Automotive industry in Russia
Automotive production is a significant industry in Russia, directly employing around 600,000 people or 1% of the country's total work force. Russia was the world's 15th largest car producer in 2010, and accounts for about 2% of the worldwide production. In 2009 the industry produced 595,807 light vehicles, down from 1,469,898 in 2008 due to the global financial crisis. The largest companies are light vehicle producers AvtoVAZ and GAZ, while KAMAZ is the leading heavy vehicle producer. Eleven foreign carmakers have production operations or are constructing plants in Russia. As of August 2012 Russia is the largest car market in Europe
- 1 History
- 2 Structure
- 3 Economic and political significance
- 4 Market characteristics
- 4.1 History
- 4.2 Current state sales
- 5 Local automakers
- 6 Factories of foreign companies
- 7 Manufacturers of automobile engines
- 8 Scientific institutions
- 9 References
The Soviet Union possessed a large automotive industry. In late 1987, the industry produced 2 million cars, satisfying 45% of the domestic demand. But after the dissolution of the Soviet Union the industry faced a crisis due to competitive foreign imports. Japanese brands overtook the lower-end Ladas; on the high-end sector, Volga sales dropped in favor of German-built Mercedes and BMWs. By 1993, total output was down 14% compared to 1990 levels. Lada's declining sales during the 1990s, and toughening European Union emissions requirements, saw exports to Western Europe discontinued by the end of the decade. Lada had enjoyed particularly strong sales in Britain, peaking at more than 30,000 sales a year in the late 1980s, but had failed to remain competitive with other budget brands over the subsequent few years.
2000 to 2008
In the early 2000s, the Russian economy recovered. Macroeconomic trends were strong and growing incomes of the population led to a surging demand, and by 2005 the Russian car market was booming. In 2005, 1,446,525 new cars were sold, including 832,200 Russian models and 614,325 foreign ones. Foreign companies started to massively invest in production in Russia: the number of foreign cars produced in Russia surged from 157,179 in 2005 to 456,500 in 2007. The value of the Russian market grew at a brisk pace: 14% in 2005, 36% in 2006 and 67% in 2007—making it the world's fastest growing automotive market by 2008.
To boost the market share of locally produced vehicles, the Russian government implemented several protectionist measures and launched programs to attract foreign producers into the country. In late 2005, the Russian government enacted legislation to create special economic zones (SEZ) with the aim of encouraging investments by foreign automotive companies. The benefits of operating in the special economic zones include tax allowances, exemption from asset and land taxes and protection against changes in the tax regime. Some regions also provide extensive support for large investors (over $100 million.) These include Saint Petersburg/Leningrad Oblast (Toyota, GM, Nissan) and Kaluga Oblast (VW). Kaluga has been especially successful in attracting foreign companies, as has been Kaliningrad Oblast.
Since the 2000s, foreign companies have been flocking to enter Russia, seeing Russia as a local production location and export powerhouse. Russia's labor, material and energy costs are only 1/6 compared to those in Western Europe.
Global financial crisis
Russia's automotive industry was hit hard by the late 2000s recession, which started in the United States. Production of passenger cars dropped from 1,470,000 units in 2008 to just 597,000 units in 2009. Lorry production fell from 256,000 to 91,000 in the same period.
In late 2008, the Russian government introduced protectionist measures, worth $5 billion, to improve the situation in the industry. This included $2 billion of bailouts for troubled companies and $3 billion of credits for buyers of Russian cars. Prime minister Vladimir Putin described the move as vital in order to save jobs. The tariffs for imported foreign cars and trucks were increased to a minimum of 50% and go up to 100%. The tariffs are linked to the engine size of the vehicle. The increased duties led to protests in Russian cities, most notably in Vladivostok, where the importation of Japanese cars is an important sector of the city's economy. To compensate for the losses of the Vladivostok businesses, Prime Minister Putin ordered the car manufacturing company Sollers to move one of its factories from Moscow to Vladivostok. The move was completed in 2009, and the factory now employs about 700 locals. It was planned to produce 13,200 cars in Vladivostok in 2010.
The most efficient anti-crisis measure executed by the Russian government was the introduction of a car scrappage scheme in March 2010. Under the scheme, buyers of new cars could receive a subsidy of up to 600,000 rubles (20,000 USD). Sales of Russia's largest carmaker Avtovaz doubled in the second quarter of 2010 as a result, and the company returned to profit.
