - - - 20.8 18.2 - 2.69 695.02 Russian brands Clutch disk Under 3 0 .22 0 .7 0 .00 0 .00 3 – 10 0 .20 3 2 . 1 .9 23 .3 0 .38 8 .87 60 120 90 10 – 20 0 .17 5 3 . 3 .1 21 .4 0 .52 11 .14 Over 20 0 .11 3 3 . 1 .9 19 .2 0 .21 4 .09 Total - - - - 12.5 6.9 - 1.11 24.10 Clutch cover Under 3 0 .17 0 .7 0 .00 0 .00 3 – 10 0 .15 3 2 . 1 .3 27 .6 0 .20 5 .47 90 150 120 10 – 20 0 .13 5 3 . 2 .2 25 .2 0 .28 6 .99 Over 20 0 .08 3 3 . 1 .4 24 .0 0 .11 2 .72 Total - - - - 12.5 4.9 - 0.59 15.18 Clutch bearing Under 3 0 .22 0 .7 0 .00 0 .00 3 – 10 0 .20 3 .2 1 9 . 7 1 . 0 .38 2 .70 60 120 90 10 – 20 0 .17 5 .3 3 1 . 6 7 . 0 .52 3 .50 Over 20 0 .11 3 .3 1 9 . 6 3 . 0 .21 1 .34 Total - - - - 12.5 6.9 - 1.11 7.55

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 33 Passenger car component and spare part market in Russia MARKETING REPORT

Clutch units and parts

Calculation of clutch unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Russian brands Clutch assembly Under 3 0 .17 0 .7 0 00 . 0 .00 3 – 10 0 .15 3 .2 1 3 . 59 2 . 0 .20 11 .74 90 150 120 10 – 20 0 .13 5 .3 2 2 . 53 1 . 0 .28 14 .72 Over 20 0 .08 3 .3 1 4 . 47 9 . 0 .11 5 .43 Total - - - - 12.5 4.9 - 0.59 31.89 Total Under 3 ------0.00 0.00 3 – 10 ------1.16 28.78 10 – 20 ------1.60 36.35 Over 20 ------0.65 13.58 Total ------3.41 78.72 Total Under 3 - - - - 3.3 - - 0.00 0.00 3 – 10 - - - - 13.9 - - 2.91 509.62 10 – 20 - - - - 11.0 - - 2.36 218.44 Over 20 - - - - 5.2 - - 0.83 45.68 Total - - - - 33.4 - - 6.10 773.74

Other marketing reports can be ordered at AUTOSTAT analytic agency. 34 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Transmission units and parts

Last year transmission part aftermarket in Russia was $886.62 million in terms of Market structure in 2017 money and came up to 24.58 million units in terms of numbers. We should mention that these results were formed with only small and quite cheap automotive components. Such expensive parts and units as cardans, axles assembly, differentials, etc., whose Front-wheel bearing 39% operation life could be prolonged significantly by replacement of smaller components, Rear-wheel bearing 22% were not considered. 24.58 Front hub bearing is one of the most frequently replaced transmission components mln. un. Internal constant-velocity of modern cars. The reason for that is difficult operation conditions, poor road quality universal ball joint 10% and sometimes the driver’s carelessness. The operation life of this component is differ- External constant-velocity ent for different car brands. However its average service life is 95,000 km for foreign universal ball joint 29% cars and a little longer – 105,000 km – for domestic vehicles. The cost of foreign and Russian analogues differs a lot (on average $39.4 vs. $6.7 respectively), and their total market volume is more than $260 million. Front-wheel bearing 29% The average operation life of rear hub bearings is 110,000 km for both foreign and Russian vehicles. The prices are also different ($43 vs. $6.9), the market of this compo- Rear-wheel bearing 22% nent is close to $200 million. 886.62 mln. USD Internal constant-velocity Constant-velocity universal ball joint is one of the most frequently replaced trans- universal ball joint 12% mission parts in front-wheel drive and all-wheel drive vehicles. External constant-velocity universal ball joints have usually shorter service life than External constant-velocity internal ones – that is due to overload and high risk of dust cap mechanical damages, universal ball joint 37% which decrease operation life of the unit several times. So, the market capacity of ex- ternal constant-velocity universal ball joints is almost $325 million, which is the largest share among transmission units and parts.

Transmission unit and part market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Front-wheel bearing 8 .90 219 .40 8 .79 215 .13 9 .12 201 .57 9 .35 208 .33 9 .54 260 .16 9 .74 250 .59 Rear-wheel bearing 4 .12 172 .26 4 .41 176 .68 4 .89 148 .69 5 .21 154 .26 5 .53 196 .15 5 .74 191 .77 Internal constant-velocity 1 .92 116 .68 2 .04 107 .98 2 .06 78 .88 2 .27 82 .15 2 .47 105 .40 2 .63 107 .08 universal ball joint External constant-velocity 5 .34 324 .12 5 .86 318 .72 6 .28 258 .72 6 .77 264 .12 7 .04 324 .91 7 .03 302 .91 universal ball joint Total 20.28 832.46 21.09 818.52 22.34 687.88 23.60 708.86 24.58 886.62 25.14 852.35 * AUTOSTAT forecast

Calculation of transmission unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Front-wheel bearing Under 3 0 .21 2 .6 0 .00 0 .00 3 – 10 0 .19 10 7 . 15 .5 48 .8 2 .93 142 .88 60 130 95 10 – 20 0 .16 5 6 . 11 .2 43 .6 1 .78 77 .39 Over 20 0 .11 1 9 . 3 .8 25 .8 0 .40 10 .43 Total - - - - 20.8 30.5 - 5.11 230.71 Rear-wheel bearing Under 3 0 .18 2 .6 0 .00 0 .00 3 – 10 0 .16 10 .7 12 3 . 52 7 . 2 .01 105 .64 80 140 110 10 – 20 0 .14 5 .6 10 7 . 47 0 . 1 .46 68 .50 Over 20 0 .09 1 .9 3 7 . 29 4 . 0 .33 9 .77 Total - - - - 20.8 26.6 - 3.80 183.91 Internal constant-velocity Under 3 0 .11 2 .6 0 .00 0 .00 universal ball joint 3 – 10 0 .09 10 7 . 70 .8 0 .00 0 .00 100 280 190 10 – 20 0 .08 5 6 . 10 .9 67 .4 0 .86 58 .02 Over 20 0 .05 1 9 . 3 .7 58 .0 0 .19 11 .15 Total - - - - 20.8 14.6 - 1.05 69.17 External constant-velocity Under 3 0 .14 2 .6 0 .00 0 .00 universal ball joint 3 – 10 0 .13 10 7 . 25 .2 60 .5 3 .25 196 .27 90 190 140 10 – 20 0 .11 5 6 . 10 .9 55 .9 1 .17 65 .37 Over 20 0 .07 1 9 . 3 .7 47 .4 0 .26 12 .37 Total - - - - 11.5 39.8 - 4.68 274.01

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 35 Passenger car component and spare part market in Russia MARKETING REPORT

Transmission units and parts

Calculation of transmission unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Total Under 3 ------0.00 0.00 3 – 10 ------8.18 444.79 10 – 20 ------5.26 269.28 Over 20 ------1.19 43.72 Total ------14.64 757.80 Russian brands Front-wheel bearing Under 3 0 .19 0 .7 0 .00 0 .00 3 – 10 0 .17 3 2 . 7 .6 7 .3 1 .30 9 .52 70 140 105 10 – 20 0 .14 5 3 . 14 .7 6 .5 2 .10 13 .59 Over 20 0 .10 3 3 . 10 .8 6 .2 1 .03 6 .35 Total - - - - 12.5 33.1 - 4.43 29.45 Rear-wheel bearing Under 3 0 .18 0 .7 0 .00 0 .00 3 – 10 0 .16 3 2 . 4 .7 7 .5 0 .77 5 .75 80 140 110 10 – 20 0 .14 5 3 . 5 .9 6 .8 0 .80 5 .43 Over 20 0 .09 3 3 . 1 .8 6 .4 0 .17 1 .06 Total - - - - 12.5 12.4 - 1.74 12.24 Internal constant-velocity Under 3 0 .13 0 .7 0 00 . 0 .00 universal ball joint 3 – 10 0 .12 3 .2 5 2 . 26 8 . 0 .63 16 .78 100 200 150 10 – 20 0 .10 5 .3 6 4 . 25 0 . 0 .64 16 .11 Over 20 0 .07 3 .3 2 2 . 22 9 . 0 .15 3 .34 Total - - - - 12.5 13.9 - 1.42 36.23 External constant-velocity Under 3 0 .22 0 .7 0 .00 0 .00 universal ball joint 3 – 10 0 .20 3 2 . 5 .2 22 .3 1 .05 23 .35 70 110 90 10 – 20 0 .17 5 3 . 6 .4 21 .6 1 .07 23 .16 Over 20 0 .11 3 3 . 2 .2 18 .1 0 .24 4 .39 Total - - - - 12.5 13.9 - 2.36 50.90 Total Under 3 ------0.00 0.00 3 – 10 ------3.74 55.40 10 – 20 ------4.62 58.29 Over 20 ------1.58 15.13 Total ------9.94 128.82 Total Under 3 - - - - 3.3 - - 0.00 0.00 3 – 10 - - - - 13.9 - - 11.92 500.20 10 – 20 - - - - 11.0 - - 9.88 327.57 Over 20 - - - - 5.2 - - 2.77 58.86 Total - - - - 33.4 - - 24.58 886.62

Other marketing reports can be ordered at AUTOSTAT analytic agency. 36 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Fuel system units and parts

In 2017 aftermarket of fuel system components came up to 6.62 million units, which is Market structure in 2017 about $352 million in terms of money. Fuel system of modern passenger car includes a wide range of parts and units. However operation life of most of them equals vehicle service life. But real every day car operation Carburetor 6% and the fuel quality can lead to an early replacement of parts and units of the system. The list of such fuel system parts for foreign cars includes injectors and electric fuel 6.62 Mechanical fuel pump 14% pumps. Domestic car parc has higher number of cars with carburetor engines. mln. un. Electric fuel pump 22% As components for foreign cars are more expensive their market in terms of money is much higher than one of the Russian analogues: $260.03 million vs. $92.62 million. Injector 58% The most expensive fuel system unit for replacement is electric fuel pump. In the for- eign vehicles, it costs on average over 2 times more than its domestic analogue: $136.5 vs. $50. The average operation life of the unit depends on the fuel quality, in Russia it is about 160,000 -170,000 km if not to fill the car with obvious counterfeit. As a result last year the total market of electric fuel pumps was almost $124 million (1.46 million units). Mechanical fuel pumps are usually used in vehicles with carburetor engines. The opera- Carburetor 9% tion life of this kind of fuel pumps is usually less than that of electric ones, but they are 352.65 Mechanical fuel pump 2% much cheaper (several times). mln. USD Injectors are the first fuel system elements which react to petrol quality. There are dif- Electric fuel pump 35% ferent ways to clean them, but they should be replaced sooner or later. Their average opera- Injector 53% tion age is from 140 km (for foreign cars) to 165,000 km (for domestic vehicles). Taking into account their high prices and a large parc of vehicles, they generate over a half of the fuel system component market both in terms of numbers and money.

