From Russia with Leads

06 July 2004 #SMMT News

The Russians are coming – to deliver an important message to component and aftermarket suppliers at two UK workshops.

Senior representatives of auto maker SeverStal, and Russian distribution agents Exist.Ru, as well as GKN, Borg Warner and Johnson Matthey, will explain that Russia is a rich seam of opportunity waiting to be tapped by switched-on UK suppliers.

The group has been assembled by SMMT’s International Department (with support from UK Trade & Investment) and will meet at Forbes House in London on Tuesday 6 July and at the Techno Centre at Coventry University on 7 July 2004.

UK companies will hear the findings of a comprehensive report into the Russian market for automotive companies compiled by Crozier International. This points to a country with a growing economy where new car sales are rising rapidly. Car ownership is increasing at a rate of 1.5 million units per year and is expected to rise to 2.2 million units by 2010 on the back of an economy that is predicted to grow at a rate of seven per cent GDP.

Other key facts revealed by Russian Automotive Industry – Opportunities for UK-based Suppliers include:

“¢ Foreign OEMs are driving up standards within the Russian component industry

“¢ By 2008 foreign branded car production will exceed that produced by traditional Russian OEMs

“¢ Local incentives and tax in-kind investments are available through regional oblasts (governments) for inward investors

“¢ Samara, Togliatti, Nizhny, Novogorod and Leningrad are identified as the most active regions in the automotive sector

Commenting on opportunities in Russia, SMMT’s head of international Mark Norcliffe said, ‘On the one hand Russia’s diverse but comparatively elderly car parc offers tremendous potential for aftermarket sales. On the other, the new car market is growing apace and we expect more major car plants to be established in the near future. UK suppliers have a window of opportunity but need to move quickly. Within the next 12 to 18 months we expect this window to have closed.

‘This week’s seminars represent the first step. SMMT will take a delegation to Russia in the near future to put UK suppliers in direct touch with Russian companies and use our track record on the international stage to guide them to success, avoiding any pitfalls along the way.’

Seminar chairman, Alastair Kitson of GKN Driveline commented, ‘The Russian market will change a good deal in the short to medium term as more global vehicle manufacturers seek to exploit its possibilities. I am delighted that SMMT recognises this potential and has put in place a programme of support to help UK companies participate in the growth opportunities. The report from Crozier International puts the situation into context. It is an excellent tool for UK manufacturers looking to take advantage of the Russian supply chain and aftermarket.’

Speakers at the workshops, which begin at 10.15 am, include:


Alastair Kitson, Director, Eastern Europe, GKN Driveline

Component sector

Michael English, Senior Partner, Crozier International

Richard Long, International Business Manager, Borg Warner Cooling Systems

Alexander Korneychuk, Director Strategic Projects Development (Automotive components) SeverStal-Auto

Nigel Willis, Business Development Manager, Johnson Matthey

Aftermarket sector

Howard Roberts, Senior Partner, Crozier International

Vladislav Domoratski, Managing Director, Exist.Ru

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