The share of foreign brands in Russian automotive has fallen for the first time since the year 2000
Vedomosti – According to the prediction published by Autostat, the share of foreign brand automobiles manufactured in Russia in total production will decline for the first time since the year 2000. The agency anticipates a four points decline to 71.5%. According to ASM-Holding -another agency which keeps production statistics in Russia- data, the share of foreign brand vehicles in total production has shrunk by 5.6 points within the first nine months of the year, to 70%.
ASM-Holding data highlights the Avtotor factory, established in Kaliningrad, as the plant where the highest production decline has been observed, with 56.6%. The shrinkage level in production at Vsevolozhsk and Elabuga plants of Ford Sollers is 50%. In contrast, foreign brand vehicle production has increased at Tolyatti and Izhevsk plants of AVTOVAZ, by 36.4%. As is known, contract production is being made in these factories, for the Renault-Nissan alliance.
The increase in market shares of Russian brands such as: Lada and UAZ is the reason behind the relative shrinkage observed in the production of foreign brand vehicles. The shares of the two brands have risen by 1 point each, to 16.9% and 2.9%, respectively.
The Russian brands feel the advantages of high localisation rates over their foreign competitors such as: less damage due to the devaluation of the ruble and less pressure to increase prices.
The sectoral analysts predict that the decline in the share of foreign brands in total production will continue in 2016.
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