Fuel system unit and part market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Carburetor 0 .69 65 .56 0 .59 51 .07 0 .51 34 63 . 0 .47 29 72 . 0 .43 31 .88 0 .41 29 .02 Mechanical fuel pump 1 .53 18 .92 1 .29 14 .36 1 .10 8 56 . 1 .02 7 69 . 0 .92 8 .26 0 .89 7 .41 Electric fuel pump 0 .97 136 .53 1 .11 135 .80 1 .24 110 .79 1 .34 106 .92 1 .46 123 .85 1 .44 111 .09 Injector 2 .31 151 .33 2 .68 158 .96 3 .08 152 .53 3 .34 154 .58 3 .81 188 .67 3 .50 157 .40 Total 5.50 372.34 5.68 360.20 5.94 306.51 6.18 298.91 6.62 352.65 6.23 304.92 * AUTOSTAT forecast

Calculation of fuel system unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Carburetor Under 3 0 .13 2 .6 0 .00 0 .00 3 – 10 0 .12 10 7 . 0 .00 0 .00 100 200 150 10 – 20 0 .10 5 6 . 0 .00 0 .00 Over 20 0 .07 1 9 . 0 .2 156 .2 0 .01 1 .92 Total - - - - 20.8 0.2 - 0.01 1.92 Mechanical fuel pump Under 3 0 .20 2 .6 0 .00 0 .00 3 – 10 0 .18 10 .7 0 .00 0 .00 100 180 100 10 – 20 0 .15 5 .6 0 .00 0 .00 Over 20 0 .10 1 .9 0 6 . 21 8 . 0 .06 1 .38 Total - - - - 20.8 0.6 - 0.06 1.38 Electric fuel pump Under 3 0 .13 2 .6 0 .1 146 .1 0 .01 1 .41 3 – 10 0 .11 10 7 . 4 .3 138 .9 0 .48 66 .89 90 230 160 10 – 20 0 .09 5 6 . 1 .6 134 .4 0 .15 19 .84 Over 20 0 .06 1 9 . 0 .4 126 .5 0 .03 3 .34 Total - - - - 20.8 6.4 - 0.67 91.48 Injector Under 3 0 .14 2 .6 0 .00 0 .00 3 – 10 0 .13 10 .7 16 0 . 70 3 . 2 .06 144 .98 80 250 140 10 – 20 0 .11 5 .6 2 5 . 60 8 . 0 .27 16 .49 Over 20 0 .07 1 .9 1 1 . 50 0 . 0 .08 3 .78 Total - - - - 20.8 19.6 - 2.41 165.24

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 37 Passenger car component and spare part market in Russia MARKETING REPORT

Fuel system units and parts

Calculation of fuel system unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Total Under 3 ------0.01 1.41 3 – 10 ------2.54 211.87 10 – 20 ------0.42 36.33 Over 20 ------0.18 10.43 Total ------3.15 260.03 Russian brands Carburetor Under 3 0 .13 0 .7 0 .00 0 .00 3 – 10 0 .12 3 2 . 0 .0 80 .1 0 .00 0 .01 100 200 150 10 – 20 0 .10 5 3 . 2 .1 75 .7 0 .21 15 .72 Over 20 0 .07 3 3 . 3 .1 69 .0 0 .21 14 .23 Total - - - - 12.5 5.2 - 0.41 29.96 Mechanical fuel pump Under 3 0 .27 0 .7 0 00 . 0 .00 3 – 10 0 .24 3 .2 0 0 . 9 2 . 0 .00 0 .00 50 100 75 10 – 20 0 .20 5 .3 2 1 . 8 2 . 0 .43 3 .53 Over 20 0 .13 3 .3 3 2 . 7 8 . 0 .43 3 .34 Total - - - - 12.5 5.3 - 0.85 6.87 Electric fuel pump Under 3 0 .12 0 .7 0 .0 67 .1 0 .01 0 .38 3 – 10 0 .11 3 2 . 2 .7 45 .3 0 .29 13 .00 90 250 170 10 – 20 0 .09 5 3 . 5 .7 37 .5 0 .51 18 .99 Over 20 0 .06 3 3 . 0 .00 0 .00 Total - - - - 12.5 8.4 - 0.80 32.37 Injector Under 3 0 .12 0 .7 0 .0 20 .7 0 .00 0 .07 3 – 10 0 .11 3 2 . 3 .2 18 .9 0 .35 6 .64 80 250 165 10 – 20 0 .09 5 3 . 11 .5 16 .0 1 .04 16 .72 Over 20 0 .06 3 3 . 0 .00 0 .00 Total - - - - 12.5 14.7 - 1.40 23.43 Total Under 3 ------0.01 0.45 3 – 10 ------0.64 19.65 10 – 20 ------2.19 54.96 Over 20 ------0.63 17.57 Total ------3.46 92.62 Total Under 3 - - - - 3.3 - - 0.02 1.86 3 – 10 - - - - 13.9 - - 3.18 231.52 10 – 20 - - - - 11.0 - - 2.60 91.28 Over 20 - - - - 5.2 - - 0.81 27.99 Total - - - - 33.4 - - 6.62 352.65

Other marketing reports can be ordered at AUTOSTAT analytic agency. 38 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Exhaust system units and parts

Exhaust system of a modern vehicle is a quite complex set of automotive compo- Market structure in 2017 nents, required regular replacement. Besides pipes, resonators and mufflers, the system includes catalytic converters. This kind of components provides the necessary ecological safety level of emission. Principal muffle 36% We should mention that catalytic converters are too sensitive to fuel quality and en- gine system malfunctions and often break before their operation life is over. 6.91 Resonator 37% It is rather expensive to buy the new unit so most car owners just remove this element mln. un. Down pipe 21% after it had failed. Catalytic converter 6% Resonators and mufflers are the most often replaced exhaust system components. The average operation life of principal muffler for a foreign vehicle is 150,000 km, and the average price is $131.1. Resonator has shorter operation life but costs cheaper (on average $83.2). Down pipe has the highest operation age of all exhaust system components – 170,000 – 175,000 km. Down pipe for foreign cars is more than 5 time more expensive than one for domestic vehicles ($104 vs. $21.6). Principal muffle 35% As the price is quite high some car owners prefer to repair old components not to 544.43 Resonator 25% mln. USD buy new ones. In 2017 the total aftermarket of exhaust system components was $544.43 Down pipe 17% million or 6.91 million units in terms of numbers. Catalytic converter 23%

Exhaust system unit and part market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Principal muffler 2 .23 176 .07 2 .24 167 .18 2 .32 144 .39 2 .39 146 .44 2 .49 187 .72 2 .61 191 .08 Resonator 2 .26 125 .58 2 .29 121 .19 2 .39 107 .51 2 .48 108 .72 2 .59 138 .53 2 .71 139 .45 Down pipe 1 .17 83 .71 1 .19 81 .38 1 .24 70 86 . 1 .31 74 19 . 1 .43 92 .93 1 .58 101 .14 Catalytic converter 0 .46 141 .44 0 .44 127 .89 0 .42 110 .46 0 .42 108 .97 0 .40 125 .25 0 .39 118 .25 Total 6.12 526.81 6.15 497.64 6.37 433.22 6.61 438.32 6.91 544.43 7.29 549.91 * AUTOSTAT forecast

Calculation of exhaust system unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, years old Coefficient min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Principal muffler Under 3 0 .13 2 .6 0 .00 0 .00 3 – 10 0 .12 10 7 . 3 .1 143 .2 0 .37 52 .54 120 180 150 10 – 20 0 .10 5 6 . 5 .6 133 .0 0 .56 74 .83 Over 20 0 .07 1 9 . 1 .9 116 .9 0 .13 14 .99 Total - - - - 20.8 10.6 - 1.06 142.36 Resonator Under 3 0 .14 2 .6 0 .00 0 .00 3 – 10 0 .13 10 .7 3 9 . 91 2 . 0 .50 45 .78 110 170 140 10 – 20 0 .11 5 .6 5 6 . 85 8 . 0 .60 51 .68 Over 20 0 .07 1 .9 1 9 . 72 7 . 0 .14 9 .98 Total - - - - 20.8 11.5 - 1.24 107.44 Down pipe Under 3 0 .12 2 .6 0 .00 0 .00 3 – 10 0 .11 10 7 . 1 .4 120 .6 0 .14 17 .35 140 200 170 10 – 20 0 .09 5 6 . 5 .6 104 .3 0 .50 51 .75 Over 20 0 .06 1 9 . 1 .9 87 .1 0 .11 9 .85 Total - - - - 20.8 8.9 - 0.75 78.96 Catalytic converter Under 3 0 .14 2 .6 0 .00 0 .00 3 – 10 0 .13 10 .7 1 .9 415 .1 0 .24 101 .52 10 – 20 0 .11 90 170 130 5 .6 0 .00 0 .00 Over 20 0 .07 1 .9 0 .00 0 .00 Total - - - - 20.8 1.9 - 0.24 101.52

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 39 Passenger car component and spare part market in Russia MARKETING REPORT

Exhaust system units and parts

Calculation of exhaust system unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Total Under 3 ------0.00 0.00 3 – 10 ------1.26 217.20 10 – 20 ------1.66 178.26 Over 20 ------0.38 34.82 Total ------3.30 430.28 Russian brands Principal muffler Under 3 0 .19 0 .7 0 .00 0 .00 3 – 10 0 .17 3 2 . 2 .1 35 .0 0 .36 12 .43 70 140 105 10 – 20 0 .14 5 3 . 5 .3 32 .5 0 .76 24 .82 Over 20 0 .10 3 3 . 3 .3 26 .0 0 .31 8 .10 Total - - - - 12.5 10.7 - 1.43 45.36 Resonator Under 3 0 .18 0 .7 0 00 . 0 .00 3 – 10 0 .16 3 .2 1 9 . 25 5 . 0 .32 8 .12 70 150 110 10 – 20 0 .14 5 .3 5 3 . 23 2 . 0 .73 16 .91 Over 20 0 .09 3 .3 3 3 . 20 3 . 0 .30 6 .05 Total - - - - 12.5 10.6 - 1.34 31.09 Down pipe Under 3 0 .11 0 .7 0 .00 0 .00 3 – 10 0 .10 3 2 . 0 .3 25 .1 0 .03 0 .73 150 200 175 10 – 20 0 .09 5 3 . 5 .3 21 .5 0 .46 9 .86 Over 20 0 .06 3 3 . 3 .3 18 .1 0 .19 3 .39 Total - - - - 12.5 8.9 - 0.67 13.97 Catalytic converter Under 3 0 .20 0 .7 0 .00 0 .00 3 – 10 0 .18 3 .2 0 .9 149 .7 0 16 . 23 .73 50 150 100 10 – 20 0 .15 5 .3 0 .00 0 .00 Over 20 0 .10 3 .3 0 .00 0 .00 Total - - - - 12.5 0.9 - 0.16 23.73 Total Under 3 ------0.00 0.00 3 – 10 ------0.86 45.01 10 – 20 ------1.95 51.59 Over 20 ------0.80 17.55 Total ------3.61 114.15 Total Under 3 - - - - 3.3 - - 0.00 0.00 3 – 10 - - - - 13.9 - - 2.12 262.21 10 – 20 - - - - 11.0 - - 3.61 229.86 Over 20 - - - - 5.2 - - 1.18 52.36 Total - - - - 33.4 - - 6.91 544.43

Other marketing reports can be ordered at AUTOSTAT analytic agency. 40 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Ignition system units and parts

Last year the Russian aftermarket of ignition system parts was almost 29 million Market structure in 2017 units, which is about $486 million in terms of money. We should mention that if the number of units and parts for foreign cars are 1.5 times more than the market of Rus- sian ones, in terms of money they have fourfold advantage over the components for Spark plugs (complete set) 82% domestic vehicles. High-voltage wires (complete set) 5% Spark plugs are the most popular elements of ignition system; their share is 82% 28.79 of the group’s market in terms of numbers, which is 23.66 million units. In terms of mln. un. Ignition coil 8% money, their share is 67% or $327.65 million. This statistics is a result of their low fre- Timer-distributor 2% quency of replacement, as the operation life of spark plugs is a little more than 20 km. Ignition lock 3% The average price of a complete set of spark plugs for foreign vehicles is 4.5 times more than one of their Russian analogues: $18.6 vs. $4.1. The second place both in terms of numbers and money belongs to ignition coils. Last year 2.21 million units for more than $100 million were sold in Russia. That is de- spite the fact that operation life of this component exceeds 100,000 km, especially Spark plugs (complete set) 67% in foreign vehicles. High-voltage wires (complete set) 7% Besides above-listed ignition system parts, ignition locks might need occasional 485.75 replacement. High-voltage wires can also cause problems. However it is rare for mln. USD Ignition coil 21% foreign cars and a misuse failure usually. Timer-distributor 3% Timer-distributors are in the least demand in the market, their share Ignition lock 2% decreased to 2%.