By the end of 2010, automotive production had returned to pre-crisis levels. Nine out of the ten most sold models in Russia in 2010 were domestically produced, with Avtovaz's Lada models topping the list. In the first 7 months of 2010, sales of Lada cars increased by 60%, the Korean KIA reported a jump of 101%, and Chevrolet's sales rose by 15%.
In 2010, Russia was the world's 15th largest producer of cars. The Russian automotive industry currently (as of 2010) accounts for about 2% of worldwide car production.
The Russian automotive industry can be divided into four types of companies: local brand producers, foreign OEMs, joint ventures and Russian companies producing foreign brands. In 2008, there were 5,445 companies manufacturing vehicles and related equipment in Russia. The volume of production and sales amounted to 1,513 billion rubles.
The four most popular cars in Russia in 2009 were all AvtoVAZ models. The economy car Lada Priora topped the list with 84,779 sold units. Lada Samara was second with 77,679 units sold in Russia, and the classic Lada 2105/2107 was third with sales of 57,499. Lada 2105 was expected to considerably increase sales following the car scrappage scheme launched in March 2010. The higher-end Lada Kalina was the fourth most sold car in Russia in 2009, selling 52,499 units that year.
In the light commercial vehicle sector, the GAZelle van, manufactured by GAZ has been very popular, occupying a market share of 49% in 2009 and selling 42,400 units. The Avtoperevozchik magazine declared GAZelle as the most successful vehicle of 2009 in the Russian automotive market.
In recent years, Russian automotive industry companies have launched several new projects, some of which are highly ambitious.
Marussia brand, produced by Marussia Motors, became the first modern sports car and the first supercar produced in Russia. The Marussia B1 was launched on 16 December 2008 in the New Manezh Hall in Moscow. On 10 September 2010 the first Marussia Motors show room opened in Moscow. Marussia Motors is led by Nikolay Fomenko, a notable Russian showman, singer, actor and racer.
In 2010, the company acquired a 'significant stake' in the Virgin Racing Formula One team, which was renamed Marussia Virgin Racing from 2011. This team is to become the first ever Russian-owned team in Formula One.
Another ambitious Russian project is Yo-mobile, a city car that can burn both gasoline and natural gas and is connected to a pair of electric motors. The car was introduced on 13 December 2010 in Moscow, a product of a joint venture between Yarovit, a producer of trucks based in St. Petersburg, Russia and the Onexim investment group, headed by Mikhail Prokhorov, who is the leader and financier of the project. Prokhorov plans to invest around €150 million (US$200 million) in the venture, intending the vehicle to "break the stereotype saying Russia can't produce good cars."
The largest company of Russia's automotive industry is Avtovaz, located in the city of Tolyatti. It currently employs more than 130,000 people, and its Lada models dominate the Russian car market. Avtovaz models account for about 50% of Russia's total car production.
Russia's second largest car manufacturer is Avtotor, located in Kaliningrad Oblast. Avtotor performs SKD, CKD or full-cycle assembly of foreign models, such as BMW, Kia, and General Motors' Cadillac and Chevrolet vehicles. In 2009, Avtotor produced 60,000 cars and accounted for 10% of Russian car production.
Avtoframos, the third largest car manufacturer, produced 49,500 cars in 2009. Its plant is located in the south-east part of the city of Moscow. Avtoframos is a joint venture between France's Renault and the Moscow city administration, but is majority owned by Renault. The company manufactures Renault Logan and Renault Sandero models. The ratio of Russian-made parts is 54%. The figure is expected to rise to 74% by 2012.
In the heavy vehicle sector, the largest company is the truckmaker KaMAZ. It is also one of the largest companies in the whole Russian automotive industry. In 2010, KaMAZ sold a total of 32,293 trucks; 28,254 in Russia and 4,039 in foreign countries.
Another very important company is GAZ, which makes vans, trucks and busses, among other products. Its most popular product is the GAZelle van, which has a market share of 49% in the light commercial vehicle market. In 2009, the company launched an improved version, called GAZelle Business. In the bus sector, GAZ occupied a market share of 77%. It sold 6,169 buses in the small-class, 1,806 in the medium class and 1,156 in the large class.
