The U.S. and Foreign Commercial Service (FCS) is leading an automotive selling mission to Russia April 23-28, 2012, and there is still time for American companies to apply for inclusion. The deadline to apply is January 20, 2012. For more information, go to: www.export.gov/trademissions/russianauto. The FCS is looking to include as many as 20 companies.

Eduard Roytberg, the FCS officer organizing the trip (he can be reached at [email protected]) says the trip will be led by the U.S. Department of Commerce’s Deputy Under Secretary for International Trade and with the full support of the U.S. Ambassador. "We will be visiting three cities and three automotive assembly clusters in Russia," explains Roytberg. "The itinerary will feature one-on-one meetings with potential business partners, site visits to automotive assembly plants and component manufacturers, and opportunities to meet high-level Russian Government officials and industry experts."

Demand for new cars and auto parts is booming in Russia. Sales of cars and trucks in
are currently growing at an annual rate of 30 percent. Importers forecast continued rapid growth of approximately 20 percent in 2011. If these trends continue, most experts project Russia will be the largest automotive market in Europe in the next few years.

There are obvious opportunities in Russia for all segments of the U.S. automotive industry, including aftermarket retailers. Alexander Kansky is the Commercial Specialist for the FCS stationed in St. Petersburg. "My opinion about aftermarket opportunities in Russia for U.S. suppliers is rather positive," he says. "However, to become successful in the market the suppliers must be committed to invest in marketing, brand building and promotion, since the Russian automotive aftermarket is quite competitive and existing distributors are reluctant to invest in new brands."

The even better news, however, is that for a company willing to develop a regional or national retail network, there is no competition at the moment from any Russian company. "There are no country-wide aftermarket retail chains in Russia, that is why there are no market leaders, and this fact also opens an opportunity for U.S. aftermarket retailers who would be interested in developing such chains in Russia," Kansky explains.

There are lots of opportunities for OEM parts suppliers, too, including aftermarket sales. U.S. auto manufacturers General Motors and Ford have built plants in St. Petersburg (2008/2002 respectively). Nissan, Toyota and Hyundai opened new plants in St. Petersburg or in Leningrad
between 2007 and 2009.

Numerous, well-known, non-Russian parts suppliers are already active in Russia. Bosch, with its Russian joint venture partner, supplies 82 percent of the Russian ignition plug market from its 30 million--unit capacity plant in Saratov. Lear manufactures car seats in a facility within GAZ's plant in Nizhny Novgorod. Outside of that town, Ingersoll Rand makes power tools and steering columns. Delphi produces wire harnesses at its plant in Samara, while in St. Petersburg Johnson Controls and Tenneco make, respectively, car seats and exhaust systems.

Company executives participating in the trip will have to pay a fee of $4,952 for small or medium-sized enterprises (SME) and $5,701 for large companies. That would cover one person. The fee for each additional firm representative (large firm or SME) is $1,220. The participation fee covers all in-country travel--airport transfers and bus transportation to/from group meetings and site visits, train fare from Moscow to St. Petersburg, airfare from St. Petersburg to Samara and from Samara back to Moscow, as well as one-on-one meetings with potential Russian business partners. The Commercial Service will assist in booking hotels at favorable rates, but lodging costs, meals and incidental expenses will be the responsibility of each mission participant.

The U.S. and Foreign Commercial Service (FCS) is leading an automotive selling mission to Russia April 23-28, 2012, and there is still time for American companies to apply for inclusion. The deadline to apply is January 20, 2012. For more information, go to: www.export.gov/trademissions/russianauto. The FCS is looking to include as many as 20 companies.

Eduard Roytberg, the FCS officer organizing the trip (he can be reached at [email protected]) says the trip will be led by the U.S. Department of Commerce’s Deputy Under Secretary for International Trade and with the full support of the U.S. Ambassador. "We will be visiting three cities and three automotive assembly clusters in Russia," explains Roytberg. "The itinerary will feature one-on-one meetings with potential business partners, site visits to automotive assembly plants and component manufacturers, and opportunities to meet high-level Russian Government officials and industry experts."

Demand for new cars and auto parts is booming in Russia. Sales of cars and trucks in
are currently growing at an annual rate of 30 percent. Importers forecast continued rapid growth of approximately 20 percent in 2011. If these trends continue, most experts project Russia will be the largest automotive market in Europe in the next few years.

There are obvious opportunities in Russia for all segments of the U.S. automotive industry, including aftermarket retailers. Alexander Kansky is the Commercial Specialist for the FCS stationed in St. Petersburg. "My opinion about aftermarket opportunities in Russia for U.S. suppliers is rather positive," he says. "However, to become successful in the market the suppliers must be committed to invest in marketing, brand building and promotion, since the Russian automotive aftermarket is quite competitive and existing distributors are reluctant to invest in new brands."

The even better news, however, is that for a company willing to develop a regional or national retail network, there is no competition at the moment from any Russian company. "There are no country-wide aftermarket retail chains in Russia, that is why there are no market leaders, and this fact also opens an opportunity for U.S. aftermarket retailers who would be interested in developing such chains in Russia," Kansky explains.

There are lots of opportunities for OEM parts suppliers, too, including aftermarket sales. U.S. auto manufacturers General Motors and Ford have built plants in St. Petersburg (2008/2002 respectively). Nissan, Toyota and Hyundai opened new plants in St. Petersburg or in Leningrad
between 2007 and 2009.

Numerous, well-known, non-Russian parts suppliers are already active in Russia. Bosch, with its Russian joint venture partner, supplies 82 percent of the Russian ignition plug market from its 30 million--unit capacity plant in Saratov. Lear manufactures car seats in a facility within GAZ's plant in Nizhny Novgorod. Outside of that town, Ingersoll Rand makes power tools and steering columns. Delphi produces wire harnesses at its plant in Samara, while in St. Petersburg Johnson Controls and Tenneco make, respectively, car seats and exhaust systems.

Company executives participating in the trip will have to pay a fee of $4,952 for small or medium-sized enterprises (SME) and $5,701 for large companies. That would cover one person. The fee for each additional firm representative (large firm or SME) is $1,220. The participation fee covers all in-country travel--airport transfers and bus transportation to/from group meetings and site visits, train fare from Moscow to St. Petersburg, airfare from St. Petersburg to Samara and from Samara back to Moscow, as well as one-on-one meetings with potential Russian business partners. The Commercial Service will assist in booking hotels at favorable rates, but lodging costs, meals and incidental expenses will be the responsibility of each mission participant.