Ignition system unit and part market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Spark plugs (complete set) 23 .34 356 .42 24 .19 355 .28 24 .24 291 .81 23 .83 272 .78 23 .66 327 .65 24 .06 311 27. High-voltage wires (complete set) 1 .43 41 .23 1 .40 35 .46 1 .42 26 .01 1 .44 25 .47 1 .48 32 .61 1 .56 33 .52 Ignition coil 1 .89 91 .39 1 .93 88 .53 2 .01 77 67 . 2 .09 78 93 . 2 .21 100 .48 2 .32 101 .72 Timer-distributor 1 .04 29 .32 0 .90 22 .16 0 .79 13 87 . 0 .73 11 97 . 0 .66 12 .49 0 .63 11 .29 Ignition lock 0 .81 14 .56 0 .78 13 .27 0 .78 10 24 . 0 .78 9 64 . 0 .78 12 .52 0 .80 11 .73 Total 28.51 532.92 29.20 514.70 29.23 419.61 28.87 398.79 28.79 485.75 29.37 469.52 * AUTOSTAT forecast

Calculation of ignition system unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Spark plugs (complete set) Under 3 0 .89 2 .6 2 .6 21 .7 2 .29 49 .53 3 – 10 0 .80 10 7 . 10 .7 19 .3 8 .56 165 .44 15 30 22 5. 10 – 20 0 .67 5 6 . 5 .6 17 .8 3 .75 66 .87 Over 20 0 .44 1 9 . 1 .9 15 .4 0 .85 13 .14 Total - - - - 20.8 20.8 - 15.45 294.98 High-voltage wires Under 3 0 .08 2 .6 0 .0 57 .4 0 .00 0 .10 (complete set) 3 – 10 0 .08 10 7 . 0 .3 55 .5 0 .02 1 .34 180 300 240 10 – 20 0 .06 5 6 . 3 .6 49 .3 0 .22 11 .09 Over 20 0 .04 1 9 . 1 .9 43 .4 0 .08 3 .48 Total - - - - 20.8 5.9 - 0.33 16.00 Ignition coil Under 3 0 .14 2 .6 0 .00 0 .00 3 – 10 0 .13 10 .7 3 9 . 70 5 . 0 .50 35 .43 100 180 140 10 – 20 0 .11 5 .6 5 6 . 64 7 . 0 .60 39 .01 Over 20 0 .07 1 .9 1 9 . 57 9 . 0 .14 7 .95 Total - - - - 20.8 11.5 - 1.24 82.40

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 41 Passenger car component and spare part market in Russia MARKETING REPORT

Ignition system units and parts

Calculation of ignition system unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Total Under 3 ------2.29 49.62 3 – 10 ------9.09 202.20 10 – 20 ------4.58 116.97 Over 20 ------1.07 24.58 Total ------17.02 393.37 Russian brands Spark plugs (complete set) Under 3 0 .89 0 .7 0 .7 4 .7 0 62 . 2 .87 3 – 10 0 .80 3 .2 3 2 . 4 2 . 2 .58 10 .84 15 30 22 .5 10 – 20 0 .67 5 .3 5 3 . 3 9 . 3 .56 13 .97 Over 20 0 .44 3 .3 3 3 . 3 4 . 1 .46 4 .99 Total - - - - 12.5 12.5 - 8.21 32.67 High-voltage wires Under 3 0 .17 0 .7 0 00 . 0 .00 (complete set) 3 – 10 0 .15 3 .2 1 4 . 15 6 . 0 .21 3 .25 80 160 120 10 – 20 0 .13 5 .3 5 3 . 14 5 . 0 .67 9 .69 Over 20 0 .08 3 .3 3 3 . 13 5 . 0 .27 3 .68 Total - - - - 12.5 10.0 - 1.15 16.61 Ignition module Under 3 0 .14 0 .7 0 00 . 0 .00 3 – 10 0 .13 3 .2 1 2 . 27 8 . 0 .15 4 .20 100 180 140 10 – 20 0 .11 5 .3 2 9 . 26 3 . 0 .31 8 .07 Over 20 0 .07 3 .3 0 1 . 24 9 . 0 .01 0 .16 Total - - - - 12.5 4.1 - 0.46 12.43 Ignition coil Under 3 0 .15 0 .7 0 00 . 0 .00 3 – 10 0 .14 3 .2 0 0 . 12 9 . 0 .00 0 .00 80 180 130 10 – 20 0 .12 5 .3 2 3 . 11 9 . 0 .26 3 .11 Over 20 0 .08 3 .3 3 2 . 10 4 . 0 .25 2 .54 Total - - - - 12.5 5.4 - 0.51 5.65 Timer-distributor Under 3 0 .20 0 .7 0 00 . 0 .00 3 – 10 0 .18 3 .2 0 0 . 22 2 . 0 .00 0 .00 60 140 100 10 – 20 0 .15 5 .3 2 3 . 20 0 . 0 .34 6 .78 Over 20 0 .10 3 .3 3 2 . 17 9 . 0 .32 5 .71 Total - - - - 12.5 5.4 - 0.66 12.49 Ignition lock Under 3 0 .13 0 .7 0 00 . 0 .00 3 – 10 0 .11 3 .2 0 7 . 19 2 . 0 .07 1 .43 70 250 160 10 – 20 0 .09 5 .3 5 3 . 16 7 . 0 .50 8 .34 Over 20 0 .06 3 .3 3 3 . 13 4 . 0 .20 2 .75 Total - - - - 12.5 9.3 - 0.78 12.52 Total Under 3 ------0.62 2.87 3 – 10 ------3.02 19.73 10 – 20 ------5.63 49.95 Over 20 ------2.51 19.82 Total ------11.77 92.38 Total Under 3 - - - - 3.3 - - 2.90 52.50 3 – 10 - - - - 13.9 - - 12.10 221.94 10 – 20 - - - - 11.0 - - 10.21 166.92 Over 20 - - - - 5.2 - - 3.58 44.40 Total - - - - 33.4 - - 28.79 485.75

Other marketing reports can be ordered at AUTOSTAT analytic agency. 42 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Cooling system units and parts

Uneven movement and idle runs in traffic jams make car engines often operate in hard Market structure in 2017 temperature modes In spite of such loads, cooling system parts and units require relatively little care besides regular coolant change. Meanwhile, in 2017 the total volume of cooling system component aftermarket in Rus- sia was about $197 million or 6.8 million units. The share of spare parts for foreign vehicles Radiator 17% was almost 1.5 times less than that for domestic cars. That is usually a result of carelessness 6.80 Water pump 38% of owners of domestic cars, who mix different mutually aggressive coolants, disregard mln. un. antifreeze replacement age, etc. Thermostat 45% Taking into account the average values, water pumps for foreign cars usually have the shortest operation life and break down after about 140,000 km. Its average cost is $49.2. This component for domestic cars has less operation life - on average 110,000 km, but costs only about $14.5. The annual water pump market volume in Russia is almost $83 mil- lion in terms of money. Thermostat is the most vulnerable element of domestic car cooling system. Its average Radiator 40% operation life is 80,000 km, and its average price is $7.9. Thermostat for foreign vehicles 197.44 has much longer operation life – 150,000 km, but the average cost of this item is $18.4. mln. USD Water pump 42% Last year the annual market demand for thermostat was 3 million units, which ex- ceeded $36.35 million in terms of money. Thermostat 18% One of the most expensive cooling system components is cooling radiator. This compo- nent is quite reliable for both foreign (the average price is $116) and Russian cars ($39.2). The radiator market is $78.19 million or 1.14 million units.

Cooling system unit and part market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Radiator 1 .01 95 .56 1 .01 88 .88 1 .04 67 56 . 1 .07 66 17 . 1 .14 78 .19 1 .24 80 .33 Water pump 2 .26 77 .64 2 .29 73 .49 2 .39 68 24 . 2 .48 68 52 . 2 .59 82 .90 2 .71 81 .53 Thermostat 2 .89 36 .24 2 .88 34 .62 2 .95 31 08 . 3 .01 30 41 . 3 .08 36 .35 3 .19 35 .37 Total 6.16 209.44 6.18 196.99 6.37 166.88 6.56 165.10 6.80 197.44 7.14 197.23 * AUTOSTAT forecast

Calculation of cooling system unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Radiator Under 3 0 .09 2 .6 0 .1 139 .1 0 .02 3 .14 3 – 10 0 .08 10 7 . 0 .2 123 .4 0 .08 9 .93 150 300 225 10 – 20 0 .07 5 6 . 4 .2 107 .4 0 .31 33 .43 Over 20 0 .04 1 9 . 1 .9 94 .2 0 .10 9 .14 Total - - - - 20.8 6.4 - 0.51 55.63 Water pump Under 3 0 .14 2 .6 0 .00 0 .00 3 – 10 0 .13 10 .7 3 9 . 55 9 . 0 .50 28 .07 100 180 140 10 – 20 0 .11 5 .6 5 6 . 49 0 . 0 .60 29 .56 Over 20 0 .07 1 .9 1 9 . 42 6 . 0 .14 5 .86 Total - - - - 20.8 11.5 - 1.24 63.48 Thermostat Under 3 0 .13 2 .6 0 .00 0 .00 3 – 10 0 .12 10 .7 3 1 . 22 4 . 0 .37 8 .21 120 180 150 10 – 20 0 .10 5 .6 5 6 . 17 9 . 0 .56 10 .06 Over 20 0 .07 1 .9 1 9 . 15 0 . 0 .13 1 .92 Total - - - - 20.8 10.6 - 1.06 20.20 Total Under 3 ------0.02 3.14 3 – 10 ------0.95 46.21 10 – 20 ------1.48 73.05 Over 20 ------0.36 16.92 Total ------2.81 139.31

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 43 Passenger car component and spare part market in Russia MARKETING REPORT

Cooling system units and parts

Calculation of cooling system unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Russian brands Radiator Under 3 0 .10 0 .7 0 .0 47 .8 0 .01 0 .30 3 – 10 0 .09 3 2 . 0 .6 40 .1 0 .07 2 .87 180 220 200 10 – 20 0 .08 5 3 . 4 .8 36 .7 0 .40 14 .51 Over 20 0 .05 3 3 . 2 .6 32 .4 0 .15 4 .88 Total - - - - 12.5 8.1 - 0.62 22.56 Water pump Under 3 0 .18 0 .7 0 .00 0 .00 3 – 10 0 .16 3 2 . 1 .9 16 .7 0 .32 5 .33 70 150 110 10 – 20 0 .14 5 3 . 5 .3 14 .2 0 .73 10 .36 Over 20 0 .09 3 3 . 3 .3 12 .5 0 .30 3 .73 Total - - - - 12.5 10.6 - 1.34 19.41 Thermostat Under 3 0 .25 0 .7 0 .00 0 .00 3 – 10 0 .23 3 2 . 2 .7 8 .8 0 .61 5 .40 60 100 80 10 – 20 0 .19 5 3 . 5 .3 8 .0 1 .00 7 .96 Over 20 0 .13 3 3 . 3 .3 6 .8 0 .41 2 .79 Total - - - - 12.5 11.3 - 2.02 16.16 Total Under 3 ------0.01 0.30 3 – 10 ------1.00 13.60 10 – 20 ------2.12 32.84 Over 20 ------0.86 11.40 Total ------3.99 58.13 Total Under 3 - - - - 3.3 - - 0.03 3.43 3 – 10 - - - - 13.9 - - 1.95 59.81 10 – 20 - - - - 11.0 - - 3.60 105.88 Over 20 - - - - 5.2 - - 1.22 28.32 Total - - - - 33.4 - - 6.80 197.44

Other marketing reports can be ordered at AUTOSTAT analytic agency. 44 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Electronic engine control units and parts

Electronic engine control includes many components, most of which are beyond repair Market structure in 2017 and very expensive. The operation life of most electronic engine control components is equal to one of the vehicle. The cars of 20 years old have electronic engine control components (controller, detonation sensors, crankshaft position sensor, etc.) which go. Controller 2% The replacement might be necessary in case of mechanical impact or electrical network Mass-airflow sensor 12% failure, which overstresses the embedded network. 6.52 Velocity sensor 8% Oxygen sensor, which controls air-fuel ratio, is in the most popular demand in the sensor mln. un. Oxygen sensor 37% market. It fails due to the poor fuel quality. If the car warranty has already expired the failed oxygen sensor is often not replaced but just removed. Throttle position sensor 33% Despite this fact the market share of oxygen sensor is the highest both in terms of Idle adjuster 8% numbers (37% or 2.38 million units) and in terms of money (43% or $138.54 million). The second place belongs to throttle position sensor with a third of the market capacity in terms of numbers (2.17 million units) and almost one fifth in terms of money ($69.39 million). This item has this result as throttle position sensors for domestic cars are not very reliable (their Controller 7% average operation life is 90,000 km) and often replaced. Mass-airflow sensor 20% The third place belongs to mass-airflow sensor (0.8 million units and $66.14 million respectively), which is due to its high price. Mass-airflow sensor costs on average $43 for do- 325.76 Velocity sensor 2% mestic cars and about $136 for foreign vehicles. mln. USD Oxygen sensor 43% In general, the total electronic engine control component market capacity is not very high Throttle position sensor 21% and came up to 6.52 million units for almost $325.76 million in 2017. Idle adjuster 7%

Electronic engine control unit and part market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Controller 0 .06 16 .13 0 .07 17 .07 0 .09 15 28 . 0 .11 16 60 . 0 .12 22 .41 0 .12 23 .00 Mass-airflow sensor 0 .52 54 .98 0 .58 54 .35 0 .65 47 65 . 0 .72 50 50 . 0 .80 66 .14 0 .89 69 .81 Velocity sensor 0 .34 6 .72 0 .39 6 .48 0 44 . 6 .11 0 49 . 6 .44 0 .53 7 .89 0 59 . 8 .22 Oxygen sensor 1 .65 136 .79 1 .85 136 .54 2 .05 122 .51 2 .22 124 .09 2 .38 138 .54 2 .49 132 .78 Throttle position sensor 1 .56 67 .88 1 .74 65 .10 1 .89 58 47 . 2 .03 60 75 . 2 .17 69 .39 2 .26 67 .60 Idle adjuster 0 .31 19 .93 0 .36 19 .16 0 .41 16 48 . 0 .46 17 59 . 0 .52 21 .39 0 .56 22 .81 Total 4.43 302.43 5.00 298.70 5.53 266.50 6.03 275.98 6.52 325.76 6.93 324.23 * AUTOSTAT forecast

