TIDA - Automobile Industry (long)

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TIDA - Automobile Industry (long)

  1. 1. Machinery & automotive parts production
  2. 2. •  Russian consumers have more spending power than ever before; emerging middle class     Growing consumer demand 8,970 10,030 11,560 14,500 16,350 19,850 18,600 19,600 21,210 2003 2004 2005 2006 2007 2008 2009 2010 2011 GNI per capita, PPP (current USD) World Development Indicators  
  3. 3. •  7th largest passenger vehicle market in world •  5% — annual forecast growth for light vehicle sales from 2013-2016 –  2.94 mln units in 2012 •  Vehicle sales in Russia will surpass Germany by 2014 63 30 42 65 75 2008 2009 2010 2011 2012 Light Vehicle Market (bln USD) AEB, Price N, Ernst & Young Estimates   Russia’s Automotive Market Potential
  4. 4. •  Low vehicle density –  260 vehicles per 1000 people in Russia (641 and 532 in the U.S. and Germany respectively) •  Aged light vehicle fleet –  Average age: 11.8 years –  Russian brands: 14.8 years –  Average age in Europe: 7 years Russia’s Automotive Market Potential
  5. 5. •  2012: 23% increase in production of foreign brand light vehicles produced in Russia Increasing Popularity of Foreign Brands ASM Holding, Ernst & Young estimates   Light Vehicle Market Breakdown by origin (%)   34 40 45 34 25 21 32 35 35 2010 2011 2012 Import of new foreign brands Russian Brands Russian-made foreign brands
  6. 6. •  Component market continues to grow along with automotive market Component Market Growth AUTOSTAT analytic agency, Ernst & Young estimates   11 4.4 11.4 18.2 20.6 16.8 15.4 17.8 20.5 21.2 2008 2009 2010 2011 2012 Aftermarket OE market Automotive Component Market (bln USD)  
  7. 7. •  The Eurasian Customs Union (2010) eliminates tariffs and customs processing on the borders of Russia, Belarus, and Kazakhstan. •  Potential for Customs Union expansion (Tajikistan, Kyrgyzstan, Ukraine). •  Automotive sales are growing rapidly in Kazakhstan and Belarus. •  Imports dominate these markets, vehicles produced in Russia receive preferential treatment. Light Vehicle Sales in Belarus and Kazakhstan (volume)     Light Vehicle Production in Belarus and Kazakhstan (volume)     Duty-free access to > 226 million consumers
  8. 8. •  WTO membership ensures greater market access for Russian exports and guarantees stable, rule-based trade relationships •  Russia is currently negotiating a free trade agreement with the European Union •  Russia currently has bi-lateral free trade agreements with Armenia, Georgia, Kyrgyzstan, and the Ukraine Russia is joining the world economy
  9. 9. Why aren’t you investing in Tatarstan?   Tatarstan  Investment  Development  Agency   50  Peterburgskaya  St.   Kazan,  Tatarstan,  Russia  420107   Tel/Fax:  +7  (843)  570-­‐40-­‐01   Email:  invest@tatar.ru   Website:  Rda.tatarstan.ru   TwiUer:  @InvestTatarstan     Tatarstan  Development  CorporaRon   50  Peterburgskaya  St.   Kazan,  Tatarstan,  Russia  420107   Tel/Fax:  +7  (843)  227-­‐42-­‐24   Email:  invest@tatar.ru     Tatarstan  Export  CorporaRon   35/2  Pravo-­‐Bulachnaya  St.   Kazan,  Tatarstan,  Russia  420111   Tel:  +7  (843)  292-­‐87-­‐76   Email:  export@tatar.ru    

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