And this figure could go down to 80 in 2010

The attractiveness and potential of the Russian market are patents, but have been long hidden by some administrative and regulatory uncertainty. Not to mention the role of certain close groups of pressure of the gas industry to infiltrate in the automotive sector, especially in AvtoVaz.

But the Government of Moscow and auto manufacturers hope that these turbulent part of the past. Because the Russia presents an opportunity for interesting growth in automotive manufacturing. The potential of market feed 140 million plaintiffs people of anything other than local production. It's the Lada produced by AvtoVaz (700,000 units per year) and outgoing Volga in gas at an annual rate of 100,000 cars.

So far, local builders, effectively protected by the regulations, accounted for almost 70 of the Russian market. But this is changing: the firm Roland Berger estimates that 2 million cars will be sold on the Russian market in 2010: 800,000 will come from Russian manufacturers, International Builders in Russia and 600,000 600,000 will be imported. The balance will slightly change in 2014: as cars for local manufacturers, but 200,000 more international. To this end, the Russian market will absorb 2.3 million light vehicles.

Thus, over the next ten years, the production of international manufacturers will be multiplied by six, from 157.000 units in 2005 to more than 800,000 by 2015.

Transformation of the automotive industry

Now, Russian manufacturers must negotiate a turn: the national market is more and more applicant Western vehicles, while on the other hand, exports to Europe becomes more problematic. Pollution control standards and increasing quality requirements reduce the space in which can slide the Lada and the possible Volga. "The Russian automotive industry is on the eve of a major transformation" indicated last year, Jürgen RRSPs, one of the members of the Automotive Competence Center of Roland Berger.

Customs duty lowered for components

So far, one obstacle to the implementation of the manufacturers was the weakness of the local fabric of equipment suppliers. So "to Prime the pump", the Russian Government has eased last year legislation on tariffs for imported components. March 29, 2005, the Russian Government adopted order No. 166 amending customs duties for automotive components to be assembled on site. In this context, a large number of components can be imported without customs duties. These include engines, body parts, chassis, seats, alternators, starters and wheel elements. Some components (locks, mirrors) are subject to reduced rates close to 5. It should be noted that, previously, tariffs on parts were between 10 and 20. The Russian authorities hope will, in a second time, manufacturers ask international OEMs to implement on-site for questions of costs and logistics. Some OEMs are already implanted in Russia and none of them can neglect the market which is promised to one of the highest global growth. A study by Roland Berger points out that from 2004 to 2010, the share of value creation in the automotive sector in Russia to equipment suppliers will increase from 26 to 43. This evolution is based on the growing importance of international manufacturers, but also to a lesser extent, on the phasing out of vertical integration among Russian manufacturers. Roland Berger believe that they presently buy 91 of the value of their purchases in Russia. And this figure could go down to 80 in 2010. Among international builders, the share of value returning to equipment suppliers, currently close to 66, will increase only marginally for up to 70.

What future for Russian suppliers

To achieve both economic referred to above (logistics costs) but also respond to the request of the authorities, the share of local content of international manufacturers would triple in 10 years to 36 in 2014.

Conversely, Russian manufacturers try to accompany the growing demand of the market for quality vehicles. Components exist in 40 of cases and relate primarily to the field of parts for engines and Interior. It is estimated that the part of the components meet European quality standards will represent 37 of the value of the cars produced by Russian manufacturers against 13 in 2005. To do so, Russian suppliers will have to sign agreements of partnership and transfer of technology with international OEMs. Finally, with those who will focus on this path to that of completely autonomous implementation. For the moment, the equipment installed in Russia rely on the fingers of both hands: Bosch, Lear, Delphi, Michelin, SiemensVDO, Johnson Controls, Asahi Glass (Glaverbel) and Tenneco are now pioneers.

The growth of the market and the increase of the volumes purchased from OEMs will blow up the market of automotive equipment in Russia. From 2004 to 2014, this market will increase from EUR 900 million to 5.1 billion.

BOX .

Cooperation agreement between AvtoVaz and Bosch

The constructor AvtoVaz and equipment manufacturer Bosch signed in early June, a technical cooperation agreement covering the period 2006-2010. This agreement provides for cooperation in a series of projects of the manufacturer, including the conformity of the engine emission control standards. The two companies are working on numerous projects: the adaptation of the ABS on AvtoVaz vehicles, the development of new engines 1.4 and 1.6 including. The agreement signed early June will follows one reached in 2001.