Russian Automotive Industry Research Articles

Adaptation of Russian Automotive Industry to the Impact of New Sanctions

One of the major industries significantly affected by the new sanctions is the Russian automotive industry. The withdrawal of Western brands, restrictions on the import and maintenance of foreign cars and their components already imported into the country, as well as the curtailment of car production in Russia have significantly changed industry and market structures, accelerated price growth and led to a change in the characteristics of products on the market towards their technical simplification. The research methodology is based on statistical analysis and comparison of discrete institutional alternatives. Using the methods of the new institutional economics, the main directions for adapting business models in the Russian passenger car industry to sanctions restrictions were identified. In particular, special attention is paid to the specifics of international transactions in the context of sanctions. Based on the analysis of the process of changing business models in the market, it can be concluded that current changes only partially compensate for the impact of sanctions, but at the same time create restrictions for the long-term development of the domestic car market, undermining incentives for technological improvement of cars on the market. Moreover, current measures can have a significant negative impact on consumer welfare, provoking an increase in the volume of unsatisfied demand. To solve this problem, it is advisable to adjust the state regulation of the domestic automotive market. In particular, it is advisable to ease foreign trade restrictions (including reducing the size of the recycling fee for cars) and review the import substitution policy in terms of providing the automotive industry with technologically sophisticated components.

Фронтиры развития автопроизводства в РФ в условиях адаптации к новым вызовам

The automotive industry is one of the main industries in mechanical engineering. It accounts for a large share of capital investments. The conveyor assembly system, which was widely used in this industry at the time, radically changed the entire industry of the XX century. The multiplicative effect of car production makes the industry the "locomotive" of the economy. The automotive industry is today one of the frontiers in the development of our country's economy. The purpose of the study is to analyze the situation in the Russian car market and assess the prospects for the development of the Russian automotive industry in the context of the consequences of the COVID-19 pandemic and the strengthening of sanctions restrictions by unfriendly countries. In the process of working on the study, methods of analysis, synthesis, description, comparative, problematic, logistic and dynamic methods were used. According to the results of the study, the following conclusions were drawn: the automotive industry plays an essential role in the processes of globalization of the modern economy. However, the disruption of logistics chains had a negative impact on the situation in the domestic automotive industry and the consumer market, led to a reduction in production and an increase in unemployment in this industry. The way out of this situation is to reorient domestic car production to cooperate with companies from friendly countries, such as China, and establish logistics chains through intermediary countries, such as Kazakhstan, but adjusted for minimizing costs. An important role in solving this problem can be played by the development and implementation of an import substitution mechanism in the production of domestic cars, including electric cars. The novelty of the study lies in the fact that the proposed frontiers in the stabilization of Russian automotive production have been identified taking into account the impact of both external and internal factors in the current volatile economic situation caused by the reaction of unfriendly countries towards Russia.

Проблемы и перспективы производства грузового транспорта в России

The article discusses the problems and prospects for the production of freight transport as a branch of the automotive industry in the coming years. The goal is to identify problems and highlight prospects for the production of freight transport in Russia. Objectives: to conduct a brief overview of the freight transport segment of the Russian automotive industry, analyze the dynamics of production in the freight segment in recent years, identify the main problems in the production of freight vehicles, highlight the main prospects for the development of the studied segment of the Russian automotive industry in the coming years. Conclusions: Conclusions were drawn about the positive dynamics of production and sales of freight road transport in Russia in 2023, despite the crisis years for the industry in 2020-2022; leadership of the KAMAZ company in the Russian market in the segment of domestic freight transport; serious import dependence and high competition from Chinese companies as key problems for Russian truck manufacturers; positive forecasts for the development of freight transport production in Russia, taking into account existing production capacities at some Russian enterprises, intensified efforts of the state and automakers to reduce dependence on imports, the state’s understanding of the need to increase financing of the industry, expanding the need for freight vehicles with an increase in the share of cargo transportation across Russia along highways.

A strategic approach to the development of automotive dealerships in a changing market environment

The activities of automotive dealerships need to be strategically adapted to changing market conditions. The article examines the role played by the automotive industry in the Russian economy, presents an analysis of changes in the structure of new car sales in the period from 2021 to 2023.The strategic factors that dealerships should consider when choosing a brand are described. The necessity of analyzing the competitive environment is justified, the existing marketing tactics of manufacturers are presented, the importance of the availability of spare parts and opportunities for revenue growth from after sales-service are described. The article emphasizes the need to invest in the reconstruction of dealerships, despite the inevitable financial losses, to ensure the future profitability of the business. The study provides information for players in the Russian automotive industry, helping them to change their strategy for the future development of the company in a changing market environment.