Economic and political significance
Russia's automotive industry is a significant economic sector. It directly employs 600,000 people and supports around 2–3 million people in related industries. It is politically a very important part of the country's economy: firstly, due to the large number of employed people and secondly, because many citizens depend on the social services provided by automotive companies. For example, the well-being of the giant AvtoVAZ factory in Tolyatti is massively important to the city or to the region of Samara Oblast. Tolyatti is a typical monotown, a city whose economy is dependent on a single company. The factory employs around 100,000 people of the city's population of 700,000.
In 2009, former President Dmitry Medvedev launched the Medvedev modernisation programme, which aims to diversify Russia's raw materials and energy-dominated economy, turning it into a modern high-tech economy based on innovation. Following this, Russia's automotive industry has been in the spotlight due to its great potential for modernisation.
Former Prime Minister and current President Vladimir Putin has taken a personal interest in the automotive industry. In a symbolic gesture of support, Putin made a highly publicized road trip on the new Amur Highway in August 2010, driving 2,165 kilometers in a Lada Kalina Sport. Putin described the car as "excellent, even beyond my expectations", and praised it as "comfortable" and "almost noise-free." The event was intended to show support for AvtoVAZ, which was recovering from the serious economic crisis.
Russia's first car was built in 1896 by engineers and Frese and Yakovlev on based car Benz Velo. In the future, the most successful manufacturer was Russo-Balt (Riga), was released in the period 1909–1915 years about 500 vehicles of various seriy.Suschestvovali and other manufacturers (Puziryev, Ilyin), but each s are released more than a few dozen cars.
The main part of the fleet cars were foreign brands. Cars do not become a mass means of transportation. By the beginning of World War I, Russia had 10,000 machines (for comparison, in the U.S., 1.3 million in the UK 245 000, 100 000 in France).
During the First World War, in 1916 the government began construction of several factories in Moscow (AMO plant, later became plant ZIS and later ZiL), Yaroslavl (in Soviet trucks YaAZ released in 1958 became the Yaroslavl Motor Works) as well as in Mytishchi, Rybinsk, Rostov-on-Don (all these plants did not produce cars, and were converted). Due to the events of 1917 they were completed only after the Revolution.
During the Civil War in Russia
All private vehicles were requisitioned.
In the civil war automotive industry actually stayed.The only automaker AMO was produced in the years 1917-1919 of kits Fiat 15 Ter. Thereafter, he, like all automobile factories, became engaged in repair.
Became the first Soviet car truck AMO-F15 based on Fiat-15Ter, unreleased in 1925–1931 years in the factory AMO actually manually.
The first Soviet passenger car was NAMI-1 (NAMI -Scientific motor institute, RussianНаучный автомоторный институт), released in 1927–1930 years.
During these years, their needs USSR tried to cover imports, which began in the 1925 year.
In 1929 the Soviet government appealed for help in the organization of automobile production in the United States. To study in the United States were engineers were sent.
Began a large-scale construction of such plants as GAZ (Gorky Automobile Plant, which opened in the 1932 year), The burden of the first produced under license Ford Model A and Ford Model AA and KIM(Plant named Communist Youth International; GAZ branch opened in the 1929 year). AMO plant was renovated, renamed in 1933 in ZIS (factory named after Stalin). All they first began to assembly-line production. Design base was created, began their own development.
Imports were virtually abandoned.
In the 1937 year began production of the first Soviet car ZIS-101 luxury class, used by members of the Government.
In 1940 was launched the first all-wheel drive car GAZ-61, use the command of the army and made the first attempt to issue a public car KIM-10 (this plant was separated from GAZ), was unsuccessful, before the start of the Great Patriotic War was released only 500 pieces.
By 1938, the Soviet Union took the first place in Europe and second in the world for the production of trucks. Before the war, the automotive industry of the USSR produced more than 1 million cars, most of which came in the Red Army.
During the Great Patriotic War Automobile ZiS was evacuated to the rear, where on the basis of its equipment have created new and automakers UlZIS and UralZIS (now UAZ and UralAZ). GAZ in 1943 year bombed, but did not stop work. During the war has spread from the car assembly machine-kit supplied under Lend-Lease.
In 1941 began production of the first Soviet jeep GAZ-64.
