China's car companies enter the Russian accessories business opportunity
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Russia's auto market sales list shows that there are already 12 China's own brand cars on the list, next year will have other independent auto companies landed in the Russian auto market, Russia has once again become its own brand car cloud hot set auto market. With so many vehicle companies entering Russia, it is inevitable that supporting spare parts companies will follow suit accordingly.
The reality is that China's auto parts companies entering the Russian auto market are far more than whole vehicle companies. Two-thirds of the booths at the Russian “International Spare Parts Fair†are Chinese enterprises. It is well-known that parts and suppliers are unevenly distributed and Russian consumers are concerned about China’s production. Parts evaluation is mixed. And now, the change is coming.
It is necessary to regulate China's spare parts manufacturers in Russia, and industry self-regulation has allowed it to enter a sound development track. However, this requires the market to adjust itself. There is no organization or organization that can constrain the behavior of many companies. Therefore, Russia’s China’s spare parts industry is completely superior to the survival of the fittest, and competition is far more fierce than the entire vehicle company.
China's spare parts enterprises can not only support Russia's own auto companies, but also can vigorously develop cooperation with Russian auto companies. Yesterday, Russia reported that Volga, the largest light-vehicle manufacturer in Russia (producing the Lada brand car), intends to conduct in-depth cooperation with China's spare parts industry, but the details and timing of the specific negotiations have not been disclosed.
Following the Renault-Nissan holding Volga, it has become a top priority in its efforts to upgrade and transform Lada and reduce costs and reduce expenditures. Since the beginning of the year, Lada has been seeking its accessories supplier to reduce the price by 5%. Volga will open up its spare parts supply to China's spare parts traders, attracting a full range of investment, including electronic and electrical, transmission, suspension components, engine components, aluminum alloy wheels, seats and bearings and other auto parts.
One of the Volga’s shareholders, the chairman of Russia’s state-owned “Russian Technology†company, Chemezov, told Russia’s ITTA recently that Volga intends to intensify its cooperation with China’s spare parts manufacturing companies and create joint ventures.
At present, the Volga Togliatti factory in China purchases tires, engine components and other spare parts. Volga's official statement does have an intention to cooperate with Chinese spare parts companies, but it has not yet entered the substantive negotiation stage.
Volda executive general manager Udanov commented that: “The parts mentioned by Chemezov have already been produced in Russia, and Volga prefers to reach an agreement with the parts and components supplier in the local area to reduce the cost of purchasing parts and components. ".
The long-term decline in sales of Lada, and the reduction in the purchase price of spare parts, is one of the strategic decisions made by Lada. The policy maker is Lada Chairman Swedish Andersen. Last year, Lada lost a total of 8 billion rubles, and this year, Anderson plans to turn a profit.
Just this year's actual situation in the Russian auto market, Anderson is difficult to achieve the goal. In August of this year, the sales volume of the Russian auto market fell by 25.8% year-on-year and sold 172.015 vehicles. In the first eight months, a total of 1.582.713 vehicles were sold, a year-on-year decrease of 12.1%.
China's self-owned brand cars are in poor condition. Lifan, Geely and Chery, the four independent brands in the first camp, all suffered a drop in sales. Among them, Geely suffered the heaviest drop. In August, it sold only 1,226 cars, which was a 56% year-on-year drop. . Chery fell 33% and sold 1,077 cars. Lifan slumped 28% and sold 1901 cars, but it retained its position as the No. 1 seller of its own-brand car in the Russian auto market.
Sales of the Great Wall rose slightly by 5% in August and sold 1,292 cars, which was due to the low sales base in the same period last year. From January to August, the Great Wall sold 20% less than the same period of last year and sold 10.695 vehicles. Sales of the four major autonomous eight months in Russia fell without exception. Sales volume of Geely, Lifan and Chery fell by 31%, 17% and 13% respectively year-on-year, with 11.897, 13.912 and 11.446 vehicles sold. Other newly-autonomous brand cars have low sales and are skipped here.
In order to deepen the development of the Russian auto market and get rid of the current sluggish sales status, there have been independent car companies starting to build large-scale assembly plants in Russia, which also provides good development opportunities for China's spare parts manufacturing industry.
Lada's current parts suppliers believe that the joint venture between Lada and Chinese spare parts companies will not pose a threat to them. Because the Russian car market sales continued to decline, Chinese parts suppliers are not eager to invest heavily in the Russian auto market, only limited sales of spare parts.
Yapp and Fuyao, two large-scale parts suppliers, currently have factories in Russia. Their supporting vehicle companies obviously cover most multinational car companies, which is similar to their domestic models. Yap and Fuyao set up factories in Russia, aiming at the entire European automobile market.
Lada announced that it has established a joint venture with China's spare parts enterprises to release information. It is clear that it is tapping its parts suppliers to achieve the goal of reducing the purchase price of spare parts. Another layer of meaning, with a clear political implication, is that the current political relations between Russia and the West have deteriorated, and mutual economic sanctions have forced Russia to move closer to the East and it has become necessary to strengthen economic and trade cooperation with China in all aspects. Based on this, China's vehicle companies and spare parts enterprises will open up the Russian auto market, opportunities will emerge, and the long-term window of the layout will open.
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