OVERVIEW OF THE RUSSIAN AUTOMOTIVE MARKET 2017

1. MITTEL
Market Research & Consulting
OVERVIEW PRESENTATION
FACTS ABOUT RUSSIAN
AUTOMOTIVE MARKET
2017
ACCURACY OF SOLUTIONS

2. PASSENGER CAR MARKET IN RUSSIA, KEY FIGURES (BY 01.01.2017)
2016 2015
Total number of passenger cars 41.6 mln 40.9 mln
Average age 12.9 years 12.5 years
Foreign makes 59% 58%
Above 15 years old 33% 32%
Diesel cars 4.7% 4.5%
Euro-4 or higher 39% 28%
SUV 19% 20%
288 passenger cars per 1000 residents in Russia
ACCURACY OF SOLUTIONS 2

3. PASSENGER CAR MARKET IN RUSSIA, Y2016 (JAN-DEC)
3
TOP 20 Models
Brand Model 2016 sales Y2Y 16/15, %
HYUNDAI Solaris 90 380 -22,00%
LADA Granta 87 726 -27,00%
KIA Rio 87 662 -9,70%
LADA Vesta 55 174 20 times
VW Polo 47 702 5,10%
RENAULT Duster 44 001 0,20%
TOYOTA RAV 4 30 603 12,90%
CHEVROLET Niva 29 844 -4,90%
RENAULT Logan 29 565 -28,40%
LADA Largus 29 341 -24,7%
RENAULT Sandero 28 557 -5,50%
TOYOTA Camry 28 063 -6,90%
LADA 4x4 27 274 -22,8%
SKODA Rapid 25 931 5,60%
HYUNDAI Creta 21 929 new model
SKODA Octavia 21 759 1,80%
LADA Kalina 20 982 -41,50%
LADA XRAY 19 943 new model
UAZ Patriot 19 381 -2,90%
KIA Sportage 19 003 -8,40%
TOP 10 Manufacturers
Automotive group Sales, pcs Y2Y 16/15, % Share %
AVTOVAZ-RENAULT-NISSAN 477 279 -7,9% 33,5%
HYUNDAI-KIA 294 867 -9,2% 20,7%
VW GROUP 156 712 -4,9% 11,0%
TOYOTA GROUP 118 685 0,3% 8,3%
GAZ 55 803 9,0% 3,9%
UAZ 48 848 0,5% 3,4%
MERCEDES-BENZ 43 912 -12,9% 3,1%
FORD 42 528 10,2% 3,0%
GM GROUP 31 737 -53,0% 2,2%
BMW GROUP 28 867 0,1% 2,0%
ACCURACY OF SOLUTIONS

4. Segment Share, % Dynamics Leading brand/model
B 41,4% -8,6% Hyundai Solaris
SUV 38,9% -5,6% Renault Duster
С 8,2% -37,2% Skoda Octavia
D 5,3% -14,3% Toyota Camry
LAV 2,3% -26,4% Lada Largus VP
Е 1,3% -7,8% Mercedes E-Klasse
MPV 0,8% -22,7% Kia Soul
PICKUP 0,7% -21,1% Toyota Hilux
F 0,4% -21,8% Mercedes S-Klasse
A 0,3% -42,5% Daewoo Matiz
Coupe Cabriolet 0,3% -14,3% Mercedes C-Klasse
ACCURACY OF SOLUTIONS
STRUCTURES OF PASSENGER CAR MARKET BY SEGMENTS, Y2016
4

5. 5
COMMERCIAL VEHICLES PARK IN RUSSIA, Y2016 (JAN-DEC)
Average car age – 20 years
Fleet above 15 years old – 65%
Foreign makes – 30%
Owned by legal entities – 54%
Diesel fuel – 65%
Euro-4 or higher – 13%
CV + HCV FLEET = 3.7 mln cars
Brand
Thousands
of pcs
KAMAZ 855.9
GAZ 772.0
ZIL 554.7
MAZ 287.8
URAL 174.0
SAZ 172.7
Volvo 86.1
Man 82.3
Scania 69.7
Mercedes 62.5
TOP 10 brands
ACCURACY OF SOLUTIONS

