The potential risks of Coronavirus on Russian automotive industry

The potential risks of Coronavirus on Russian automotive industry


 

RusAutoNewsCom.- As reported by Kommersant, despite the fact that Russia has not yet imposed restrictions on the exchange of goods with China, the effects of the coronavirus are already felt in the main industrial sectors. The continuing decline in the prices of oil, gas and key metals brings serious risks to the automotive industry.

The epidemic creates risks for Russia not only as a supplier, but also as an importer. The Russian car industry procures a wide range of components from China. The companies from the industry, which were interviewed by the Ministry of Industry and Commerce on 30 January, were able to state their confidence in the availability of the necessary goods for February only. Kamaz has admitted that in the event of the continuation of the coronavirus epidemic, it may become necessary to reschedule the production plans from March onwards. As explained by the company, the majority of components, regardless of the country of origin, include elements manufactured in China and moreover, the country has the monopoly in the production of certain parts. An operational response headquarter has already been established at Kamaz, which will adjust the model range, conduct preventative work with suppliers and look for alternatives, if necessary.

Other car manufacturers are not taking the situation with coronavirus so seriously for the moment. UAZ will resume production on 10 February and Sollers have stated that no risks are perceived for February. GAZ Group is currently analysing the situation. Although only some of the suppliers of Avtovaz procure components from Chinese plants at a small extent and the manufacturer currently has the necessary supplies, preparations are being made at the company for various scenarios. The production circumstances are stable at Toyota, which purchases a part of components from China. Renault, on the other hand, has the necessary supply of parts, sufficient for uninterrupted operation in the forthcoming period. Nissan is currently evaluating the risks. Avtotor does not use Chinese supplies. Chinese carmakers operating in the Russian Federation have not reported any problems as yet.

The head of the Autocomponent Manufacturers Committee AEB Andrei Kossov is of the opinion that the Russian automotive industry is not under an imminent threat yet. According to Kossov, the sooner the manufacturers find alternative suppliers for high-tech and complex components, the sooner the complications created by the coronavirus will be solved. As noted by an expert, Russian production was not harmed in the past by similar restrictions on the supply of goods, such as from Turkey and due to the earthquake in Japan.