tida - automobile industry (long)
TRANSCRIPT
Machinery & automotive parts production
• Russian consumers have more spending power than ever before; emerging middle class
Growing consumer demand
8,970 10,030 11,560
14,500 16,350
19,850 18,600 19,600 21,210
2003 2004 2005 2006 2007 2008 2009 2010 2011
GNI per capita, PPP (current USD)
World Development Indicators
0.00 10.00 20.00 30.00 40.00
2000 2005 2007 2008 2009 2010 2011
Actual Household Consum1on (trillion RUB)
• 7th largest passenger vehicle market in world
• 5% — annual forecast growth for light vehicle sales from 2013-2016 – 2.94 mln units in 2012
• Vehicle sales in Russia will surpass Germany by 2014 2.90
1.47 1.90
2.65 2.94 3.03 3.18 3.40 3.60
2008
2009
2010
2011
2012
2013
2014
2015
2016
New light vehicle sales in Russia (million of units)
AUTOSTAT analytic agency, AEB, LMC Automotive, IHS Global Insight, open sources, Ernst & Young Estimates
63
30
42
65 75
2008 2009 2010 2011 2012
Light Vehicle Market (bln USD)
AEB, Price N, Ernst & Young Estimates
Russia’s Automotive Market Potential
• Low vehicle density – 260 vehicles per 1000 people in Russia
(641 and 532 in the U.S. and Germany respectively)
• Aged light vehicle fleet – Average age: 11.8 years – Russian brands: 14.8 years – Average age in Europe: 7 years
Russia’s Automotive Market Potential
• 2012: 23% increase in production of foreign brand light vehicles produced in Russia
Increasing Popularity of Foreign Brands
ASM Holding, Ernst & Young estimates
Light Vehicle Market Breakdown by origin (%)
34 40 45
34 25 21
32 35 35
2010 2011 2012
Import of new foreign brands
Russian Brands
Russian-made foreign brands
• Component market continues to grow along with automotive market
Component Market Growth
AUTOSTAT analytic agency, Ernst & Young estimates
11
4.4
11.4
18.2 20.6
16.8
15.4
17.8
20.5 21.2
2008 2009 2010 2011 2012
Aftermarket
OE market
Automotive Component Market (bln USD)
• The Eurasian Customs Union (2010) eliminates tariffs and customs processing on the borders of Russia, Belarus, and Kazakhstan.
• Potential for Customs Union expansion (Tajikistan, Kyrgyzstan, Ukraine).
• Automotive sales are growing rapidly in Kazakhstan and Belarus. • Imports dominate these markets, vehicles produced in Russia
receive preferential treatment. Light Vehicle Sales in Belarus and Kazakhstan (volume)
Light Vehicle Production in Belarus and Kazakhstan (volume)
Duty-free access to > 226 million consumers
• WTO membership ensures greater market access for Russian exports and guarantees stable, rule-based trade relationships
• Russia is currently negotiating a free trade agreement with the European Union
• Russia currently has bi-lateral free trade agreements with Armenia, Georgia, Kyrgyzstan, and the Ukraine
Russia is joining the world economy
Why aren’t you investing in Tatarstan? Tatarstan Investment Development Agency 50 Peterburgskaya St. Kazan, Tatarstan, Russia 420107 Tel/Fax: +7 (843) 570-‐40-‐01 Email: [email protected] Website: Rda.tatarstan.ru TwiUer: @InvestTatarstan Tatarstan Development CorporaRon 50 Peterburgskaya St. Kazan, Tatarstan, Russia 420107 Tel/Fax: +7 (843) 227-‐42-‐24 Email: [email protected] Tatarstan Export CorporaRon 35/2 Pravo-‐Bulachnaya St. Kazan, Tatarstan, Russia 420111 Tel: +7 (843) 292-‐87-‐76 Email: [email protected]