A study on brand competitiveness: A comparative analysis of European and Korean auto brands in the Russian automotive industry

This study compares brand competitiveness of European and Korean auto brands in the Russian automotive market based on cross-sectional datasets for 42 auto brands in Russia of the year 2022. The econometric models (OLS, WLS, and Robust least squares) are constructed by employing a theoretical frame of Porter’s diamond model. The results of the regression analysis allowed us to get to the conclusion that product diversification, accessibility to dealers (or retail shop) and active social media marketing are critical factors to promote auto sales in the Russian market. Based on the comparison, we can draw two important conclusions. First, Korean auto brands are ahead of the European auto brands in value chain management as they have a huge pool of dealers and maximize contact with potential Russian customers. Secondly, the German auto brands lead when it comes to product diversification and social media marketing. However, Korean auto brands are not behind based on those criteria compared to the average European auto brand, and take an above average-middling position. From the outstanding performance of Korean auto brands in the Russian market especially, it seems that securing numerous retail channels is particularly crucial. The results of this study are helpful for national and international automotives companies to create business strategies in the Russian automotive industry.

АНАЛИЗ СОСТОЯНИЯ И ПЕРСПЕКТИВ РАЗВИТИЯ АВТОТРАНСПОРТНОЙ ОТРАСЛИ РОССИИ С ПОЗИЦИИ МАРКЕТИНГА

The article reveals the results of the analysis of the state and prospects of development of the domestic motor transport industry. The authors studied the main indicators of the development of the leading countries of the world car market and characterized Russia’s place in this ranking. The article reveals the causes and specifics of the structural transformations taking place in the Russian automotive market, as well as identifies Russian brands that occupy leading positions. The dynamics of car production in Russia as a whole and in terms of individual market segments is characterized. The authors have revealed the key trends in the development of domestic motor transport: digitalization of roads; development of transport infrastructure, expansion of the electric transport segment; growth in the number of charging stations, including fast charging stations for electric vehicles. Based on the analysis, conclusions are drawn about the need for effective marketing and PR support for high-tech projects in the Russian automotive industry.

Results and review of IASF-2023

On 18–19 October 2023, the annual International Automobile Scientific Forum (IASF-2023) “Ensuring Competitiveness of Russian Automotive Industry until 2035” took place, dedicated to the 105th anniversary of FSUE “NAMI”. The event format assumed both offline and online participation. The issues of providing technological sovereignty of the Russian automotive industry and development of the domestic component base, technical and technological developments in the field of innovative land vehicles and systems were discussed during the Forum. Within the Forum, an exhibition of technical achievements of FSUE “NAMI” and manufacturers of automotive vehicles and components was held dedicated to competitiveness of the Russian automotive industry. Components of electric, hybrid and intelligent vehicles, electronic control units, assemblies and aggregates of powertrains, electric traction vehicles and hybrid vehicles with additional power sources were also presented. There was a competition held in two categories: “Best Student Scientific Paper” and “Best Graduate Student and Young Specialist Scientific Paper”. 20 applications were filed for the competition from the educational, scientific and production companies and organizations.

Direct Investment of China in the Russian Automotive Sector as Part of the Global Strategy of Chinese Automakers

This article reveals the main trends of direct investments by China in the Russian automotive industry within the context of the global strategy pursued by Chinese auto manufacturers. Through an examination of the motivations behind Chinese automakers entering into foreign markets, using the eclectic paradigm of J. Dunning, the authors draw conclusions about the prospects of Russian-Chinese cooperation in the automotive sector. It is posited that the success of Chinese automotive corporations in the global arena is primarily linked to their ongoing exploitation of advantages generated in the domestic market, which are also extended outward through foreign investments. The main investment motivations identified for Chinese automakers include market access, technology transfer, cost reduction and global expansion. The authors highlight market access and global expansion as the principal drivers of Chinese direct investments in Russia. The challenges that Russian automotive industry faced recently will not allow fully leverage the benefits of cooperation with Chinese automakers in the short term. However, substantial impact of the cooperation with Chinese partners is expected to be the deeper localization of production in Russia.