The postwar period
In 1946 began production of the first car with a ponton body GAZ-M20 Pobeda, in 1948 at a former factory KIM, renamed MZMA (Moscow Plant of small cars), began production of the first compact car based on the pre-war Opel Kadett- Moskvitch 400.
These cars were the first authorized for sale to individuals, before the war, the car can only be obtained as a reward for services received and all were requisitioned from the outbreak of hostilities.
But the car is still considered a luxury because of the price several times higher than the average salary and clearly insufficient volumes of passenger cars compared to trucks and buses, which led to a economic shortage, which is characteristic for the whole of the Soviet economy (because it is a command-planned character control had no communication with customers and therefore there is a disproportion in the production of different products).
To buy a car, you had to join the queue, which could last for several years. At the same time an acquaintance could get the car faster. Another problem was the lack of service stations for private owners, so they were forced to do repairs themselves.
Demand for cars "Moskvitch" gradually began to decline and by 1980 it could be bought freely.
Cars "Zaporozhets" also could be bought freely, but they were not prestigious .
The most prestigious brands of selling cars " GAZ Volga" unreleased, too, were a huge deficit, to buy "Volga", often had to pay a bribe . Besides, up to 60% of their release sent in the organization and taxis.
In the 1950s there was a massive export cars overseas, which began with the car GAZ M-20 "Pobeda" (which was sold even in the U.S.) and the Moskvich-400. Peak export cars "Moskvich" and "Volga" came in the 60s (in 1969 were exported 64% of cars Moskvitch 408 and 412). Special organization engaged in export Avtoexport. Export stopped in the middle 90s.
At the same time start the import, mainly trucks and buses (mostly from socialist countries), brands such as ZSD Nysa, Zuk, Avia, Tatra, Ikarus, Multicar, Industriewerke Ludwigsfelde. In the 70-80s for international transport tractors purchased Volvo and Mercedes-Benz with trailers. Cars are not purchased. Import was performed by the same organization Avtoexport.
The second half of the 80s hit a new peak deficit.
In 1988, when he was allowed a small business started free sale of trucks and buses, before definitely prohibited for sale and distributed enterprises.
In the early 90s there was a massive import of cars.
With the collapse of the USSR was part of factories abroad.
In the mid-2000s, sales of foreign brands have exceeded sales of domestic brands.
Current state sales
|Brand||The total number of sold||Including|
|Hyundai||5733||Hyundai e-Mighty -3511 ||
|UralAZ||2807||Ural-4320 (6x6) -1941 ||
|It is requested that a map or maps be included in this article to improve its quality.|
|Name||Location||Year of foundation||Parent company||Car Types||Produced by the brand and model|
|AvtoVAZ||Togliatti||1966||Alliance Rostec Auto B.V. (joint venture Rostec and Renault-Nissan ;76,25%)||Cars||Lada Kalina, Lada Granta, Lada Largus, Lada Priora, Lada 4x4, Nissan Almera G11, Datsun On-do, Renault Logan 2-nd generation, Renault Sandero 2-nd generation|
|GM-AvtoVAZ||Togliatti||2002||joint venture General Motors (41,61%), AvtoVAZ (41,61%) and European Bank for Reconstruction and Development (16,78%)||Cars||Chevrolet Niva|
|PSA Bronto||Togliatti||1993||AvtoVAZ||Collectors cars, ATVs based Lada 4x4, Chevrolet Niva||Bronto|