Calculation of electronic engine control unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Controller Under 3 0 .06 2 .6 0 .00 0 .00 3 – 10 0 .06 10 7 . 0 .00 0 .00 150 500 325 10 – 20 0 .05 5 6 . 0 .4 608 .0 0 .02 10 .41 Over 20 0 .03 1 9 . 0 .00 0 .00 Total - - - - 20.8 0.4 - 0.02 10.41 Mass-airflow sensor Under 3 0 .10 2 .6 0 .00 0 .00 3 – 10 0 .09 10 .7 0 .00 0 .00 100 300 200 10 – 20 0 .08 5 .6 4 6 . 136 0 . 0 .34 46 .81 Over 20 0 .05 1 .9 0 .00 0 .00 Total - - - - 20.8 4.6 - 0.34 46.81 Velocity sensor Under 3 0 .08 2 .6 0 .00 0 .00 3 – 10 0 .07 10 .7 0 .00 0 .00 100 400 250 10 – 20 0 .06 5 .6 2 9 . 31 0 . 0 .17 5 .46 Over 20 0 .04 1 .9 0 .00 0 .00 Total - - - - 20.8 2.9 - 0.17 5.46 Oxygen sensor Under 3 0 .17 2 .6 0 .00 0 .00 3 – 10 0 .16 10 .7 6 0 . 72 0 . 0 .94 68 .28 30 200 115 10 – 20 0 .13 5 .6 5 1 . 67 0 . 0 .66 43 .94 Over 20 0 .09 1 .9 0 .00 0 .00 Total - - - - 20.8 11.1 - 1.60 112.23

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 45 Passenger car component and spare part market in Russia MARKETING REPORT

Electronic engine control units and parts

Calculation of electronic engine control unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Throttle position sensor Under 3 0 .14 2 .6 0 00 . 0 .00 3 – 10 0 .13 10 .7 3 9 . 63 0 . 0 .50 31 .55 80 200 140 10 – 20 0 .11 5 .6 5 1 . 55 0 . 0 .54 29 .84 Over 20 0 .07 1 .9 0 .00 0 .00 Total - - - - 20.8 9.0 - 1.04 61.39 Idle adjuster Under 3 0 .08 2 .6 0 00 . 0 .00 3 – 10 0 .07 10 .7 0 .00 0 .00 100 400 250 10 – 20 0 .06 5 .6 2 9 . 102 0 . 0 .17 17 .78 Over 20 0 .04 1 .9 0 .00 0 .00 Total - - - - 20.8 2.9 - 0.17 17.78 Total Under 3 ------0.00 0.00 3 – 10 ------1.45 99.84 10 – 20 ------1.91 154.26 Over 20 ------0.00 0.00 Total ------3.36 254.09 Russian brands Controller Under 3 0 .07 0 .7 0 .00 0 .00 3 – 10 0 .06 3 2 . 0 .00 0 .00 80 500 290 10 – 20 0 .05 5 3 . 1 .9 119 .0 0 .10 12 .00 Over 20 0 .03 3 3 . 0 .00 0 .00 Total 12.5 1.9 - 0.10 12.00 Mass-airflow sensor Under 3 0 .14 0 .7 0 00 . 0 .00 3 – 10 0 .13 3 .2 1 2 . 47 0 . 0 .15 7 .14 80 200 140 10 – 20 0 .11 5 .3 2 9 . 40 0 . 0 .31 12 .19 Over 20 0 .07 3 .3 0 .00 0 .00 Total - - - - 12.5 4.0 - 0.46 19.33 Velocity sensor Under 3 0 .12 0 .7 0 00 . 0 .00 3 – 10 0 .11 3 .2 0 9 . 7 0 . 0 .10 0 .73 80 250 165 10 – 20 0 .09 5 .3 2 9 . 7 0 . 0 .26 1 .70 Over 20 0 .06 3 .3 0 .00 0 .00 Total - - - - 12.5 3.8 - 0.36 2.43 Oxygen sensor Under 3 0 .17 0 .7 0 00 . 0 .00 3 – 10 0 .16 3 .2 2 6 . 35 0 . 0 .40 14 .17 30 200 115 10 – 20 0 .13 5 .3 2 9 . 32 0 . 0 .37 12 .15 Over 20 0 .09 3 .3 0 .00 0 .00 Total - - - - 12.5 5.4 - 0.78 26.31 Throttle position sensor Under 3 0 .22 0 .7 0 00 . 0 .00 3 – 10 0 .20 3 .2 3 2 . 7 0 . 0 .65 4 .78 50 130 90 10 – 20 0 .17 5 .3 2 9 . 7 0 . 0 .48 3 .21 Over 20 0 .11 3 .3 0 .00 0 .00 Total - - - - 12.5 6.1 - 1.12 7.99 Idle adjuster Under 3 0 .13 0 .7 0 00 . 0 .00 3 – 10 0 .11 3 .2 0 7 . 12 0 . 0 .07 0 .93 70 250 160 10 – 20 0 .09 5 .3 2 9 . 10 0 . 0 .27 2 .67 Over 20 0 .06 3 .3 0 .00 0 .00 Total - - - - 12.5 3.5 - 0.34 3.60 Total Under 3 ------0.00 0.00 3 – 10 ------1.37 27.75 10 – 20 ------1.79 43.92 Over 20 ------0.00 0.00 Total ------3.16 71.66 Total Under 3 - - - - 3.3 - - 0.00 0.00 3 – 10 - - - - 13.9 - - 2.82 127.58 10 – 20 - - - - 11.0 - - 3.70 198.17 Over 20 - - - - 5.2 - - 0.00 0.00 Total - - - - 33.4 - - 6.52 325.76

Other marketing reports can be ordered at AUTOSTAT analytic agency. 46 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Electric equipment units and parts

The electric equipment market is rather volumetric, especially in terms of money, as Market structure in 2017 electric equipment is one of the major part of a modern passenger car. In 2017 the demand for such components and parts in Russia exceeded 60 million components, which is almost $781 million in terms of money. Starter 4% The structure of electric equipment market is quite various and unequal, as some units are quite expensive. If generators and starters have about 80% of the total auto- 60.82 Generator 3% motive electric equipment market in terms of money, which is $613.77 million, in terms of mln. un. Different relays 23% numbers, their share is only 7% (4.23 million units). However these expensive aggregates Electric bulbs 70% are quite reliable and require replacement seldom (much more than after 100,000 km), especially in foreign cars. On the other hand, the sales of light bulbs for headlights and lamps are quite high. Their share is 70% in terms of numbers (42.74 million units) and only 15% of the electric equipment market in terms of money ($118.63 million). Electric bulbs have the most unpre- dictable operation life of all components of electrical network. Some of them might need replacement during the first few weeks of operation and some of them could work for Starter 37% several years. 780.98 Generator 42% The remaining part of electric equipment market belongs to different relays. Their sales mln. USD Different relays 6% come up to almost 13.85 million units (23% of the total market) but that is only $48.59 million (6%) in terms of money. Electric bulbs 15%

Electric equipment unit and part market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Starter 1 .89 314 .00 1 .91 288 .21 2 .00 256 .05 2 .08 259 .05 2 .19 291 .19 2 .32 309 .67 Generator 1 .75 326 .81 1 .78 302 .54 1 .87 273 .59 1 .95 277 .99 2 .04 322 .57 2 .15 338 .64 Different relays 11 .72 55 .83 11 .95 51 .60 12 .57 39 .19 13 .13 39 .59 13 .85 48 .59 14 .65 48 .87 Electric bulbs 35 .73 94 .71 37 .17 105 .63 39 .65 94 .29 41 .34 95 .54 42 .74 118 .63 43 .33 119 .24 Total 51.09 791.35 52.82 747.99 56.08 663.12 58.50 672.18 60.82 780.98 62.45 816.42 * AUTOSTAT forecast

Calculation of electric equipment unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Starter Under 3 0 .13 2 .6 0 .00 0 .00 3 – 10 0 .12 10 7 . 3 .1 228 .1 0 .37 83 .66 100 200 150 10 – 20 0 .10 5 6 . 5 .6 207 .5 0 .56 116 .70 Over 20 0 .07 1 9 . 1 .9 177 .2 0 .13 22 .71 Total - - - - 20.8 10.6 - 1.06 223.07 Generator Under 3 0 .14 2 .6 0 .00 0 .00 3 – 10 0 .12 10 7 . 3 .5 260 .2 0 .43 112 .43 90 200 145 10 – 20 0 .10 5 6 . 4 .8 228 .4 0 .49 112 .96 Over 20 0 .07 1 9 . 1 .5 188 .1 0 .11 19 .95 Total - - - - 20.8 9.8 - 1.03 245.35 Different relays Under 3 0 .14 2 .6 0 .00 0 .00 3 – 10 0 .13 10 .7 23 4 . 5 1 . 3 .01 15 .38 80 200 140 10 – 20 0 .11 5 .6 33 7 . 4 6 . 3 .62 16 .60 Over 20 0 .07 1 .9 11 5 . 4 2 . 0 .82 3 .47 Total - - - - 20.8 68.7 - 7.45 35.45 Electric bulbs Under 3 0 .25 2 .6 0 .00 0 .00 3 – 10 0 .23 10 7 . 72 .0 3 .9 16 .20 62 .77 20 140 80 10 – 20 0 .19 5 6 . 45 .0 3 .6 8 .44 30 .63 Over 20 0 .13 1 9 . 15 .4 3 .4 1 .92 6 .52 Total - - - - 20.8 132.4 - 26.56 99.92

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Electric equipment units and parts

Calculation of electric equipment unit and part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Total Under 3 ------0.00 0.00 3 – 10 ------20.01 274.24 10 – 20 ------13.11 276.89 Over 20 ------2.98 52.65 Total ------36.10 603.79 Russian brands Starter Under 3 0 .16 0 .7 0 .00 0 .00 3 – 10 0 .14 3 2 . 1 .6 68 .9 0 .22 15 .50 80 170 125 10 – 20 0 .12 5 3 . 5 .3 60 .0 0 .64 38 .44 Over 20 0 .08 3 3 . 3 .3 54 .1 0 .26 14 .18 Total - - - - 12.5 10.2 - 1.13 68.13 Generator Under 3 0 .15 0 .7 0 00 . 0 .00 3 – 10 0 .13 3 .2 1 3 . 83 1 . 0 .17 14 .47 90 180 135 10 – 20 0 .11 5 .3 5 3 . 78 9 . 0 .59 46 .83 Over 20 0 .07 3 .3 3 3 . 65 6 . 0 .24 15 .92 Total - - - - 12.5 9.9 - 1.01 77.22 Different relays Under 3 0 .15 0 .7 0 00 . 0 .00 3 – 10 0 .14 3 .2 8 6 . 2 1 . 1 .19 2 .54 60 200 130 10 – 20 0 .12 5 .3 32 0 . 2 1 . 3 .70 7 .78 Over 20 0 .08 3 .3 19 7 . 1 9 . 1 .51 2 .82 Total - - - - 12.5 60.3 - 6.40 13.14 Electric bulbs Under 3 0 .25 0 .7 0 00 . 0 .00 3 – 10 0 .23 3 .2 21 7 . 1 2 . 4 .89 6 .01 20 140 80 10 – 20 0 .19 5 .3 42 7 . 1 2 . 8 .01 9 .27 Over 20 0 .13 3 .3 26 2 . 1 0 . 3 .28 3 .43 Total - - - - 12.5 90.7 - 16.17 18.71 Total Under 3 ------0.00 0.00 3 – 10 ------6.48 38.51 10 – 20 ------12.94 102.33 Over 20 ------5.30 36.36 Total ------24.71 177.19 Total Under 3 - - - - 3.3 - - 0.00 0.00 3 – 10 - - - - 13.9 - - 26.49 312.76 10 – 20 - - - - 11.0 - - 26.05 379.21 Over 20 - - - - 5.2 - - 8.28 89.01 Total - - - - 33.4 - - 60.82 780.98

Other marketing reports can be ordered at AUTOSTAT analytic agency. 48 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Engine overhaul parts

Operation life was one of the most important engine characteristics not long time Market structure in 2017 ago. E.g. VAZ engineers planned this parameter during car designing. Originally VAZ en- gine operation life was 125,000 km, later it was increased up to 150,000 km. However the Pistons rings (complete set) 19% operation practice showed that operation life of many engines is over 400,000 km and we do not find it judicious to talk about any fixed number. Pistons (complete set) 13% However, according to the statistics of engine repair service stations, domestic car Crankshaft bushing engines need serious repairs from 100,000 to 250,000 km of mileage and foreign car 5.95 (complete set) 12% engines can operate for at least 300,000 km. mln. un. Camshaft 15% That is a reason why Russian car engine market capacity is about 3.7 times more than the one of foreign cars. (4.68 million units vs. 1.27 million units). In terms of money the Cylinder block head gasket 21% difference is not that great ($73.03 million vs. $68.83 million), which is caused by the Valves (complete set) 21% higher prices of components for foreign vehicles. Rare problems with engine in earlier age are caused by the owner’s carelessness (delayed servicing, low-quality oil and consumable materials, etc.) Early repairs might also be necessary in case of timing belt breakage with valve Pistons rings (complete set) 17% damage. Piston rings (operation life: 250,000 km for foreign vehicles, 150,000 km for Pistons (complete set) 18% Russian cars) are replaced quite often before engine overhaul. Crankshaft bushing 170.27 Last year engine part market capacity came up to almost 6 million units of different (complete set) 6% items and exceeded $170 million in terms of money. mln. USD Camshaft 21% Cylinder block head gasket 5% Valves (complete set) 33%