Адаптивное развитие системы управления предприятиями российской автомобильной промышленности в условиях экономической неопределенности

The article analyzes the current economic situation in the Russian automotive industry. Possible solutions to the problems of the industry are considered. Different points of view on the definition of the essence of adaptive development of production management system are presented. The analysis of managerial measures, models of adaptive development implemented in the automotive industry under the conditions of anticonvolutionary restrictions and economic sanctions is offered. The first results of the domestic automotive industry in overcoming the negative effects of economic uncertainty are presented. The aim of the work is to determine the optimal approach in the adaptive development of automobile production in conditions of economic uncertainty. To implement the goal of the research, the following tasks were set: to analyze the current situation in the Russian automotive industry, to identify the main problems in its development, to consider ways of implementing adaptive development of auto production management and its results.

IASF-2022 results

On 18–19 October 2022, the annual International Automobile Scientific Forum (IASF-2022) “Sustainable Development of Russian Automotive Industry under Present-Day Conditions” took place. The event format assumed both offline and online participation. The issues of providing technological sovereignty of the Russian automotive industry and development of domestic component base, technical and technological developments in the field of innovative land vehicles and systems were discussed during the Forum. Within the Forum, an exhibition of technical achievements of FSUE “NAMI” and manufacturers of automotive vehicles and components was held dedicated to the domestic innovative solutions in terms of vehicle decarbonization, highly automated intelligent vehicles and intelligent control systems. Components of electric, hybrid and intelligent vehicles, electronic control units, assemblies and aggregates of powertrains, electric traction vehicles and hybrid vehicles with additional power sources were also presented. The competition was held in two categories: “Best Student Scientific Paper” and “Best Graduate Student and Young Specialist Scientific Paper”. 18 applications were fi led for the competition from the educational, scientific and production companies and organizations.

Factories of the future in the automotive industry of Russia: the balance between energy efficiency and digital development

The paper studies the prospects for the introduction of advanced production technologies (APT) and new business models at the enterprises of the automotive industry of the Russian Federation in order to find the balance between the investments into the more efficient energy management of the industrial buildings and the financing of digitalization process in the model of “factories of the future”. It includes the study of the opportunities that appear in companies that are “factories of the future”, the analysis of the existing experience in the implementation of APT and energy efficiency tools at the enterprises of the automotive industry in Russia and Europe and the identification of the factors limiting widespread “factories of the future” at the moment. The authors present an economic view on the problem of integrating both advanced production technologies and new energy management models into the activities of the Russian automotive industry enterprises.

Causes and consequences of truck production predominance in the Soviet automotive industry in the first half of the XX century

A significant predominance of the number of produced trucks over the number of passenger cars was a feature of domestic automotive industry development until the 70-ies of the XX century. This fact did not correspond to the global vector of automotive industry development. The paper analyses the causes and consequences of this phenomenon by involving mainly a corpus of statistical sources of Russian and foreign origin. The socialist foundation of the political structure of the state and the focus on the development of heavy industry in the economy are identified as the fundamental factors that determined the specifics of Russian automotive industry strategy. By comparing the volumes of freight turnover of railway, river and road transport, the length of communication routes of various types both within the USSR and with the corresponding indicators of foreign countries, the author picks out the features of the Russian transport system that determined the containment of the USSR automotive industry development as a whole and the passenger car industry in particular. The paper denotes poverty and low level of education going with it to be among the social phenomena that prevented the mass distribution of passenger cars in the USSR and did not allow to form consumers of passenger car industry products in the country. Based on domestic and foreign data sources, the article concludes about the stability, regularity and validity of the predominance of produced trucks over passenger cars in the economic development of the country in comparison with the pan-European ones. It is noted that among others the result of this sectoral strategy is the contribution of truck production to the industrial breakthrough of the USSR in the 30-ies and the victory over Nazi Germany and Japan in 19411945 as well as a complex of diverse phenomena that exhibited in various sectors of social and economic life of the Soviet Union. The author claims that the change in the ratio of manufactured trucks and passenger cars in favour of the latter occurred in the 70-ies of the XX century as a result of the victory in the inter-party struggle of the concept of peaceful coexistence. The use of new data allowed the author to identify the influence of politics in the Soviet socialist state on the development strategy of the automotive industry as one of the key sectors of the economy