|PSA VIS-Avto||Togliatti||1991||AvtoVAZ||Light commercial vehicle based Lada Granta, Lada Samara and Lada 4x4||VIS-2346, VIS-2347, VIS-2349|
|United Auto Group (former IZHAvto)||Izhevsk||1965||AvtoVAZ||Cars||Lada Granta, Nissan Sentra|
|GAZ||Nizhny Novgorod||1932||GAZ Group (100%)||Light commercial vehicle, minibuses||GAZ :GAZelle, GAZelle Next, GAZ Sobol, GAZ Valdai, GAZ-3309, GAZ Sadko, GAZon Next
Volkswagen :Volkswagen Jetta,
Chevrolet :Chevrolet Aveo,
Mercedes-Benz :Mercedes-Benz Sprinter Classic (1-st gen) panel van and minibus
|UralAZ||Miass||1941||GAZ Group (100%)||Medium and heavy trucks terrain (including the army), road trucks, truck buses||Ural-4320, Ural-5323, Ural-3255, Ural-6370, Ural-6368, Ural-6470|
|PAZ||Pavlovo||1932||GAZ Group (100%)||small, medium buses, school buses, buses terrain||PAZ-3205, PAZ-3206, PAZ-3204, PAZ-3234, PAZ-3237|
|KAvZ||Kurgan||1958||GAZ Group (100%)||Medium buses, school buses||KAVZ-4235, KAVZ-4238|
|LiAZ||Likino-Dulyovo||1937||GAZ Group (100%)||Large city buses, school buses, articulated buses||LiAZ-5256, LiAZ-5292, LiAZ-5293, LiAZ-6212, LiAZ-6213|
|GOLAZ||Maliye Vyazyomy, Odintsovsky District, Moscow Oblast||1990||GAZ Group (100%)||Intercity buses and coaches||GOLAZ-5251 Voyage, GOLAZ-52911 Cruise, LiAZ-GOLAZ-5256, GOLAZ-6228 Voyage L|
|Kamaz||Naberezhnye Chelny||1969||Rostec (49,9%), Avtoinvest Limited (20,81%), Daimler AG (11%), KAMAZ International Management CO., L.P.(4,25%), European Bank for Reconstruction and Development (4%), Financial and leasing company "KAMAZ" (3,72%), Decodelement Services Limited (2,73%) ;individuals (above 76000)||Medium and heavy trucks, army trucks||KAMAZ|
|NefAZ||Neftekamsk||1972||Kamaz (50,02%), Republic of Bashkortostan (28,5%)||trailers, dump trucks KAMAZ, large buses and coaches||KAMAZ, NefAZ-5299, VDL-NefAZ-5299|
|Kamaz- Marko||Neftekamsk||2012||joint venture Kamaz and Marcopolo S.A.||small buses||Bravis|
|UAZ||Ulyanovsk||1941||Sollers JSC (80%)||SUV, Light commercial vehicle||UAZ Hunter, UAZ Patriot, UAZ-2206/3303/3909/3962|
|Sollers-Isuzu||Ulyanovsk||2006||Sollers JSC||Light commercial vehicle||Isuzu N-Series|
|Ford-Sollers||Elabuga||2011||joint venture Sollers JSC (50%) and Ford Motor Company (50%)||Cars, Light commercial vehicle||Ford Kuga, Ford Explorer, Ford Galaxy, Ford S-Max, Ford Edge, Ford Transit|
|Ford-Sollers||Vsevolozhsk||2002||joint venture Sollers JSC (50%) and Ford Motor Company (50%)||Cars||Ford Focus, Ford Mondeo|
|Sollers-Dalniy Vostok||Vladivostok||2009||Sollers JSC||Cars||SsangYong :SsangYong Actyon, SsangYong Actyon Sports, SsangYong Kyron, SsangYong Rexton,
Toyota :Toyota Land Cruiser Prado
|ZiL||Moscow, Petrovsk||1916||Executive of Moscow||Medium and heavy trucks, small buses, fire trucks||ZIL-4333, ZIL-4331,ZIL-4329, ZIL-5301, ZIL-4327, ZIL-3250|
|BAZ||Bryansk||1958||none||tractors and wheel chassis dual-use (military and civilian), crane chassis||BAZ|
|Chechen Avto||Argun, Chechen Republic||2008||none||Cars||Lada Priora|
|IMS||Gzhel, Moscow Oblast||2007||Irito||SUV||Great Wall Hover H3, Great Wall Hover H5|
|Avtotor||Kaliningrad||1996||none||Cars, Light commercial vehicle||Kia :Kia Cee'd, Kia Cerato, Kia Optima, Kia Quoris, Kia Venga, Kia Soul, Kia Sportage, Kia Sorento, Kia Mohave,|
|Volzhanin||Volzhsky||1993||none||medium, large and articulated buses, intercity buses and coaches||Volgabus Cityrithm, Volgabus Rhytmix, Volgabus Dolphin, Volgabus Delta|
|Fuso KAMAZ Trucks Rus||Naberezhnye Chelny||2010||joint venture Mitsubishi Fuso Truck and Bus Corporation and Kamaz||Light commercial vehicle||Mitsubishi Fuso Canter|
|BAW RUS Motor Corp.||Ulyanovsk||2008||joint venture AMS Group and BAW||light, medium trucks and small buses||BAW Tonik, BAW Fenix, BAW Street|
