31.03.2015 / Automakers may count on additional state order

Russian Automotive Market Research

The Prime Minister of the Russian Federation signed a decree on the allocation of additional budget provisions for the purchase of vehicles for state needs in order to stabilize the situation in the Russian automotive industry and ensure stability in the industry in 2015. For this purpose, in accordance with the anti-crisis plan of the government, more than 10 billion rubles will be allocated from the federal budget. These funds will be used for the purchase of about 5711 vehicles to renew the vehicle park for state needs, which, as the government expects, will provide additional orders to Russian organizations in the automotive and related industries.

30.03.2015 / Transfer to Euro-5 engines may be delayed

Russian Automotive Market Research

Russian automakers ask to postpone the transfer to Euro-5 engines, which all vehicles produced on the territory of the Customs Union shall meet beginning January 1, 2016. This offer is explained by the difficult market situation.

Automakers explain that modernization of engines will, first of all, lead to the increase in prices for cars. In turn, each plant will need about 2 billion rubles of additional investment. Market participants will prepare specific documents with the formulation and justification in the near future. The matter concerns the postponement for a year or two.

The Ministry of Industry and Trade raises no objections against the offer of automakers. The Ministry specified that the issue to postpone the date of enactment of the environmental requirements shall be coordinated with other members of the Customs Union.

27.03.2015 / Audi will raise prices for cars again

Russian Automotive Market Research

The German company Audi decided to raise prices for cars in Russia on April 1, 2015. The price increase will concern the whole model line-up. The average cost of cars will grow by 5%.

Previously Audi increased prices for the entire model line-up in Russia in January 2015. Then the average cost of the premium brand cars increased by 9%. Concern explained this step by the sharp devaluation of the ruble.

26.03.2015 / The Ministry of Industry and Trade defined parameters of state auto leasing program

Russian Automotive Market Research

According to the Ministry of Industry and Trade, the state program of preferential auto leasing value of 2.5 billion rubles will enable to additionally produce 16 thousand cars in 2015: 10000 cars, 5400 trucks and 600 buses.

Budget subsidies will be allocated to compensate for a part of the advance payment to leasing companies - 10% of the car value, but not more than 500 thousand rubles per one vehicle and not more than 5 million rubles per one lessee. The subsidy shall not exceed the amount of the discount provided under the lease agreement. The program is expected to come into force on April 1, 2015.

26.03.2015 / Hyundai plant in Saint Petersburg plans to expand export

Russian Automotive Market Research

Hyundai Motor Manufacturing Rus, a plant producing Hyundai and Kia cars in Saint Petersburg, plans to organize export outside the CIS countries. The automaker has already sent an application for certification of products for export to other countries.

Shipments to Kazakhstan accounted for the major part of export of Hyundai cars from Russia last year (85% of the total export); in addition, large batches of cars were sent to Belarus and Azerbaijan. In 2014 the company exported more than 26 thousand new cars, which is about 11% of the total production.

Export supplies will help the company to load its capacity, as the demand for new cars in Russia significantly fell. Moreover, because of the ruble devaluation the export will be more profitable for Hyundai.

26.03.2015 / «Raiffeisenbank» closes down the direction of auto loans

Russian Automotive Market Research

Beginning March 25, 2015, Raiffeisenbank ceases to provide new loans for the purchase of cars and commercial vehicles. The matter also concerns the refinancing of existing loans. This decision is connected with negative trends in the Russian automotive market, which testifies to a very low potential for development of this business in Russia in the medium term. In this situation, the bank prefers to focus its efforts on the development of other areas of the retail business.

The loan repayment and its terms will not change for existing borrowers. However, in order to restructure the regional network it is planned to close offices in 15 Russian cities until October 30, 2015: Angarsk, Barnaul, Bratsk, Volzhsky, Zlatoust, Ivanovo, Izhevsk, Magnitogorsk, Nefteyugansk, Sovetsk, Stavropol, Stary Oskol, Taganrog, Togliatti and Chita. They are recognized to be not very promising in terms of the development of the customer base.

25.03.2015 / Nissan Motor raised prices for Teana

Russian Automotive Market Research

In April 2015 Nissan Motor Company will raise prices for all versions of Teana sedan by 5 thousand rubles, except for the most expensive versions – their cost will increase by 15 thousand rubles. The company connects the growth of prices with installation of steel crankcase guard on all versions. Previously this option was available at 10 thousand rubles. Prices for versions Luxury and Luxury Plus increased by 15 thousand rubles also because of the new light alloy wheel disks (now the plant equips these versions with 17-inch disks instead of 16-inch ones).

Now the most affordable Teana costs 1 million 293 thousand rubles against 1 million 288 thousand earlier and slightly more than 1 million rubles at the end of the last year. The most expensive version of a sedan is available for order at the price from 1 million 754 thousand rubles. Nissan Teana of the new generation is produced at the plant in Saint Petersburg beginning March 2014. 

24.03.2015 / Volkswagen opened a new center in Samara

Russian Automotive Market Research

Volkswagen Group Rus opened a new dealership «Samarskie Avtomobili» in Samara. The new center is the third official dealership of the brand in this city.

The total area of auto center «Samarskie Avtomobili» is 5000 square meters. The entire range of Volkswagen cars is located in the showroom area of nearly 1500 square meters. Service center (of over 3600 square meters) has 13 repair posts, 3 washings and 4 posts of interactive acceptance of cars. There are sections for installation of additional equipment and anti-corrosion treatment of the body in a center. Services include the warranty maintenance of cars, computer diagnostics and capital repair of engines, repair of air conditioning systems, adjustment of headlight beams and other. Capacity of a service center is up to 1800 cars per month.

23.03.2015 / The Russian Government took measures to support the automotive industry

Russian Automotive Market Research

The Russian Prime Minister Dmitry Medvedev signed a number of decrees aimed to implement the anti-crisis plan. The first one concerns the co-financing of procurement of vehicles running on natural gas with regions. The program has been extended to 2015; 3 billion rubles will be allocated for it. The second decree extends the scrappage scheme of old cars for 2015. In addition, a decree on the allocation of 10 billion rubles for partial compensation for expenses for the production of vehicles was signed. The subsidy is provided in the amount of up to 90% of the sum of production costs, but not more than the established maximum for subsidies. The limit size of subsidy depends on the number of cars produced in 2014.

23.03.2015 / The cost of MTPL insurance will increase again

Russian Automotive Market Research

Beginning April 12, 2015 the cost of insurance policies will increase by 40%, the tariff corridor will be expanded from 5 to 20%. For certain categories of vehicles and regions minimum base rates will decrease and the greater tariff corridor will be established.

The tariff increase is primarily caused by a threefold growth of limit life and health payments (from 160 to 500 thousand rubles). In addition, the introduction of a Unified methodology of calculation of vehicle renewal significantly increased the amount of body payments. The rising cost of auto parts also resulted in the rate change.

The MTPL rate has been already increased in October 2014 by 23-30%.