Russia Autos Report Q3 2011: New research report available at Fast Market Research

New Transportation research report from Business Monitor International is now available from Fast Market Research
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* Vehicle
* Avtovaz
* Russian
* Izhavto
* Carmaker
* Putin
* Comprising
* Motor
* Kia
* Scrappage

* Transportation
* Automotive
* Shipping

* Massachusetts - US

June 24, 2011 - PRLog -- BMI view that the Russian autos market is likely to see a quick recovery - on the back of an anticipated increase in government spending ahead of the parliamentary and presidential elections in 2011 and 2012 respectively - is playing out. In the beginning of April 2011, Russian Prime Minister Vladimir Putin's announced plans to spend an extra RUB5bn (US$177.1mn) to continue the car scrappage scheme for the rest of 2011. Meanwhile, with the country's new light vehicle sales growing 77% year-on-year (y-o-y), to 517,304 units, in Q111 (according to the Association of European Businesses estimates), we believe our end of year forecast of 2.26mn sales remains firmly on the cards.

In the medium to longer term, the country's low vehicle ownership rate (at just 239 cars per thousand people in 2010), coupled with the potential for the economy to grow at an average of nearly 4.5% y-o-y between 2012 and 2015, creates favourable conditions for new vehicle sales growth.

Full Report Details at

While this growth will lure in new autos investment, BMI had raised concerned that too much of investments could create problems of overcapacity in the country. While all these investments fall in line with the government's plans to boost automotive manufacturing and employment in the country, the government regulation could force prompt some carmakers to invest in way more capacity than required. BMI is already skeptical about Fiat's plans to spend EUR1.6bn (US$2.3bn) towards undertaking largescale production of 300,000 cars a year in Russia, given that Fiat has a less than 5% market share in the market.

According to local reports, around 12% of companies operating in Russia believe that overcapacity problems are already beginning to surface, while nearly a fifth argue the country may face overcapacity problems in the next two years. Based on the existing investments and the level of vehicle demand, BMI forecasts Russian production to reach 3.66mn units in 2011 - more than three times the level in 2009.

Meanwhile, the local carmakers have already begun looking at overseas markets, mostly through tie-ups with foreign companies. Russian truck maker KAMAZ is looking to acquire a controlling majority or a 100% stake in Belarusian counterpart MAZ while GAZ and RusAvtoProm are to jointly assemble PAZ buses in Belarus this year, with the view to gaining access to the wider CIS market.

The all-round optimism in the Russian autos segment and the government's intent on improving the sector have move the market to the first position of BMI's Risk-Reward ratings for the autos industry in Europe, overtaking the UK and Germany.

Report Table of Contents:

SWOT Analysis
- Russia Auto Industry SWOT
- Political SWOT Analysis
- Economic SWOT Analysis
- Business Environment SWOT Analysis
Global Overview
- BMI's Core Views For The Automotives Industry
Regional Overview
- EU Visualises An Oil-Free Future, But Will The Industry Accept It?
- Table: EU Action Plan For Electric Vehicles
- Table: Europe - Top Automotive Suppliers Sales By Region (US$mn) 2010
Business Environment Analysis
- Table: BMI Industry Risk-Reward Ratings For Autos In Europe
Macroeconomic Forecast
- Table: Russia - Economic Activity
Industry Forecast Scenario
- Domestic Sales
- Table: Russia Autos Sales: Historical data and Forecast
- Rural-Urban Divergence
- Production
- Table: Russia Autos Production: Historical Data and Forecasts
- Trade
- Table: Russia Autos Trade: Historical Data and Forecasts
- Industry Developments
- An outline of the government's policy towards new OEMs as of April 2011
- Table: Major Planned Automotive Investments In Russia*
Passenger Cars
- Table: Russia Passenger Car Segment: Historical data and Forecast
- Table: Russia - Current And Planned Investment By Foreign Automakers
- Company Developments
- Commercial Vehicles
- Table: Russia Commercial Vehicle Segment: Historical data and Forecast
- Industry News
- Company News
- Table: New Truck Imports By Brand
- Table: Major And Developing Automotive Clusters In Russia
- Competing Tyres
Company Monitor
Company Profiles
- AvtoVaz
- Sollers
- Taganrog Automobile Plant
- Ford Motor
- General Motors Company (GM)
Country Snapshot: Russia Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Wages, 2000-2006
BMI Methodology
- How We Generate Our Industry Forecasts
- Sources

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at

About Fast Market Research

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For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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Tags:Vehicle, Avtovaz, Russian, Izhavto, Carmaker, Putin, Comprising, Motor, Kia, Scrappage
Industry:Transportation, Automotive, Shipping
Location:Massachusetts - United States
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