|ST Nizhegorodetz||Nizhny Novgorod||2007||Nizhegorodetz||Minibuses (refurbishment of panel vans by licensed)||Ford Transit, Iveco Daily, Fiat Ducato, Peugeot Boxer, Citroen Jumper, Renault Master|
|PKF Luidor||Nizhny Novgorod||2008||Luidor||vans and special equipment based on panel vans||Volkswagen Crafter, Mercedes-Benz Sprinter, Iveco Daily|
|Kuzbassavto||Drachenino, Leninsk-Kuznetsky District, Kemerovo Oblast||2010||MARR TEC||small buses||Hyundai County|
|Derways||Cherkessk||2003||Mercury (49%), Sberbank of Russia (51%)||Cars||Lifan: Lifan Smily, Lifan Solano, Lifan 520, Lifan X60,
Luxgen :Luxgen7 SUV,
Brilliance :Brilliance V5,
Factories of foreign companies
Manufacturers of automobile engines
|Name||Location||Year of foundation||Parent company||Types of engines||Which brands of cars set|
|AvtoVAZ||Togliatti||1966||Alliance Rostec Auto B.V. (joint venture Rostec and Renault-Nissan ;76,25%)||gasoline engines for passenger cars||Lada|
|Kamaz||Naberezhnye Chelny||1969||Rostec (49,9%), Avtoinvest Limited (20,81%), Daimler AG (11%), KAMAZ International Management CO., L.P.(4,25%), European Bank for Reconstruction and Development (4%), Financial and leasing company "KAMAZ" (3,72%), Decodelement Services Limited (2,73%) ;individuals (above 76000)||diesel engines for heavy-duty trucks and large buses||KAMAZ, NefAZ, BTR-80|
|Yaroslavl Motor Plant (YaMZ)||Yaroslavl||1916 (as Autoworks), 1958 (conversion to the production of engines)||GAZ Group||diesel engines for trucks, small buses, large buses, armored vehicles, armored personnel carriers||UralAZ, PAZ (PAZ-3205, PAZ-4234), LiAZ (LiAZ-5256), BTR-80, GAZ Tigr (AMZ Tigr), BAZ, MAZ, KrAZ, MZKT, BelAZ ( younger models with BelAZ-7540-7547 to BelAZ-7547), MoAZ (MoAZ-7505)|
|Ulyanovsk Motor Plant (UMZ)||Ulyanovsk||1944||GAZ Group||gasoline and gasoline-gas engines for light commercial vehicles and SUVs||GAZ (GAZ Gazelle, GAZ Sobol), UAZ (UAZ-3151 military performance )|
|Zavolzhye Motor Plant (ZMZ)||Zavolzhye||1958||UAZ (78%)||petrol and diesel engines for off-road vehicles, light commercial vehicles and small buses||UAZ, PAZ (PAZ-3203, PAZ-3204, PAZ-3205 )|
|ZiL||Moscow||1916||Executive of Moscow||gasoline engines for medium trucks||ZiL (ZiL-4331) ||
|Tutaev Motor Plant (TMZ)||Tutaev||1969||diesel engines for heavy trucks||MZKT (MZKT-742910), BAZ|
|Cummins Kama||Naberezhnye Chelny||2006||a joint venture between Cummins and Kamaz||diesel engines for trucks||Kamaz|
- Research Automobile and Engine Institute (NAMI) .Founded in 1920, located in Moscow. Engaged in the creation of innovative environmentally-friendly transport research, integrated engineering, standardization and certification.Official site
- Research Center for Testing and debugging Motors of FSUE "NAMI" (other names: NITsIAMT of FSUE "NAMI", Avtopoligone of NAMI) .Founded in 1964, located in Dmitrov. Activities: 1) research and testing of prototypes and mass-produced vehicles, systems, structural elements to meet current and future regulatory requirements and develop recommendations to improve their operational properties, 2) certification tests Motors 3) the improvement of existing and development of new test vehicles and requirements for them from the perspective of improving the design ATC 4) the formation and development of research and testing facilities .Is a complex that includes the road with different types of coatings, devices for crash tests, wind tunnel, vibroacoustic camera, an engine test bench, corrosion chamber.Official site
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