Engine overhaul part market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Pistons rings (complete set) 1 .07 38 .32 1 .05 33 .48 1 .07 24 .53 1 .09 23 .89 1 .13 28 .49 1 .21 29 .71 Pistons (complete set) 0 .71 28 .61 0 .69 25 .98 0 .70 26 68 . 0 .72 26 24 . 0 .74 31 .34 0 .79 33 .30 Crankshaft bushing (complete set) 0 .71 9 .18 0 .69 8 .04 0 .70 8 .34 0 .72 8 .40 0 .74 9 .87 0 79 . 10 27. Camshaft 0 .82 33 .66 0 .80 32 .00 0 .81 29 .79 0 .83 29 .78 0 .87 36 .25 0 93 . 38 .74 Cylinder block head gasket 1 .18 9 .70 1 .15 8 .80 1 .17 6 .77 1 .19 6 .75 1 .23 8 .23 1 30 . 8 .88 Valves (complete set) 1 .18 59 .11 1 .15 52 .71 1 .17 48 .11 1 .19 46 .80 1 .23 56 .10 1 30 . 58 .35 Total 5.67 178.57 5.54 161.02 5.62 144.23 5.75 141.86 5.95 170.27 6.33 179.25 * AUTOSTAT forecast

Calculation of engine overhaul part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Pistons rings (complete set) Under 3 0 .08 2 .6 0 .00 0 .00 3 – 10 0 .07 10 7 . 0 .00 0 .00 150 350 250 10 – 20 0 .06 5 6 . 3 .2 49 .0 0 .19 9 .50 Over 20 0 .04 1 9 . 1 .9 44 .0 0 .08 3 .35 Total - - - - 20.8 5.1 - 0.27 12.85 Pistons (complete set) Under 3 0 .07 2 .6 0 .00 0 .00 3 – 10 0 .06 10 .7 0 .00 0 .00 200 400 300 10 – 20 0 .05 5 .6 1 3 . 148 0 . 0 .07 9 .98 Over 20 0 .03 1 .9 1 9 . 132 0 . 0 .06 8 .48 Total - - - - 20.8 3.3 - 0.13 18.46 Crankshaft bushing Under 3 0 .07 2 .6 0 .00 0 .00 (complete set) 3 – 10 0 .06 10 .7 0 .00 0 .00 200 400 300 10 – 20 0 .05 5 .6 1 3 . 36 0 . 0 .07 2 .40 Over 20 0 .03 1 .9 1 9 . 30 0 . 0 .06 1 .92 Total - - - - 20.8 3.3 - 0.13 4.31 Camshaft Under 3 0 .07 2 .6 0 .00 0 .00 3 – 10 0 .07 10 7 . 0 .00 0 .00 150 400 275 10 – 20 0 .05 5 6 . 2 .3 112 .0 0 .12 13 .96 Over 20 0 .04 1 9 . 1 .9 97 .0 0 .07 6 .78 Total - - - - 20.8 4.2 - 0.19 20.74

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 49 Passenger car component and spare part market in Russia MARKETING REPORT

Engine overhaul parts

Calculation of engine overhaul part market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Cylinder block head gasket Under 3 0 .08 2 .6 0 .00 0 .00 3 – 10 0 .07 10 7 . 0 .00 0 .00 100 400 250 10 – 20 0 .06 5 6 . 3 .2 20 .0 0 .19 3 .93 Over 20 0 .04 1 9 . 1 .9 17 .0 0 .08 1 .32 Total - - - - 20.8 5.1 - 0.27 5.24 Valves (complete set) Under 3 0 .08 2 .6 0 00 . 0 .00 3 – 10 0 .07 10 .7 0 .00 0 .00 100 400 250 10 – 20 0 .06 5 .6 3 2 . 94 0 . 0 .19 18 .25 Over 20 0 .04 1 .9 1 9 . 82 0 . 0 .08 6 .31 Total - - - - 20.8 5.1 - 0.27 24.55 Total Under 3 ------0.00 0.00 3 – 10 ------0.00 0.00 10 – 20 ------0.84 58.01 Over 20 ------0.43 28.16 Total ------1.27 86.17 Russian brands Pistons rings (complete set) Under 3 0 .13 0 .7 0 .00 0 .00 3 – 10 0 .12 3 2 . 0 .9 21 .0 0 .11 2 .30 100 200 150 10 – 20 0 .10 5 3 . 5 .3 18 .0 0 .53 9 .68 Over 20 0 .07 3 3 . 3 .3 17 .0 0 .22 3 .66 Total - - - - 12.5 9.5 - 0.86 15.64 Pistons (complete set) Under 3 0 .11 0 .7 0 00 . 0 .00 3 – 10 0 .10 3 .2 0 0 . 23 0 . 0 .00 0 .06 120 250 185 10 – 20 0 .08 5 .3 5 3 . 21 0 . 0 .43 9 .15 Over 20 0 .05 3 .3 3 3 . 21 0 . 0 .18 3 .66 Total - - - - 12.5 8.6 - 0.61 12.87 Crankshaft bushing Under 3 0 .11 0 .7 0 00 . 0 .00 (complete set) 3 – 10 0 .10 3 .2 0 0 . 10 0 . 0 .00 0 .02 120 250 185 10 – 20 0 .08 5 .3 5 3 . 9 0 . 0 .43 4 .03 Over 20 0 .05 3 .3 3 3 . 8 0 . 0 .18 1 .50 Total - - - - 12.5 8.6 - 0.61 5.56 Camshaft Under 3 0 .11 0 .7 0 00 . 0 .00 3 – 10 0 .10 3 .2 0 3 . 25 0 . 0 .03 0 .74 100 250 175 10 – 20 0 .09 5 .3 5 3 . 24 0 . 0 .46 10 .80 Over 20 0 .06 3 .3 3 3 . 21 0 . 0 .19 3 .98 Total - - - - 12.5 8.9 - 0.67 15.51 Cylinder block head gasket Under 3 0 .14 0 .7 0 00 . 0 .00 3 – 10 0 .13 3 .2 1 2 . 3 0 . 0 .15 0 .50 80 200 140 10 – 20 0 .11 5 .3 5 3 . 3 0 . 0 .57 1 .78 Over 20 0 .07 3 .3 3 3 . 3 0 . 0 .23 0 .70 Total - - - - 12.5 9.8 - 0.96 2.98 Valves (complete set) Under 3 0 .14 0 .7 0 .00 0 .00 3 – 10 0 .13 3 2 . 1 .2 35 .0 0 .15 5 .33 80 200 140 10 – 20 0 .11 5 3 . 5 .3 33 .0 0 .57 19 .06 Over 20 0 .07 3 3 . 3 .3 30 .0 0 .23 7 .14 Total - - - - 12.5 9.8 - 0.96 31.54 Total Under 3 ------0.00 0.00 3 – 10 ------0.45 8.95 10 – 20 ------3.00 54.51 Over 20 ------1.23 20.65 Total ------4.68 84.11 Total Under 3 - - - - 3.3 - - 0.00 0.00 3 – 10 - - - - 13.9 - - 0.45 8.95 10 – 20 - - - - 11.0 - - 3.84 112.52 Over 20 - - - - 5.2 - - 1.66 48.80 Total - - - - 33.4 - - 5.95 170.27

Other marketing reports can be ordered at AUTOSTAT analytic agency. 50 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Driving belts

Belt drive is widely used in modern passenger cars. Originally it was used for genera- Market structure in 2017 tor drive, but today it drives different car system aggregates: hydraulic steering booster pump, air conditioner compressor, etc. Belt drive is getting more use in valve control. Most car owners replace timing belt ac- cording to carmakers’ recommendations, as the timing belt breaking might cause serious Timing belt 24% damage to engine parts. 17.21 Generator belt 39% Other belts are replaced after cracking occurs. Belt operation life depends on oper- mln. un. ating conditions and vehicle’s technical state. A/C driving belt 2% In 2017 the market demand for driving belts was 11.26 million units. In terms of money Timing belt carriers 35% it is $223.68 million. According to a design of vehicles with timing belt, regular replacement is required for timing belt carriers. As a rule support rollers and tension rollers are replaced together with the belt, but they might be replaced after some time. Last year the market capacity for these components was almost 6 million units or $188 million. Despite a third of the market in terms of numbers (35%) they have almost Timing belt 27% a half of the market (47%) in terms of money. That is due to the high price for these components for foreign cars (on average $37.2). 411.63 Generator belt 25% We should also mention that generator belt is the cheapest component of this group mln. USD A/C driving belt 2% ($21.5 for foreign vehicles, $3.1 for Russian cars). This factor along with its operation life makes this component the market leader in terms of numbers (6.7 million units or 39% of Timing belt carriers 46% the market), however in terms of money that is only about $102.29 million (25%).

Driving belt market capacity 2013 2014 2015 2016 2017 2018* Name mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD mln. un. mln. USD

Timing belt 3 .07 96 .64 3 .32 98 .08 3 .94 93 37 . 4 .04 90 78 . 4 .20 112 .58 4 .27 107 .36 Generator belt 5 .60 76 .80 5 .84 76 .05 6 .24 80 46 . 6 .50 81 95 . 6 .70 102 .29 6 .75 97 .39 A/C driving belt 0 .25 6 .73 0 .28 6 .83 0 31 . 6 .82 0 34 . 7 .01 0 .36 8 .80 0 37 . 8 .40 Timing belt carriers 4 .22 159 .05 4 .60 160 .40 5 .42 149 .48 5 .73 152 .01 5 .95 187 .94 5 .96 175 .68 Total 13.14 339.22 14.04 341.35 15.91 330.12 16.61 331.74 17.21 411.63 17.35 388.83 * AUTOSTAT forecast

Calculation of driving belt market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Timing belt Under 3 0 .27 2 .6 - - - - 3 – 10 0 .24 10 7 . 7 .1 35 .9 1 .70 60 .86 30 120 75 10 – 20 0 .20 5 6 . 4 .5 32 .5 0 .90 29 .26 Over 20 0 .13 1 9 . 1 .1 28 .2 0 .14 3 .98 Total - - - - 20.8 12.6 - 2.74 94.11 Generator belt Under 3 0 .30 2 .6 - - 3 – 10 0 .27 10 7 . 10 .1 22 .8 2 .68 61 .12 45 90 67 5. 10 – 20 0 .22 5 6 . 5 .6 22 .4 1 .25 27 .95 Over 20 0 .15 1 9 . 1 .9 19 .3 0 .28 5 .50 Total - - - - 20.8 17.6 - 4.22 94.57 A/C driving belt Under 3 0 .27 2 .6 - - 3 – 10 0 .24 10 7 . 0 .9 25 .2 0 .23 5 .70 60 90 75 10 – 20 0 .20 5 6 . 0 .6 23 .1 0 .11 2 .60 Over 20 0 .13 1 9 . 0 .2 19 .9 0 .03 0 .51 Total - - - - 20.8 1.7 - 0.36 8.80 Timing belt carriers Under 3 0 .27 2 .6 - - 3 – 10 0 .24 10 7 . 12 .3 41 .5 2 .95 122 .46 30 120 75 10 – 20 0 .20 5 6 . 5 .9 37 .4 1 .18 44 .22 Over 20 0 .13 1 9 . 1 .3 32 .7 0 .18 5 .86 Total - - - - 20.8 19.6 - 4.31 172.54

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 51 Passenger car component and spare part market in Russia MARKETING REPORT

