Moscow - The big freeze in Russia’s car market may just have started thawing. Domestic vehicle sales rose late last year for the first time in almost two years with further growth during the first quarter of 2017 after a 9.4% surge year-on-year in March, according to the Association of European Businesses. It’s beginning to look like predictions of a 7% rise in sales of new cars during 2017 made late last year by Alexey Volodin, head of the automotive industry and railroad transport department at Russia’s Ministry of Industry and Trade, could just be right. Volodin also predicted domestic demand would rise to as much as 3m units by 2025.
With production capacity in Russia currently totalling just over this amount (3.3m units), it is no surprise OEMs are now beginning to invest in new facilities in the region to position themselves for the coming growth.They include Daimler, which recently announced plans to invest more than €250m ($263m) to begin manufacturing Mercedes-Benz cars from 2019 at the Esipovo Industrial Park, about 40km north-west of Moscow: “After the drastic contraction of recent years, the Russian car market should recover in 2017,” was how the OEM explained the move, adding: “Starting from a very low level, significant recovery of demand is to be expected in Russia.” That recovery will be at the heart of discussions at this year’s Automotive Logistics Russia summit. At the event, leading OEMs, service providers, infrastructure operators and technology solutions suppliers will all come together to debate the best strategies for automotive supply chains to adopt, now that the Russian market appears to be getting back on track.
Automotive Logistics Russia takes place at the Renaissance Monarch Hotel in Moscow on July 5th, and will provide insight and analysis from some of the Russian automotive sector’s leading figures, as they consider the state of today’s industry and outline how they would like to see it position itself for the challenges and opportunities ahead.