Opportunities for cooperation and the use of China's experience in automotive industry in current Russian conditions

The current economic situation in Russia is characterized by significant instability due to the large sanctions burden provided by the countries of Europe and the United States because of the special military operation in Ukraine. In the emerging conditions, which caused an increase in inflation, currency volatility, the closure of a large number of companies in various market segments, and, consequently, unemployment, almost all economic activity has become very difficult. Thus, domestic automobile production was also affected. One of the latest measures aimed at destabilizing the Russian automotive industry within the framework of the next package of sanctions in March 2022 was a partial ban on the supply of high-tech products to the country and support for the IT-infrastructure of enterprises. Because of the withdrawal of foreign companies from the Russian market, production facilities such as: Volvo Cars, Jaguar, Land Rover, General Motors, Mitsubishi and others has stopped. The number of Russian car dealers by May has decreased significantly compared to the beginning of the year. Thus, about 70 dealer contracts were terminated. One of the largest car plants in Russia Avtovaz has already stopped its operation several times, and soon the French car concern Renault is going to transfer its share to the Central Automobile Research Institute FGUP NAMI with a buy-out option in 56 years and the production of most models of Renault will be stopped. The situation is also complicated by the already existing crisis in the industry due to the global shortage of semiconductors and other automotive components and newly emerged problems with logistics. There is an obvious need to conclude new deals, find new markets for purchasing raw materials and materials, intensify cooperation with friendly countries and use their experience, which can be done on the basis of uniting Russian clusters and foreign technological platforms, namely the TP of China is being considered.

The Import Substitution Trap in the Realities of the Automotive Industry.

—The article examines mechanisms underlying the formation of the “import substitution trap,” which is a stable ineffective institution that serves as a means of protecting national producers from foreign competition. The costs and risks of rooting this institution in the Russian automotive industry are analyzed, the import substitution strategies of the Russian government at the current stage of the industry’s development are investigated, the experience of import substitution in the foreign automotive industry is summarized. The conclusion is substantiated that the import substitution policy brings short-term effects but is disadvantageous in the long term. Domestic substitutes can gain a strong market position but their success is fragile and requires continued government support and protectionist patronage. The author shows that the policy of import substitution becomes successful when it relies on competition, when the domestic import substitute, having entered the market and strengthened its position, is gradually deprived of preferential conditions, and the state support of its manufacturer is gradually cut while the market is transferred to a “freewheeling” mode for all players.

Development of innovative activity of enterprises of automotive industry in order to increase resource efficiency

Today, one of the key conditions for the competitiveness of any state is an active policy in the development of innovative technologies and knowledge-intensive industries. The assessment of the prospects for the development of technological solutions should be carried out taking into account the current state of innovative activity of enterprises based on the analysis of trends in the development of the automotive market. Also, it is necessary to take into account external and internal factors that can influence it. The relevance of the work also lies in the fact that in the scientific literature there is no single theoretical and methodological approach to the problem of reducing the technological lag of the Russian automotive industry from world positions through innovative technologies in conditions of low resource availability. Experts note that the lag is mainly due to the global shortage of semiconductors, a sharp rise in prices for materials, primarily metal, as well as the moral and physical obsolescence of the technologies used. The situation is also aggravated by the impact of the Covid-19 pandemic and its consequences on related industries, including the automotive components industry. On that basis, in order to maintain competitive positions and increase the efficiency of the domestic automotive industry, it is necessary to study the specifics and problems of development and innovation activity of the industry under study.

The Impact of Global Economic Crises on the Development of the Automotive Industry in Russia

