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Car Market Russia – Guaranteed Growth


ABH Marketingservice presents the current study
'The Car Market in Russia'


Cologne, January 2009
 
Are there any car markets left that still offer certain and guaranteed growth?
 
"Yes," says Gerd Heinemann, the author responsible for an up-to-date market study about the Russian automobile market. “Even though a negative scenario is predicted, it will still result in moderate growth in the Russian market."
 
Although Russia has not replaced Germany as the country with the highest number of new car registrations in Europe, it will achieve a new record for new registrations,  despite the massive decline in the last quarter of 2008.
 
Definite growth potential for the aftermarket
 
The Russian aftermarket for car parts, car chemicals, accessories and tyres offers a huge potential for all car makers, parts manufacturers and car dealers. The 29 million cars currently on the roads in Russia, for example, generate an aftermarket potential amounting to almost €7 billion.
 
According to ABH this potential is certain to grow, as the peak years for new registrations and imports of used cars of the recent past are now coming into the aftermarket. ABH estimates a yearly increase in volume of around ten percent, solely from the stock of cars  already on the roads.
 
However, the volumes in the aftermarket are still limited, as one in two cars on the roads in Russia is older than ten years and more than one in three is older than fifteen years. A look at the brand names out there on the roads also shows the limited potential for western European parts suppliers, as nearly 70 percent of the vehicles stem from Russian production.
   
Complex structures
 
Entry to the Russian market continues to present a challenge, because Russian politics protects local companies from new competition. New entrants must accept existing structures and position themselves within them.
 
After very intensive and not always straightforward research, ABH market researchers have succeeded in selecting the most important car manufacturers and car parts manufacturers in Russia. Among them are real giants like the Rolf Company at the car dealer level, who according to current publications is selling nearly 140,000 new cars per year.
Structures are developing at the parts dealer level as well. Hence, the European co-operations AD, GAU and ATR are already widely represented and Temot International has just gained EXIST, the parts dealer, as a partner.

Should you have any further questions on the survey, contact:
 
ABH Marketingservice GmbH
Gerd Heinemann
Frank Drews
Weißhausstr. 23 a
D-50939 Cologne
www.abh.de
 
Tel.:        +49 (0) 221 / 944004-42
Fax.:       +49 (0) 221 / 944004-90
e-mail:     FDrews@abh.de