Driving belts

Calculation of driving belt market capacity

Age group Operation life, th. km Parc Volume Price Market capacity Name of the vehicle, Coefficient years old min max calculation mln. un. mln. un. USD mln. un. mln. USD Foreign vehicles Total Under 3 ------3 – 10 ------7.56 250.14 10 – 20 ------3.44 104.03 Over 20 ------0.63 15.86 Total ------11.63 370.03 Russian brands Timing belt Under 3 0 .30 0 .7 - - - - 3 – 10 0 .27 3 2 . 2 .7 13 .7 0 .71 9 .74 45 90 67 .5 10 – 20 0 .22 5 3 . 3 .1 11 .7 0 .69 8 .09 Over 20 0 .15 3 3 . 0 .4 10 .1 0 .06 0 .64 Total - - - - 12.5 6.2 - 1.46 18.47 Generator belt Under 3 0 .30 0 .7 - - 3 – 10 0 .27 3 .2 3 0 . 3 3 . 0 .81 2 .67 45 90 67 .5 10 – 20 0 .22 5 .3 5 3 . 3 1 . 1 .19 3 .71 Over 20 0 .15 3 .3 3 3 . 2 8 . 0 .49 1 .34 Total - - - - 12.5 11.7 - 2.48 7.72 Timing belt carriers Under 3 0 .30 0 .7 - - 3 – 10 0 .27 3 .2 3 0 . 9 8 . 0 .79 7 .76 45 90 67 .5 10 – 20 0 .22 5 .3 3 5 . 9 1 . 0 .78 7 .11 Over 20 0 .15 3 .3 0 4 . 8 4 . 0 .06 0 .53 Total - - - - 12.5 6.9 - 1.63 15.40 Total Under 3 ------3 – 10 ------2.31 20.16 10 – 20 ------2.65 18.91 Over 20 ------0.61 2.52 Total ------5.58 41.59 Total Under 3 - - - - 3.3 - - - - 3 – 10 - - - - 13.9 - - 9.87 270.31 10 – 20 - - - - 11.0 - - 6.10 122.94 Over 20 - - - - 5.2 - - 1.24 18.37 Total - - - - 33.4 - - 17.21 411.63

Other marketing reports can be ordered at AUTOSTAT analytic agency. 52 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Profiles of spare part dealer companies

Spare parts for passenger cars are distributed in the Russian market The company profiles do not include the companies’ contacts, only by a large number of specialized companies. Today over one hundred www-addresses, where the full information is available. The web sites large companies specialize in spares distribution. There are thousands also include the full lists of distributed brands. Moreover these lists could of spare part dealers (shops, engineering centers, stations, etc.) in Rus- be changed from time to time. sia. Our review includes tens of companies, distributing a wide range of Almost all market players keep information of their sales volumes in spare parts for Russian and foreign vehicles. secret, and it is quite difficult to make an objective rating of spare part We did not try to represent this market segment as a whole, the dealer companies. companies represented are the largest market players of different Rus- sian regions.

ABS-AUTO, Stavropol www .abs-auto .ru ABS-AUTO company was founded in 1995. Since 1999 the com- As an authorized distributor of more than 70 global brands ABS- pany has been specializing in the wholesale of spare parts imported AUTO offers standard and customized solutions for service stations from . and retail stores. ABS-AUTO is the largest supplier of automotive spare parts for The company’s fleet of 90 vehicles provides direct product delivery passenger cars and commercial vehicles. Trade catalog includes over to 5,200 wholesale customers in 170 cities of Russia. The current staff 11 million items of automotive products, over 80,000 items are avail- of the company is 300 people. able in stock. ABS-AUTO has warehouses in Moscow, Stavropol, Py- In 2013 Mercedes Benz dealer center – ABS-AUTO Sochi, a part of atigorsk, Krasnodar and Rostov-on-Don, Sochi, Simferopol. The total ABS-AUTO Group – was opened in Sochi. storage area is 10,000 sq. m.

AD SMARTEC, Moscow www .smartec .ru AD SMARTEC was founded in 1996 as a distributor of spare parts for stock where they are redistributed and sent to the regional and local passenger cars. In 1999 the company extended its product range with warehouses. 6 regional wholesale stores of the company employ over spare parts for , trailers and building vehicles. The regular custom- 80 people. ers and partners are retail spare part shops, service stations and car ser- Today the total storage area of the company is over 9,000 sq. vice centers as well as companies and enterprises. meters. About 40,000 items of goods can be delivered to the part- In 2005 the company launched logistics center in the West of Mos- ners fast from the storages of other AD Russia companies and store- cow. The company is a part of ADI international trade group. houses of their suppliers. Over 40 vehicles provide prompt delivery Over 30,000 items of spare parts are constantly available in stock. from the stores in AD SMARTEC system. All products purchased by the company are stored in the distribution

AvtoALL, Moscow www .avtoall .ru AvtoALL spare part shops have been operating since 1992. The from the company’s price list, including more than 120,000 items company is a dealer and a part of commodity distribution network of spare parts for domestic passenger cars, trucks, buses, tractors, of all large automotive component and spare part manufacturers – special vehicles and foreign brands. There is always a range of tires YaMZ, ZMZ, ZIL, MAZ, KAMAZ, UAZ, MTZ, etc. and disks for passenger cars and trucks, batteries, electrics and The company sells products of more than 500 domestic devices. The company has 8 retail shops and 6,000 customers manufacturers and famous foreign companies. AvtoALL.ru e-shop, in all regions of Russia. 150 sales managers are employed in the which was launched in 2005, has the whole range of products company.

Emex.ru, Moscow region www .emex .ru Emex.ru is an e-shop, where the customer can order and get spare parts offers. 47 million items of vehicle and motorbike spare parts can be ordered from almost all over the world for any vehicles. The site is open for suppliers’ online. E-shop sells 50 thousand parts per day in 5 CIS countries.

EXIST.Ru, Moscow www .exist .ru E-shop EXIST.RU was established in 1999. Today it is one of the A range of the components includes more than 26 million genuine and leading companies in this market. EXIST.ru project is based on information non-genuine spare parts and accessories (including parts for tuning and technologies, own software, analytic and statistic market information, special vehicles) from 1,200 world leading manufacturers. The company collected for the years of activity. The company offers system of automotive collaborates with over 300 suppliers from Europe, United Arab Emirates, spare part on-line-search and order. It has an extensive on-line catalogue of Japan and Belorussia. It has own wholesale department and regional spare parts for European, Japanese and Korean vehicles. There are some representative offices. EXIST.ru has over 1,000 partner companies in variants for part searching: request by VIN of the car, spare part number, all Russian regions – from Kaliningrad to Vladivostok. The order can be illustrated catalogue. delivered to more than 200 cities.

Other marketing reports can be ordered at AUTOSTAT analytic agency. Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] 53 Passenger car component and spare part market in Russia MARKETING REPORT

Profiles of spare part dealer companies

IXORA, Nizhny Novgorod www .ixora-auto .ru IXORA company has been operating in the market of automotive The customer base of the company includes 7,000 wholesale components since 2004. Today it is the largest wholesale and retail hy- and 120,000 regular retail customers. The hypermarket catalogs con- permarket of automotive spare parts and accessories in Volga Federal tain 60 million items of spare parts, car accessories and automotive District. Professional online-system for the spare parts selection enables chemicals. 80,400 items are constantly available in the stock of the customers to order any necessary parts in a 24-hour mode. company. The central office as well as the central storage complex of The company operates 30 branded retail stores, 35 regional offices. the company is located in Nizhny Novgorod. 100 vehicles of the company’s fleet deliver orders to 160 cities of Russia. The staff of the company is 650 people.

SV-Auto, Moscow www .svautoz .ru E-shop SV-Auto has been operating in the spare part market since delivers orders to all regions of Russia. Today SV-Auto has dealers 2007 and specializes in genuine and non-genuine spare parts for Euro- in Surgut, Birobidzhan, Tyumen, Grozny, Astrakhan, Krasnoyarsk, pean and Asian vehicles. Makhachkala, Nizhny Novgorod, Novosibirsk, Ryazan, Chelyabinsk, E-shop also offers engine oil, technical fluids and accessories for Stavropol, Astana and Belarus. vehicle tuning. Besides sales of spare parts in Moscow, the company

ZZAP.RU, Moscow www .zzap .ru ZZap.ru Internet portal is a retrieval system for passenger car, ber (article) of automotive part manufacturer; vehicle brand; mainte- and motorcycle spare parts. ZZap.ru on-line search of spare parts of- nance catalogues; VIN- code of the vehicle. fers a wide range of foreign and domestic automotive parts. Over 2,000 Search of spare parts is carried out in Moscow, St. Petersburg, manufacturers and distributors have already posted their price lists in Volgograd, , Kazan, Krasnodar, Krasnoyarsk, Nizhny the catalogue database. Novgorod, Novosibirsk, Omsk, Perm, Rostov-on-Don, Samara. More- The necessary spare parts can be searched by any parameters: num- over, it covers , Belorussia and .

AVANTA, Chelyabinsk www .avanta74 .ru AVANTA company was established in 1993. Originally the company The company delivers wholesale orders out of Chelyabinsk region. specialized in retail of spare parts for domestic vehicles. In 1995 the com- In 2006 all retail shops were united in Avtoline network. The company pany started to develop the market of spare parts for imported vehicles. established central stock as well as a specialized shop for service centers In 1998 SUV spare parts were added to the range of goods. and companies. In 2000 spare parts for Japanese vehicles were added to the retail as- In 2007 direct supplies of automotive parts from Japan started. sortment. A year later direct supplies of spare parts from Germany started. In 2013 AVANTA company became an official representative of KYB In 2001 the company became the only in the region dealer of lead- brand (Japan), specializing in shock absorber production. ing German manufacturers: BOGE, SACHS, KOLBENSCHMIDT, LEM- Today the company has customers in Bashkortostan, Ural district, FORDER. It is also RUVILLE and GKN dealer. Siberia and Kazakhstan. In 2003 the company launched wholesale department under Tech- noTrade brand.

AVTO 49, Moscow www .auto49 .ru AVTO 49 company was founded in 1991 (BI-BI trademark). Today it AVTO 49 and BI-BI shops sell goods both for cash and cashless pay- is a federal network of shops in 40 cities in the European part of Russia, ment. including Moscow, St. Petersburg, Kazan, Penza, Ulyanovsk, Izhevsk, Direct supplies of genuine products of leading manufacturers’ Cheboksary, Saransk, etc. plants guarantee high quality of goods in all shops and enable to provide All shops have a range of over 12,000 items of goods for car repair a wide product variety and the best prices. 85 shops of the network have and care, spare parts, consumable materials and accessories. departments for foreign vehicle spare part sales.

Other marketing reports can be ordered at AUTOSTAT analytic agency. 54 Telephone: +7 (499) 685-01-51, +7 (8482) 60-55-53, eng.autostat.ru, e-mail: [email protected] Passenger car component and spare part market in Russia MARKETING REPORT

Profiles of spare part dealer companies

AUTO-ALLIANCE, Moscow www .autoopt .ru Auto-Alliance is a part of the Group of wholesale companies, spe- and special vehicles and a large number of associated automotive com- cializing in automotive component sales, and large retail automotive ponents. There is also a big variety of KAMAZ, MAZ, GAZ, Ural cabs. shops in Moscow and Moscow region. The company has been in the au- The company has 8 wholesale centers in Moscow and Mos- tomotive component market for over 20 years. Wholesale departments cow region. Wholesale stores of the company are located in Nizhny of Auto-Alliance are dealers of MAZ, KAMAZ, Autodiesel, PO MMZ, PO Novgorod, Yekaterinburg, Neftekamsk and Perm. The own carrier MTZ and other OEMs. company provides regular supplies of the whole range of components Large warehouses of the company enable to have over 160,000 to all branches of the network. 5,000 companies from all Russian re- items of spares for all domestic passenger cars, trucks, buses, municipal gions and CIS countries are Auto-Alliance’s customers and partners.

AUTODOC, Moscow www .autodoc .ru Autodoc company has been supplying spare parts for foreign vehi- Today Autodoc e-shop specializes in express-delivery of spare parts cles since 1998. In 2004 the company’s e-shop was opened and in 2007 from United Arab Emirates, Germany, America, Japan and Korea as well regional retail network was launched. The company’s price list includes as wholesale of spare parts from the stocks in Russia. offers of over 500 suppliers – that is over 200 million offers for 22 mil- The company has over 200 shops in 126 cities of the country. lion items of 3,000 trademarks.

AUTO-EURO, Moscow www .autoeuro .ru AUTO-EURO company has been operating in the Russian spare The partners of the company are suppliers of the largest Europe- part market for over 25 years. Since 2002 it has been a part of In- an automotive concerns. AUTO-EURO is an official dealer of the larg- ternational spare part distributors association Group Auto Union In- est industrial concern Bosch, and collaborates with other well-known ternational and its national department Group Auto Union-Russia. automotive spare part manufacturers such as AMC, ATE, AVA, Bosal, The major activity is wholesale trade of spare parts for European and Boge, Contitech, Delphi, Elring, Gates, GKN, Hella, Japanparts, Kayaba, domestic vehicles. Khecht, NGK, Lemforder, Launch, Mahle, Meyle, Ruville, SKF, Textar, Since 2007 the range of goods for Japanese and Korean vehicles has Sachs, SWF, Valeo, Varta, Wahler, 555 and many other spare part man- been expanded. ufacturers. Today the company’s assortment includes over 80,000 spare parts New activity of the company is attraction of service stations as key for passenger cars and commercial vehicles. All spare parts are certified customers. The company offers not only spare parts but also automotive and provided with warranty. service and staff training in its own training center. In 2011 AVTO-EURO launched special support program for new cus- E-shop offering over 10 million items of spare parts for foreign ve- tomers, bulk buyer of spares for foreign vehicles. hicles was also launched.

