/ Industry, News / Auto suppliers expand their presence in Russia

Auto suppliers expand their presence in Russia

Linked In Share
Auto suppliers expand their presence in Russia

Russia’s auto parts industry is expected to improve as suppliers such as Visteon and Robert Bosch increase their presence in the market and component makers such as GKN Driveline, TRW Automotive and Getrag consider setting up operations there.

The suppliers are being drawn to Russia by automakers that hope to capitalize on forecast growth. Russia’s new-vehicle sales are expected to rise to 4.4 million by 2020 from 2.9 million last year, according to consultancy Boston Consulting Group. If that happens Russia would pass Germany to become Europe’s largest new-car market.

The problem is that only about 25 % of the parts on locally built cars are produced in Russia. That figure, however, is expected to rise to 30 to 35 % in the next 18 to 24 months.

Bosch is currently building a second automotive parts factory in Russia. The new plant will be based in Samara, the same state as Renault-Nissan-AvtoVAZ’s massive Togliatti factory. Bosch said that by 2015 it plans to invest about 40 million euros in the new location, where it will make antilock braking systems and alternators, mainly for local customers.

Visteon strengthened its position in Russia last October when it increased its stake to 69 from 49 % in its interior electronics joint venture with Russia’s Avtopribor. The move made Visteon a majority shareholder in one of Russia’s leading cockpit electronics suppliers, said the company, whose customers include Ford Motor and Renault-Nissan-AvtoVAZ.

Among the suppliers investigating whether to build a factory in Russia is GKN Driveline.
“As the car companies move into Russia they’re looking for companies like GKN to move with them to supply local content,” said James Voeffray, head of program management and strategy at the driveshaft maker.

Other suppliers are eyeing Russia. Transmission maker Getrag is working on a plan for Russia and safety specialist TRW Automotive is also interested in the market. Carmakers are looking to source more parts from Russia to cut costs and to meet a government-mandated target of having 60 % local content to qualify for reduced import tariffs.

Via Automotive News Europe

by Aurel Niculescu (my Google+) - Tuesday, January 21st, 2014 - filed under Industry, News. Image credit: .
Linked In Share
Related Articles
auto parts russia suppliers


Discuss: Auto suppliers expand their presence in Russia

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

[VIDEO] Euro NCAP: Kia Soul and Kia Soul EV score just 4 stars
[VIDEO] Euro NCAP: Kia Soul and Kia Soul EV score just 4 starsEuro NCAP has ended the year with the testing of two version of the Kia Soul, the regular one and the electric, as both of them ...
[VIDEO] Euro NCAP: Audi A3 Sportback e-tron and Jeep Renegade get 5 stars
[VIDEO] Euro NCAP: Audi A3 Sportback e-tron and Jeep Renegade get 5 starsThe latest crash test session performed by Euro NCAP is starring the Audi A3 Sportback e-tron and the Jeep Renegade, as both ...
Facelifted Hyundai i40 goes official in Europe
Facelifted Hyundai i40 goes official in EuropeThe European version of the Hyundai i40 facelift has been officially unveiled in its two body styles, sedan and wagon. The 2015 ...
Ferrari 458 successor spied – Ferrari 458M
Ferrari 458 successor spied – Ferrari 458MThe successor of the popular Ferrari 458 rear mid-engined, rear-wheel drive supercar has been spied recently with its camouflaged ...
Recall roundup: Nissan Juke, Infiniti QX56, Q70, QX80 and M56 for fuel leak
Recall roundup: Nissan Juke, Infiniti QX56, Q70, QX80 and M56 for fuel leakNissan and Infiniti have issued a recall for several of their models because of a possible fuel leak. A new recall is affecting ...
Recall roundup: BMW i8 for fire risk
Recall roundup: BMW i8 for fire riskThe German based automaker BMW has issued a recall for the i8 “green” sports car as this is confronting with a possible fire ...
[VIDEO] Land Rover Discovery Sport gets tested by Auto Express
[VIDEO] Land Rover Discovery Sport gets tested by Auto ExpressThe British automotive journalists from Auto Express have recently went for a spin in the brand new Land Rover Discovery ...
Recall roundup: Hyundai Genesis and Equus
Recall roundup: Hyundai Genesis and EquusHyundai has officially announced a recall for the Genesis and the Equus because of a problem with the brake lights. The National ...
US: NHTSA nominee Rosekind approved by Senate
US: NHTSA nominee Rosekind approved by SenateMark Rosekind, the White House nominee to be the next leader of the US auto safety regulator, the National Highway Traffic Safety ...
Audi Prologue Concept rendered as Convertible
Audi Prologue Concept rendered as ConvertibleThe first rendering with the Audi Prologue Concept is showing us how the model may look like in a drop-top body style. The ...
US: Mercedes plans to show off at CES how driverless car interiors could look
US: Mercedes plans to show off at CES how driverless car interiors could lookAlthough in January the traditional start of the auto industry season is given by Detroit’s NAIAS, there are automakers that ...
McLaren 650S Limited Edition introduced
McLaren 650S Limited Edition introducedMcLaren has officially pulled the wraps off the 2015 650S Limited Edition which is coming with some unique changes compared to ...
US: White House introduces new program designed to make car tires safer, more efficient
US: White House introduces new program designed to make car tires safer, more efficientThe US government has started the roll out of a new tyre program that mulls US consumers buying tires that would allow their cars ...
Next-gen Chevy Spark rendered, based on Opel Karl
Next-gen Chevy Spark rendered, based on Opel KarlThe new generation of the Chevrolet Spark has been recently rendered as it has been based on the Opel Karl. After it has been ...
Mercedes-Benz S63 AMG gets tuned by Mansory
Mercedes-Benz S63 AMG gets tuned by MansoryMansory has worked its magic once again as the tuning company has developed a new upgrade program, which is aimed towards the ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

kia soul euro ncap
audi a3 sportback e-tron euro ncap
2015 hyundai i40 facelift 1
Spy-Shots of Cars
Mercedes-autonomous-interior-two
McLaren 650S Limited Edition 1
Mercedes-Benz S63 AMG Mansory tuning 1
infiniti concept vision gran turismo 1
Facelifted Citroen C4 1
2016 mini jcw 1
Mercedes-Benz GLE Coupe 2
lamborghini aventador blue wrap for sale 1

More automotive from inautonews
Euro NCAP has ended the year with the testing of two version of the Kia Soul, the regular one and the electric, as both of them have scored just 4 stars out of a possible five. The Kia Soul has been rated with 75 percent in Adult Occupant protection, 82 percent in Child Occupant Protection, 59 ...
read more
Inautonews Editors Section
Test Drive: Ford Fiesta ST
Test Drive: Ford Fiesta ST The current generation of the Ford Fiesta ST has been officially presented to the public back in March, 2012, during the Geneva Motor Show, and it ...
Test Drive: Renault Twizy – Back to basics
Test Drive: Renault Twizy – Back to basics Renault has been producing the Twizy for a couple of years now, in its Valladolid, Spain, facility but spotting one on European roads can turn out ...
Test Drive: Mercedes-Benz SL400
Test Drive: Mercedes-Benz SL400 The Mercedes-Benz SL is currently in its sixth generation and since the company has released a new entry-level, the SL400, which is basically the ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety [VIDEO] Euro NCAP: Kia Soul and Kia Soul EV score just 4 starsEuro NCAP has ended the year with the testing of two version of the Kia Soul, the regular one and ... [VIDEO] Euro NCAP: Audi A3 Sportback e-tron and Jeep Renegade get 5 starsThe latest crash test session performed by Euro NCAP is starring the Audi A3 Sportback e-tron and ...
Safety Section