European Plastics News — Total investments in auto parts
production in Russia is expected to reach$5.5 billion by 2020,
according to a recent forecast from the Russian Ministry of
Industry and Trade.
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According to Alex Rakhmanov, deputy head of the Ministry, up to
150 auto production plants are expected to be established in Russia in the
coming years, most of which will be built on foreign
investments.
According to Rakhmanov, the average payback period of these
projects is expected to be in the range of 4-7 years, whereas
the volume of investments will range from $10 - $100
million.
In 2011 the Russian market of auto parts reached $41 billion in
value terms. In the short term, the market is expected to grow
by 20-30 percent per year, mainly due to an increase of local
auto production and local autofleet. So far, the majority of
auto parts have been supplied to Russia from abroad but in
recent years the share of locally made auto parts has
significantly increased.
However, local auto parts producers (total number is currently
estimated at 2000) are still unable to compete with foreigners
so mainly specialize in the production of low-tech products and
parts.
Experts estimate that Russia's technological level in auto
parts’ production lags behind their foreign counterparts by 30
-40 years. The quality of Russian products remains low. In
Europe, the average number of claims is about 0.002 per 1,000
cars, while in Russia this figure is estimated at 0.6.