6. 6
LIGHT COMMERCIAL VEHICLES PARK IN RUSSIA, Y2016 (JAN-DEC)
ACCURACY OF SOLUTIONS
Average car age – 14.4 years
Fleet above 15 years old – 42%
Foreign makes – 37%
Owned by legal entities – 24%
Diesel fuel – 29%
Euro-4 or higher – 21%
LCV FLEET = 4 mln cars
Brand
Thousands
of pcs
GAZ 1 557.5
UAZ 692.3
TOYOTA 273.8
VW 203.1
IZH 181.1
FORD 148.6
MERCEDES 143.2
NISSAN 120.4
HYUNDAI 99.8
FIAT 92.2
TOP 10 brands

7. ACCURACY OF SOLUTIONS
FORECAST OF NEW PASSENGER VEHICLES SALES TILL Y2021 (MLN PCS)
1.40
1.80
2.37
2.74
1.37
1.78
2.48
2.76
2.61
2.34
1.49
1.31
1.41
1.74
1.94
2.07
2.18
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
The forecast is made on the oil price assumption US$55/ barrel (Bloomberg consensus-forecast)
7

8. ACCURACY OF SOLUTIONS
1.2 1.1 1.2
1.5 1.6 1.8 1.8
1.9 2.0 1.9
1.8 1.6
1.5 1.4
2015 2016 2017 2018 2019 2020 2021
Passenger vehicles production volume in Russia, mln pcs Idling production capacities, mln pcs
39%
36%
39%
45%
50%
54% 57%
Capacities utilization, %
3.1 3.1 3.1 3.3 3.3 3.3 3.3
ACCURACY OF SOLUTIONS
FORECAST OF NEW PASSENGER VEHICLES SALES TILL Y2021 (MLN PCS)
8

9.  MITTEL Market Research and Consulting - independent full-cycle ad hoc market research agency located in Moscow, Russia.
Founded in 2006.
 Geographical coverage:
 Across Russia (9 Federal Districts, 90+ cities) – through the network of long-term partners;
 Across Eastern Europe countries (Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan,
Uzbekistan, Latvia, Lithuania, Estonia, Bulgaria, Poland, Turkey etc.).
 Member of international professional associations:
 ESOMAR (since 2006)
 3D Marketing (since 2010)
 Digital Insight Network (since 2015)
 Specialization: marketing and sociological research, analytics and consulting basing on the Client`s objectives.
 Annual turnover: over 1 000 000 USD.
COMPANY OVERVIEW
9ACCURACY OF SOLUTIONS

10. INDUSTRIAL EXPERIENCE
10
Quantitative
studies
Qualitative
studies
Desk research
We
have experience
in the following markets:
Telecommunication Retail
Baby goods
Durables &
Electrical goods
Automotive
Finance & Banking
Healthcare &
Pharmaceutical
FMCG
B2B
sector
HoReCa
ACCURACY OF SOLUTIONS

11. OUR MAIN CLIENTS
11ACCURACY OF SOLUTIONS

12. MITTEL Market Research & Consulting
Russian Federation, 115162, Moscow, 18, Khavskaya str, bld.2
Tel.: +7 495 792 5418 Fax: +7 495 958 6855 E-mail: info@mittel-mgu.ru Web: www.mittel-mgu.ru
• In our team there are more than 30 analysts with experience of conducting surveys and research. An average work experience in leading research
agencies is 8 years.
• We conduct surveys in Moscow using over 200 interviewers.
• We are constantly interacting with our partners in more than 90 cities of Russia, with more than 5000 interviewers.
• More than 30 constant foreign partners help us to conduct research in Europe, North and South America, Asia and in the middle East.
OUR TEAM
Lev Astafiev
Executive director
Head of qualitative research department
E-mail: lev.astafiev@mittel-mgu.ru
Anna Bordovskaya
Head of qualitative research department
E-mail: anna.bordovskaya@mittel-mgu.ru
12