Introduction. The cyclical nature of the development of the market economy causes the periodic occurrence of crisis phenomena that negatively affect the socio-economic situation in the country and the development of economic sectors. The modern automotive industry, composed of global supply chains, is highly sensitive to the impact of economic crises. Based on the research conducted, the article assesses the impact of the global economic crises of the 21st century on the development of the automotive industry in Russia and identifies the problems and risks of the development of this sector of the economy. Materials and Methods. The study used official national statistics, statistical data from international organizations, data from analytical agencies, public reporting by automotive corporations, as well as regulations governing the development of the Russian automotive industry. The use of the techniques of monographic description, of the abstract and logical approach, system analysis, methods of economic and statistical, comparative analysis made it possible to characterize the dynamics and identify the main trends in the development of the Russian automotive industry under the impact of the global crises of 2008‒2009 and 2020, as well as to identify the key problems and risks of the development of the sector in terms of the impact of the COVID-19 pandemic, which are to be taken into account when elaborating and adjusting strategic programs and plans for the development of the sector. Results. The impact of the global crises of 2008‒2009 and 2020 on the Russian automotive industry has been analyzed. The dynamics and structure of production and sales of motor vehicles in Russia have been studied; the cause-and-effect relationships of changes in the performance of the automotive industry under the impact of economic crises have been revealed; an assessment of the measures of state support for the industry in the crisis periods has been given. Discussion and Conclusion. The current global economic crisis caused by the COVID-19 pandemic has posed new threats to the development of the automotive industry and has made topical the research issues related to the transformations taking place in the sector under the impact of the crisis. The identified imbalances and negative trends in the development of the automotive industry require improving state regulation of its development, as well as implementing effective measures not only to overcome the consequences of the current crisis, but also to counter possible crises in the future.

Russian automotive industry: results, trends and prospects

Russian automotive industry: results, trends and prospects

Looking in the rear‐view mirror—A 35 year retrospective on the Russian automotive industry

AbstractDrawing on foundational arguments from the literature on emerging market institutional strategies, and employing a realist historical analysis, we present a retrospective on the Russian automotive industry. We begin by tracing the origins of the sector and synthesizing salient post World War II developments. We then recount the subsequent expansionary decade of the 1960s, followed by the stagnation of the late 1980s, culminating in the eventual collapse of socialism and the breakup of the USSR. Attracted by both the rapid growth in the local market, and the preferential tax rates that accompanied investments, we then document the swift expansion of production facilities in Russia by major global manufacturers in the 2000s. We show how eventually an ensuing sharp halt in local market growth, and an accompanying rise in spare production capacity, saw most manufacturers pursue institutional strategies aimed at obtaining new tax concessions and leveraging intraindustry cooperation, rather than divesting their recently established production facilities. Overall, our retrospective, in particular, calls attention to how global manufacturers were not only to acquire able and rejuvenate existing production facilities or install new greenfield ones, but also to exercise their agency in shaping the broader policy framework and in fashioning new sectoral institutions designed to buttress and sustain the industry.

РАЗРАБОТКА СОСТАВА УДАРОПРОЧНОЙ ПОЛИМЕРНОЙ КОМПОЗИЦИИ АБС/ПК ДЛЯ АВТОМОБИЛЬНОЙ ПРОМЫШЛЕННОСТИ

Polymer and composite materials are becoming more and more widely used in the Russian automotive industry. The Russian market of polymer materials for automotive components is characterized by an insufficiently developed production of some types of such materials. And, as a result, the use of imported materials. Styrene plastics are one of the innovative materials for the automotive industry. Using them in a car makes the product more attractive to customers. The use of this type of plastics allows to create a new look for the car. This applies to both the interior and exterior. The aim of this work is to develop the composition of a polymer composition based on ABS plastic from domestic raw materials. In addition, the new mixed composition should replace imported mixed compositions or contain a minimum amount of imported components of the composition, which will significantly reduce the cost of products and accordingly the car. The article analyzes the polymer materials used in the automotive industry. The disadvantages of using these materials in their pure form are revealed. The selection of the components of the composition of the impact-resistant material with the development of its formulation has been made. The composition of an impact-resistant polymer composition based on ABS plastic and PC has been developed, which is not inferior in terms of the complex of properties to the imported material. The influence of the composition of ABS-plastic, various grades of polycarbonate, their ratio in the polymer composite material on the physical, mechanical and technological properties of the obtained composition has been investigated. It is shown that the best set of properties is possessed by a material based on 2020-30 ABS-plastic and PC-3S polycarbonate with a component ratio of 70%:30%.

High-pressure cylinders of gas-fuel system made of composite materials

Use of gas fuel systems will allow to carry out the ecological tasks facing the Russian automotive industry, it is essential to cut down expenses of consumers on fuel and to increase an engine lifetime. As a basis of such modernization it is necessary to consider development, calculation, a design binding and technological security of production of cylinders of pressure as capacities for the compressed or liquefied natural gas. For the purpose of weight reduction of cylinders the preference is given to the polymeric composite materials using methods of winding of the rein.