Russian Announcement Requires A Quick Reaction From Vehicle Manufacturers

Sept. 3, 2008 - PRLog -- Moscow – Security test spotlights vehicle manufacturers

11 of the highest theft risk foreign cars in Russia were tested for security performance by Thatcham (the UK Insurance Industry funded test house) in July 2008 on behalf of the ‘Professional Association for the Risk Prevention’ (PARP).  The results were announced at a press conference on the 2nd September at the Moscow International Auto Salon.

Speaking from the Auto Salon, David Bell, Managing Director of SBD, commented that “the results of the Thatcham conducted security test show a large difference between the performance of the Russian cars and their UK counterparts. Those vehicle manufacturers under the spotlight in this initial testing phase are all well aware of UK Thatcham requirements for security. By adopting the Thatcham criteria, the Russian insurers believe that it should be relatively straightforward to adapt specifications for the Russian market.
“However, SBD believe that there is a big obstacle to overcome in converting the mindset of insurers into giving incentives for vehicle manufacturers and consumers – this will be one of the key dynamics over the coming years as the Russian market continues to grow so rapidly”.

Thefts of vehicles in Russia have tripled since 1995

Although vehicle theft in Europe has been reducing significantly, the story in Russia is completely different. There were in excess of 123,000 thefts reported in 2006; this represents a 300% increase from 1995. The increasing number of Russians who choose to insure their vehicle against theft can now pay 15-20% of the list price of the vehicle per year and are often required to install further security systems.

Vehicle Manufacturers must protect their brand image

SBD’s report entitled “Car theft and insurance in Russia – Thatcham shaping the future” is the timeliest assessment of the status of the PARP star ratings for imported vehicles and gives an independent evaluation of the impact of this initiative on the automotive industry.

“It will be interesting to see how the Russian public and the government react to the test results but they will put increasing pressure on vehicle manufacturers to adopt UK levels of security to ensure that the ever increasing number of customers in Russia can benefit from reduced cost of insurance. Provided they act quickly, vehicle manufacturers can ensure that their sales aren’t jeopardised and brand image is protected.” said David Bell.  

This report describes the market and insurance situation in Russia and provides a summary of the 11 car test results together with analysis and recommendations for vehicle manufacturers who are looking to expand their car sales in the Russian market.  Star rating results announced at the Moscow International Auto Salon are available for download at http://www.sbd.co.uk/assets/2172_-_Car_theft_and_insuranc...

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SBD, an independent company, providing specialist consultancy services to the automotive industry worldwide & provides its customers with technical & market information in the areas of:

Vehicle Security & Cost Of Ownership
Vehicle Telematics & ITS