On July 13, 2016 ASM-holding held the 9-th Moscow international forum “Autocomponents 2016”. The forum participants – market experts and analysts – discussed the prospects for automotive components production, and its localization in Russia, with the aim of developing proposals for an updated development strategy of automotive industry up to 2025.
Auto components – i.e. components and spare parts of vehicles market, depend on the manufacture of new vehicles and vehicles park in the the whole. In the production of cars operate the concept of localization, since vehicle assembly can use both Russian and imported parts. The more details of Russian production – the higher the degree of localization. The government has provided incentives to manufacturers within the framework of “Agreements on industrial Assembly”, which was regulated by the degree of localization (up to 2018 target was to reach about 60%).
Alexander Kovrigin (ASM-holding) talked abouts errors of the previous strategy and came to the basic conclusion: “it is necessary to gradually close the market of automotive components… in two years”. The analysis was used in comparison of the situation of the market since Soviet times and other countries.
The lack of strict regulatory requirements of localization has led to the fact that over 7 years Russia reached the share of 30% localization, which is not sufficient for the development of the automotive industry and worthed the loss of personnel, the backlog of the country in technology and the destruction of the Russian production of automotive components.
“In creating the “Assembly” $100 billion leave the country annually, while Germany receives $100 billion”, – concluded A. S. Kovrigin. According to experts of the market, “at least half of the components is necessary to produce here”.
As for future agreements on industrial Assembly, it can be either 100% Russian company or joint venture from 50% -50% distribution. A. S. Kovrigin believes that the development of new Strategies should base on the Chinese and Indian ways.
Another reputable expert of the market of automotive components, Mikhail Blokhin (NAPAC) – offers an alternate path involves a change of approach to management system market, taking into account international practice.
So, he drew attention to the fact that for 100 years the number of components in the car has increased by 100 PCs – while Russian component market structure has not changed. “It is impossible not to change the management model,” he says.
The Russian system has not previously been assumed on independent producers, they worked on the needs of the three factories. “There was “subsistence farming”. It does not allow to produce products and to develop technology,” he concluded.
V. Blokhin calls attention to the Chinese auto industry, and believes that Russia lagged behind China by about 20 years. At the same time, “Russia has a chance to become a highly production,” he says.
In the worldwide structure of distribution of responsibility for R&D in auto market, automotive components lead (60% development). In Russia they occupy only 30%. In this regard, almost all developments are implemented by foreign companies. Expert proposes to change this structure in favor of national production so that the development of modules and platforms was done with Russian participation, and the components of the other levels should be made by Russian producers.
Today autocomponent market in Russia is more than $100 billion.
According to the trade Ministry today, the volume of automobile production in Russia is ranked 14th in the world by volume. In 2016, the capacity of manufacturers was 30-40%. Despite the challenges, the automotive market stabilized at the expense of support of secondary market. Today, the supply of components for new cars takes 35% of the market, and used cars it is 65%.
Program of state support to stimulate vehicle demand already contributed to the 322’783 vehicles sales from 01 Jan to 03 Jul 2016. In 2016, such sales are expected to amount to 500’000 pieces.
The main funding components market government goes through the Industry development Fund.
