Automobile Industry Market in St Petersburg and the Leningrad Region

вестник 03.07.2013

For the period of January-March of this year, St Petersburg auto giants have produced 100 300 cars which made it 9% more than that of 1st quarter of 2012. However, the production volume has dropped by 12% (up to 30 000 cars) compared to May the last year. This decline was partly due to long public holidays that made the average number of work days roughly limited. Demand falling for cars manufactured in St Petersburg made the production fall, too. As a result, car factories went on changing their products line to prevent the overstocking.

Country-wide, however, automobile manufacturing in Russia has increased by 2% in 1st quarter of 2013 compared to that of the last year. The same is true for the Northwestern Federal District.

According to the Federal State Statistics Service, sales volumes in the 1st quarter of 2013 increased by 20% compared to January-March last year. There has been an increase by 14% in the Northwestern Federal District – reached by 41 % in St Petersburg. However, the Automobile Manufacturers Committee of European Business Association (EBA) report states that there was a decrease in sales volume by 12% (229 670 cars) on Russian car market in May. Compared to January-May 2012, too, production volume decrease in January-May 2013 rose by 4%. Experts say that the main reason for that is gradually falling demand for Russian cars.

4 international automobile manufactures – Toyota, General Motors, Nissan and Hyundai (Kia) – have their branch factories in St Petersburg. The production lining includes so far 11 models: Chevrolet Cruze, Opel Astra, Chevrolet Trailblazer, Nissan Teana, Nissan X-Trail, Nissan Murano, Infiniti FX, Infiniti M, Toyota Camry, Hyundai Solaris, Kia Rio.

Ford, too, has a plant in the Leningrad region. Its production lining stands for Focus and Mondeo. Symbolically enough – in January 2012, the plant’s 10 year anniversary, it produced its 500 thousandth car.

Fiat, although expected, has not opened a single plant in St Petersburg and the Leningrad region. In January 2012, Fiat and Sberbank made an agreement on initiating a joint manufacture with Sberbank holding 20% of bonds, and Italian giant gaining the rest of them.

Nissan revealed in May 2012 it is going to expand its business. It is going to increase the production volume by 100 000 cars a year by 2014. Complimentary investments, too, are expected to reach 6,7 bln. RUB. They will go on building 50 thousands m2 of assembly shops.

Toyota, too, is one of the many to expect business expansion in 2014. The company’s to-day agenda is to open new assembly shops, featured in cover panels stamping and plastic parts. The investments are estimated to reach 2,7 bln. RUB.

Meanwhile, the total production volume of all automobile manufacturers operating for St Petersburg and the Leningrad region is 550 000 cars a year. In 2012, the workload exceeded 91%. Hyundai is an absolute champion here, with holding 55% of all car production volumes in St Petersburg. This year the companies are going to reach the workload by 95%, up to 530 000 cars a year. There is a good chance to increase the production through rising exports to countries of Customs Union. The uncertainty and common concern about new markets, however, can negatively affect the increase of production volume.