AUTOKONTINENT, St . Petersburg www .autokontinent .ru Autokontinent company has already been operating in the auto- in Europe, Asia and Africa. The company has two warehouses in St. motive component market for 20 years. In 1997 the company started Petersburg and Moscow. Partnership with contract carriers pro- supplies of spare parts for European vehicles. Today Autokontinent vides the shortest delivery time. The company offers products of has a range of products from leading suppliers for both passenger AMC, BEHR-HELLA, BERU, BOGE, BREMI, CHAMPION, DOLZ, EL- cars and light commercial vehicles. In 2013 the company’s product RING, FERODO, GLASER, HEPU, LEMFOERDER, MAHLE, MECARM, range was added with truck components and the development of MONARK, PAYEN, SACHS, SWAG, TRW, VEMO, VAICO, etc. The motor vehicle sector was started. Autokontinent company is a part company provides free-of-charge delivery to its partners in more of ATR purchasing group, uniting the largest wholesale companies than 60 cities of Russia.

AUTO MASTER TRADING, Moscow www .automaster .ru Auto Master Trading company was founded in 1993. Since then the New product groups are constantly added to the company’s assort- company has worked its way up from retail and jobbing to the level of a ment in order to meet all customers’ needs from the company’s stock. large company with more than 50,000 items of spare parts in its stock. All products are certified and provided with manufacturers’ warranty. Pricing policy of the company enables to have mutually beneficial All Auto Master Trading company’s suppliers represent the world lead- collaboration with retail customers and small service centers as well as ing trademarks and supply their products to the leading carmaker’s plants. with large regional warehouses. Most customers collaborate with the company for 5 and more years.

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Profiles of spare part dealer companies

AUTOTRADE, Irkutsk www .autotrade .su Autotrade company has been one of the largest representatives The partners of the company are XINYI AUTOMOBILE GLASS, of famous manufacturers of spare parts for Japanese and European TAIZHOU JUTAI CAR PARTS, CRYOMAXCOOLING SYSTEM, DEPO vehicles since 1998. AUTO PARTS IND, GUANG ZHOU JIN FENGSOUTH RADIATORS, NSK. The company specializes in wholesale and retail sales of spare parts We should also mention that besides Irkutsk, Moscow and Novo- and has representative offices in Moscow and Novosibirsk. Moreover, sibirsk, Autotrade branches are located in Ryazan, St. Petersburg, Ke- Autotrade can organize product delivery to any region of Russia and merovo, Krasnoyarsk, Angarsk, Ulan-Ude, Khabarovsk, Vladivostok, the CIS. All products comply with ECE UNO requirements and are certi- Artem, Almaty (Kazakhstan), Abakan, Bratsk, Barnaul and Blagove- fied. Besides spare part sales, Autotrade supplies body parts and radia- schensk tors and offers automotive glass mounting.

ACCENT-AUTO, Barnaul www .aa22 .ru Accent-Auto is the largest in Altay shop selling genuine and non- trics, spare parts for suspension, transmission and engine repairs, a genuine spare parts for European, Japanese and Korean vehicles. The variety of consumable materials and components for Renault, VW, company has been operating in the Altay automotive market for over Audi, Skoda, Honda, Hyundai, KIA, Mazda, Mitsubishi, Nissan, 20 years. Subaru, Suzuki, Toyota etc. A range of the goods is about 30,000 items of products of over Today Accent-Auto company has five branches in Barnaul, a shop in 150 world brands. There is a full range of optics and body parts, elec- Biysk and Gorno-Altaysk.

ARMTECK, Moscow region www .armtek .ru Armtech is an information service, united independent wholesale cess to Armtech information resources: E-shops, service program and operators, specialists in the market of spare parts for foreign passen- a unified network of Armtech sites. This enables to expand product ger cars and trucks. Organization purpose was to offer an integrated range up to 250,000 items of more than 500 brands of spare parts for information service in order to meet customer needs, as well as to passenger cars and trucks, including both wholesale and retail. create a single strong brand in the market of automotive component Armtech branches operate in Bryansk, Volgograd, Voronezh, wholesale. Yekaterinburg, Kazan, Krasnodar, Moscow, Nizhny Novgorod, No- Armtech integrated information service enables companies to ex- vosibirsk, Perm, Rostov-on-Don, Samara, St. Petersburg, Saratov, Ufa change information (experience and knowledge accumulated over the and Chelyabinsk. Armtech is also represented in the Belorussian market long history of operation in the spare part market), as well as to get ac- (Minsk, Mogilev, Grodno, Brest, Gomel, Polotsk).

VOSHOD-K AUTO, Moscow www .opt-russtd .ru VOSHOD-K AUTO company, a part of AVTORUS Group has been Regular partners of the company are over 2,000 suppliers, the as- operating in the automotive spare part market for almost 20 years. The sortment exceeds 60,000 items. VOSHOD-K AUTO specializes in whole- company offers different spares for foreign and domestic vehicles, ser- sale and retail trade. The company is an official dealer of OEM compo- vice fluids and automotive oils, tires, disks, batteries, etc. All products nent and world famous trademarks. are certified and oriented to almost all vehicles.

GAR-PARTNER, Kaluga www .gar-partner .ru The network of local distribution centers GAR-Partner is an integral repairs and maintenance. The product range includes spark plugs and part of the distribution system of International Group Groupauto in bulbs, belts and rollers, repair kits, fuel and water pumps, suspension Russia, which makes parts of leading world manufacturers and unique and steering parts, brake disks and shoes, filters, fluids and oils, bearings services available in every region. and clutches, wiper blades, shock absorbers, lights. GAR-Partner offers customers constant availability of a balanced GAR-Partner is represented in Kaluga, Obninsk, Serpukhov, Tula, assortment of 30,000 items of spare parts for scheduled preventive Vladimir, Ivanovo and Ryazan.

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Profiles of spare part dealer companies

BERG GROUP, Moscow www .berg .ru BERG Group, one of the leading distributors of spare parts, lubri- BERG Group’s catalogue contains over 22 million items of auto- cants and service equipment in Russia, was founded in 1997. motive goods; over 80,000 items of goods are constantly available BERG Holding and INTERAVTO companies headquartered in Mos- in the central stock (and 30,000 items are in the regional warehous- cow and Irkutsk operate under BERG trademark. BERG Holding and IN- es). Today the company has 18 branches and 15 trade missions in TERAVTO regional stores and sales offices are located in 16 cities. The different regions, which enables to fill orders of customers from all client base includes 16 thousand customers. over Russia effectively. In 2013 BERG Group became a part of AD Russia Group, which is a BERG Group has branches in Moscow, Yaroslavl, Krasnodar, part of the largest trading group in Europe Auto Distribution International Kazan, Samara, Yekaterinburg, Novosibirsk, Ufa, Irkutsk, Bla- (ADI). BERG Group is an official distributor of more than 100 brands – goveschensk, Khabarovsk, Vladivostok, Ulan-Ude, Chelyabinsk, leading manufacturers and suppliers of automotive components. Chita, etc.

DOZHD, Moscow www .rain-auto .ru Dozhd company has been specializing in wholesale trade of Today a range of goods in stock exceeds 20,000 items. The automotive components for Russian (VAZ, GAZ, Oka, Moskvich, catalogue contains a variety of different components for foreign IZH, UAZ) passenger cars since 1993. Later the product range vehicles such as Audi, BMW, Ford, Honda, Hyundai, KIA, Mazda, was added with spare parts for Korean vehicles and automotive Mitsubishi, Nissan, Opel, Peugeot, Renault, SEAT, Skoda, Toyota, accessories. At the same time the company was increasing storage Volkswagen. area, extending its product range and improving technical facilities. Dozhd company has www.rain-auto.ru spare part e-shop.

DUNFAN, Moscow www .dunfan .ru Dunfan company has been selling automotive spare parts since Dunfan company is an official dealer of Robert Bosch GmbH 1994. For these years, the company has greatly increased its product in Russia and authorized dealer of Hella KG Hueck & Co. In 2001 range, launched new shops; the number of partners in Russia and DUNFAN company became an authorized distributor of VDO (Con- the CIS is constantly growing. The company offers Zexel, Bosch, tinental Automotive GmbH trade mark). VDO, Delphi, Denso products. Since 2012 Dunfan has been supplying spare parts for Delphi die- Price policy differs depending on the partner (from small-batch sel equipment as an authorized Delphi dealer. Dufan also supplies the to large companies). The company pays special attention to retail whole range of Hartridge and Texa diagnostic equipment. trade of spare parts in its shops.

KOREANA, St . Petersburg www .koreanaparts .ru Koreana company has been specializing in the sales of spare parts vehicles, offers the wholesale supplies of spares for Korean cars to the and servicing of Korean vehicles (Hyundai, KIA, Daewoo, SsangYong large companies and small shops, launches new service centers. and Chevrolet) since 1999. The site of Koreana company contains e-shop offering spare parts Today the company has over 70 spare part shops in St. Petersburg for Korean vehicles to retail customers in all Russian regions. The order and Leningrad region, Moscow and Moscow region, Bryansk, Velikiy can be got at the company’s offices in more than 100 cities of Russia. Novgorod, Petrozavodsk, Pskov, Tver, Tula, Yaroslavl and other cities of We should also mention that Koreana is an official dealer of spare part Russia. Koreana develops retail network of spare part shops for foreign manufacturers such as Mando, BESF1TS, Parts-Mall, Luzar and KraftTech.

KEMP, Moscow www .kemp103 .ru KEMP was founded in 1989. The company specializes in the sales Sales of spare parts for domestic and foreign vehicles remain the of spare parts for passenger cars. Over 20 shops have been constructed most important activity for the company. Thousands of components and launched for over 20 years. and associated goods, such as automotive chemicals, accessories, elec- In February 2004 KEMP Ltd. was reorganized into holding. It united tric equipment, audio players, tires, disks, batteries, can be ordered at three separate companies. One of them is Trading Company 103 Ltd.– the site or bought at the shops of the company. the largest in the holding. Trading Company 103 started KEMP 103 shop The second and the third companies are Ekotechsouz (www.ets- network (www.kemp103.ru), which originally included 7 branches. To- kemp.ru) and KEMP (www. kemp1.ru) – Internet shops, selling tires, day the company has 22 branches. spare parts for Russian and foreign vehicles, automotive oils. KEMP 103 network contains shops with own price policy but central- ized management system, including supplies to the branches and goods and service quality control.

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Profiles of spare part dealer companies

LADA DETAL, Togliatti www .lada-detail .ru LADA Detal is a network of retail shops specializing in the sales of LADA Detal retail network is planned to be increased up to 1,600 genuine spare parts for LADA vehicles since 2012. The first LADA Detal shops to cover all Russian cities with more than 50,000 population. shop was opened in Togliatti on 19 April 2012. The partners of the network are AVTOVAZ, VAZINTERSERVICE, All retail centers conform to LADA Detal standard, including corpo- DAAZ, OSVAR, SAAZ, EVR, Motor-Super, Autosvet, Serdobsk engi- rate identity (company logo and unified shop equipment), full range of neering plant, MefroWheels, Gates, Federal Mogul, Bosch, TD EPK, high-quality genuine spare parts and consumable materials for LADA Pramo-Electro, Zelta Ditton, BIG Filter. vehicles with competitive prices, competent staff and discount system for regular customers.

LADAIMAGE, Togliatti www .lada-image .ru LADAImage company is 100% AVTOVAZ subsidiary and its official work; product strategy for AVTOVAZ spare parts, including their brand- distributor of spare parts for LADA models in the domestic market and ing (individual package); centralization of spare part purchasing from abroad. other suppliers. The main strategy of LADAImage company is provision of LADA In 2011 LADAImage became a distributor of Joint Automotive Tech- owners with full repair and maintenance service in every place at ev- nologies enterprises: DAAZ, DZR, DZS, DZPM (Dimitrovgrad), SAAZ ery time, including genuine spare parts with competitive prices always (Skopin), Avtosvet Plant (Kirzhach), OSVAR (Vyazniki), VAZINTERSER- available. VICE, Motor-Super (Togliatti) and SMZ (Serdobsk). According to the distribution agreement with AVTOVAZ, LADAImage Today LADAImage sells spare parts for over 1.5 billion roubles is responsible for development of effective spare part distribution net- per month.

