Home » Business » AvtoVAZ Vice President Discusses Auto Component Crisis and Russian Manufacturing Plans

AvtoVAZ Vice President Discusses Auto Component Crisis and Russian Manufacturing Plans

Thursday, 22 February 2024 09:05:59

After European partners left the alliance with AvtoVAZ, the latter had problems with components for its small cars. Hence the under-equipped cars accumulated at the factory sites, about which so much was written at the end of last year. How serious the situation is, at the recent auto business forum “Russian Automotive Market. Trends and Forecasts,” said Dmitry Kostromin, Vice President for Sales and Marketing of AvtoVAZ JSC.

“If we take the Europeans, then today there was a almost complete replacement, and to a greater extent on eastern partners,” said a representative of the leading Russian automaker. — It is very difficult to localize something in Russia, since the Russian business plan, as a rule, provides for 100% profit and preferably within 3 years. In this situation, it is simply unrealistic to launch a single business idea.”

According to Dmitry Kostromin, it will not be possible to produce a part in Russia cheaper than in China, no matter how hard you try: “Their production volumes are incommensurate with the needs of our market. Therefore, a working group was created at the level of the Russian Ministry of Industry and Trade, which called on experts from various industries, including the military-industrial complex, to unite and see what can be done regarding auto components.”

“Today the country has begun to restart productionspecializing in the production of auto parts, from among those who managed to survive, noted the top manager “AvtoVAZ”. — The plans include the resumption and modernization of factories producing spark plugs, car seats, as well as more complex components, including electronics. This process, I repeat, has been started, and it will definitely continue.”

The expert clarified that from 2026 in Russia Batteries will be mass produced — a specialized plant was founded 2 years ago. It should give the market dynamics in the field of the first localized electric vehicles, and in particular, it is interested in its launch “AvtoVAZ”which already this year has committed to show the serial e-Largus. According to Dmitry Kostrominelectric “Largus” will become the most localized car in the model line Lada.

“First of all, it is necessary to prioritize the launch of new production sites for auto components,” said a representative of the automaker. — And here we need to work together with business. Manufacturing is hard work and it will not be easy for the same AGR company that wants to enter the manufacturing sector.”

And what, in principle, about spare parts on the market?

The question, as they say, is interesting, and I tried to answer it within the same forum Ilya Plisov, executive director of the Euro Auto network: “In 2023, the media actively wrote that, they say, spare parts have become much more expensive, car repair prices have increased, everyone is leaving the market and other nightmares. At the same time, journalists, including authoritative federal publications, demanded confirmation from experts. Let’s get a look, what really happened to auto parts».

The company’s experts studied changes in prices for spare parts, as they say, article by article at the beginning of 2023 and in December of the same year. There were no particularly significant changes recorded in the transmission group of products. For example, CV joints and CV boots fell in price by 1% over the year, and wheel bearings dropped in price by 3%. “In terms of the number of positions, there was no loss, so to speak – in December we saw almost the same values ​​as at the beginning of the year,” noted Ilya Plisov. — Moreover, well-known and respected brands seem to have left Russia, but in fact they are still “in the market.”

In the “Suspension and Steering” category, the picture is slightly different – a total of +10%: stabilizer struts and front suspension arms have risen in price over the year by 6% and 8%, respectively. Rear suspension arms and steering racks added 11% and 12% in price. Shock absorbers, brake cylinders and brake hoses showed similar growth. Brake discs became more expensive by 6%, brake disc pads – by 2%.

“Each of the brands moved in the past year who is lower, who is higher. The current table is filled with new names that 4-5 years ago were considered niche and were present in a certain city/service,” noted Ilya Plisov. “In general, if a client wanted to receive a product in 2023 no more expensive than what he was used to in 2022, he had such an opportunity, and this fact itself cannot but rejoice.”

2024-02-23 12:52:43
#happening #auto #parts #market #Russia #situation #import #substitution

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.