LAYERT, Moscow www .layert .ru Layert company was established in 1994 and sells spare parts in - www.all-tyres.ru – tires, disks and off-road accessories shop. Moscow and other Russian cities. The company offers a wide range A range of the goods includes over 1 million spare parts and of spare parts from components to tires, disks, lubricants, automotive components. All necessary components for foreign vehicles such as chemicals and accessories. BMW, KIA, Peugeot, etc., as well as spares for domestic brands such Today the company includes two specialized e-shops: as LADA and GAZ can be ordered on-line. - www.layert.ru – shop offering automotive chemicals, batteries, accessories and spare parts for domestic and foreign vehicles;

LADA SPETSOBORUDOVANIE, Togliatti www .lso-vaz .ru Lada Spetsoborudovanie has been specializing in wholesale LADA cars in stock. The company has flexible pricing, which enables and retail trade of spare parts for LADA cars since 1991 and has to provide individual approach to the customers. All products have all reputation of a reliable supplier of genuine and certified spare parts necessary certificates. and bodies in Russia. The company is one of the leaders in wholesale and retail trade of Lada Spetsoborudovanie has large storage area with sidings, spare parts for LADA vehicles. which enable to have a wide range of all necessary spare parts for

MOSKVORECHIE TRADING, Moscow www .moskvorechie .ru Moskvorechie Trading company has been operating in the wholesale regular customers. More than 200 specialists of the company provide imported spare part market since 1994. The major area of the company’s customer support. activity is wholesale trade of high-quality spare parts. Moskvorechie Trading has well-developed branch network in Kazan, The own storehouse contains a wide range of goods – over Magnitogorsk, Nizhny Novgorod, Rostov-on-Don, Voronezh, Samara, 100,000 items of spare parts for European, Korean and Japanese Tula, Ryazan, Vladimir and Yaroslavl. vehicles. The company offers free delivery; a large fleet of vehicles Moskvorechie Trading is a part of AD Russia Group, a major player enables to deliver goods from 2 times a day to 3 times a week de- of Auto Distribution International (ADI) international trade group and pending on the region. The company collaborates with over 2,500 the leading wholesale supplier of spare parts in Russia.

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Profiles of spare part dealer companies

NIZHBEL, Nizhny Novgorod www .nizhbel .ru NizhBel Group has been operating in the spare part market for over Logistic NB – logistics company offering warehouse and storage service. 20 years. The Group includes NizhBel - the official distributor of GAZ, Central office and logistics complex are located in Nizhny Novgorod. KAMAZ distributor, dealer of ZMZ, LADA Image (AVTOVAZ), Autode- The company is one of the leading distributors of spare parts, acces- tal-Service, SOATE, BRT, AKOM, distributor of TM Luzar, AIRLINE, Start sories and engine oils for domestic and foreign vehicles. VOLT, TRIALLI, Schaeffler Group, MAN products; Over 35,000 genuine parts for domestic and foreign vehicles are con- Automig dealer network – multibrand network of 25 retail shops of stantly available in stock for trade representatives and service centers. spare parts for GAZ, VAZ, UAZ, KAMAZ and foreign vehicles, automo- Regular partners of NizhBel are over 450 companies and 300 trade tive accessories, engine oil, passenger trailers; representatives.

PARTCOM, Nizhny Novgorod www .part-kom .ru PartCom company has been in the market since 2004. It specializes Its customers are service and dealer centers and automotive shops in wholesale supplies of spare parts, oils, automotive chemicals, optional – altogether over 5,000 companies. equipment and accessories for foreign passenger cars. PartCom is a distributor of over 100 global component manufac- The company is one of the largest spare part distributors in Volga turers including KYB, Bosch, TRW, NGK, Schaeffler Group, Osram and Federal District. Its head office and a central warehouse are located in others. Its product range exceeds 25 million items in its stock and to- Nizhny Novgorod. The company also has branches and regional stor- order from the suppliers’ stores. The company is a part of International ages in Moscow, St. Petersburg, Kazan, Samara, Ufa, Kirov, Naberezh- distributors’ group GroupAuto International. The company’s transport nye Chelny, Perm, Izhevsk, Ulyanovsk, Cheboksary, Saratov and Penza fleet contains 150 trucks. as well as logistic warehouses in more than 40 regions.

PASKER LTD, Moscow www .pasker .ru PASKER LTD. specializes in wholesale supplies of spare parts for Rus- for foreign vehicles such as Chevrolet (Lanos, Lacetti, Aveo), Daewoo sian and foreign vehicles as well as optional equipment, accessories and (Matiz, Nexia), Hyundai (Accent, Getz), KIA (Spectra), Renault (Lo- special literature. The assortment exceeds 20,000 items of spare parts. gan), etc. A range of spare parts for foreign vehicles is constantly added The company has branches in Voronezh and Nizhny Novgorod. with new product groups. The company is a distributor of FOBOS trademark, which unites a A variety of batteries includes Bosch, Cobat, Moratti, Mutlu, Nord, range of leading enterprises, manufacturing automotive components: Titan, Topla, Varta products. Spare parts for domestic vehicles are rep- exhaust systems, suspension springs, brake shoes and hoses as well as resented by AVTOVAZ, SAAZ, FOBOS, OSVAR, Plaza, Kraft, Finwhale, some other items of optional equipment and spare parts. Fenox, Sachs and other brands. Warehouse of PASKER LTD contains a wide range of automotive The company’s fleet includes over 50 heavy and light trucks. spare parts, accessories, optional equipment and consumable materials

PORT3, Moscow www .port3 .ru Online-hypermarket PORT3 started operation in 2007. The company Today company is in the TOP-10 largest e-shops in Russia and offers specializes in wholesale and retail distribution of spare parts for Japa- over 70 million items from different manufacturers. nese, European, American, Korean and Chinese vehicles and domestic Genuine spare parts and as well as their analogues can be searched passenger cars trucks and buses. by code (OEM-number, article), VIN or catalogs of car manufacturers.

RBR AUTO, Novosibirsk www .rbrauto .ru RBR AUTO company was founded in 1997. The company specializes company has customers in the regions from Sochi to Sakhalin. All parts in supplies and distribution of optics, accessories, xenon, body parts, are absolute analogues of genuine parts and have Russian certificates of mirrors, automotive glass, radiators and other spare parts of DEPO, conformity. The company’s web site contains a complete list of available TYC, TKY (TYG), API, Cryomax and XYG trademarks for most European, parts and enables to order necessary items. The company operates in Japanese, Korean vehicles in Russia. wholesale and retail trade of spare parts. RBR AUTO created structure of supplies of body parts and automo- Two branches of the company are located in Moscow and tive optics of the best Taiwanese, Japanese, Chinese manufacturers. The Novosibirsk.

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Profiles of spare part dealer companies

RENAISSANCE, Moscow www .rmsauto .ru Renaissance has been operating in the wholesale automotive spare Suppliers of Renaissance are leaders of automotive component part market for more than 15 years. Today the company offers over 35 market from Europe, USA and Asia. The company has e-shop for million items of components for foreign passenger cars, trucks and spe- retail customers. Renaissance partners have offices all over the coun- cial vehicles. Over 30 thousand items of genuine and non-genuine spare try. The company also carries out own franchise project in 46 cities parts are available at 10,000 square meters of the company’s warehouses. of Russia. Renaissance partners are universally recognized spare part manu- Distributed brands include Gates, Delphi, SWAG, Denso, Valeo, facturers and reliable carrier companies. SWF, Amiwa, TSN, Goodwill, Filtron, etc.

ROSSKO, Novosibirsk www .rossko .ru ROSSKO company has been operation in the Russian automotive system, cooling and power supply systems, engine, clutch, transmission, spare part market since 1997. filtering parts, windshield wipers, automotive lighting, oils, technical liq- ROSSKO offers spare parts from the world leading OEM suppliers. uids and many others. Since 2003 ROSSKO has been a part of GROUPAUTO RUSSIA, the na- ROSSKO is also the leading distributor of CTR, DENSO, FAG, GATES, tional association of the leading Russian suppliers of spare parts for pas- INA, KYB, LUK, LYNXauto, NGN, Maruichi, Nisshinbo, OSRAM, Sidem, etc. senger cars and commercial vehicles. The company has 62 distribution centres in the cities such as Moscow, No- The company’s catalogue includes alternative offers for a wide range vosibirsk, Astrakhan, Vladivostok, Volgograd, Yekaterinburg, Krasnodar, of product groups: suspension, brake system, steering system, ignition Nizhny Novgorod, Orenburg, Rostov-on-Don, Samara, Stavropol, etc.

TEHKOM, Moscow www .texkom .ru Tehkom company has been engaged in wholesale and retail trade of prices. The company also sells numbered equipment: VAZ, ZMZ, UMZ, spare parts since 1991 and has a large spare part retail network with over MMZ engines, cylinder blocks for passenger cars and trucks, cabs for 20 spare part shops in Moscow and Moscow region. There is also e-shop GAZ, KAMAZ, MAZ, UAZ vehicles, chassis for GAZ, UAZ, ZIL vehicles, for retail customers. trailers of SAZ, KMZ, MAZ, Trailer, MZSA production. The company sells spare parts for domestic and foreign passenger Besides retail trade the company is engaged in spare part wholesale cars and trucks. Over 65,000 items of goods are always available in the supplies from Moscow warehouses to all regions of Russia. The delivery stock. A range of the products includes oils, automotive chemicals, car in Russia is also provided for spare part wholesale. AVTOMAG, a part care products, accessories, special tools, automotive luggage carriers, of Tehkom company is an official dealer of automotive spare part and trailers for passenger cars and spare parts for them, turnbuckles, spares component manufacturers such as AVTOVAZ, Avtopribor plant (Vladi- for bottle-gas equipment, etc. mir), SAAZ, DAAZ, Avtosvet plant, OSVAR, ZiT, Balakovorezinotehnika, Tehkom has direct supplies from spare part and automotive compo- VAZINTERSERVICE. nent OEM plants, which enables to have a wide range of goods and low

FORWARD AUTO PARTS, Moscow www .autobody .ru Forward Auto Parts company was founded in 1992. It specializes in The company offers body parts (bonnets, wings, bumpers, supplies and distribution of non-genuine body parts, as well as exterior grille, wheel arches, front panel, etc.), lighting system (headlights, lighting devices, mirrors, radiators and chassis parts. Spare parts are sup- direction indicators, fog lamps, tail lights, lamps), rear view mirrors, plied directly from the leading Taiwanese, Chinese, Japanese, Indone- cooling system (radiators, radiator fans), air conditioning system sian, Italian, manufacturers. (radiators, compressors), chassis parts (levers, shock absorbers, Forward Auto Parts stocks are located in Moscow, St. Petersburg, pads), tuning parts (alternative optics, body parts), engine oils and Yekaterinburg and Omsk. Forward Auto Parts has over 10,000 regular automotive fluids. customers.

FORUM-AUTO, Moscow www .forum-auto .ru The company specializes in wholesale trade of spare parts for Eu- Russia. Today the company has branches in St. Petersburg, Rostov-on- ropean vehicles. In 2002 the company started supplies of spare parts Don, Krasnodar, Yekaterinburg, Saratov, Samara, Bryansk, Voronezh, for domestic vehicles and in 2004 the assortment was extended with Magnitogorsk and many other cities (about 60 branches). The company parts for Asian cars. In 2005 the company became a part of International focuses on cities with not less than 500,000 population. Spare Part Distribution Association ATR, which includes leading compa- Forum-Auto offers products of dozens of global component manu- nies of the European spare part market. facturers (555, Ajusa, Beru, Bosch, Brembo, Castrol, Champion, Denso, In 2007 the holding started new activity – sales of truck and trailer Exide, Fenox, Gates, Hella, Knecht, KYB, Liqui Moly, Meyle, Nipparts, components. Osram, Philips, Sachs, SWF, Thule, TRW, Valeo, ZF, etc.). In 2002 Forum-Auto began development of its branch network in

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Profiles of spare part dealer companies

UNIKOM, Vladivostok www .uniqom .ru Unikom company was founded in 1995. Today it is one of the lead- the company has over 80 suppliers and its product range exceeds ing distributors of automotive products in Russia. The automotive goods 30,000 items. are distributed all over Russia. Unikom is the largest distributor of Koito, The Furukawa Battery, The company has 10 branches and 17 representative offices in Vladi- NHK, Nitto, Kangaroo, Soft99, TCL, Eikosha and is in the TOP-3 larg- vostok, Khabarovsk, Irkutsk, Novosibirsk, Krasnoyarsk, Yekaterinburg, est customers of Advics company. Koito, FB, Kangaroo, Soft99, TCL, Krasnodar, Moscow, St. Petersburg. Eikosha brands are leaders in the Russian market in their groups among A range of the products includes basic automotive product their competitors from their countries. In 2013 the company became an groups: spare parts for foreign vehicles, automotive chemicals, exclusive distributor of some brands in the CIS and started to develop a car care products, automotive accessories and appliances. A range network of exclusive dealers. of Unikom goods is constantly extended in target product groups, Central stocks in Vladivostok and Moscow enable the company to the assortment is developed in high and medium price segments, supply components from Japan, Korea, South-East Asia as well as from offering alternative products to the company’s customers. Today European manufacturers. The company currently employs 550 staff.

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