Russian light commercial vehicle market or occupied by China

Russian media not long ago regarded the "threat from the East" as the topic, pointing out that the Russian light commercial vehicle market may be occupied by the Chinese.
The article points out that the Russian light commercial vehicle market has shown strong growth momentum in recent years, and foreign automobile manufacturers, especially Asian automobile manufacturers including China, have launched offensives against this market segment.

The sales of light-duty commercial vehicles from foreign brands on the Russian market have soared, with an annual increase of up to 100%. Although they are currently unable to compete with the Gorky Automobile Factory, the overlord of the local light commercial vehicle market in Russia, experts have warned that this pattern may change soon.

In today's Russian commercial vehicle market, the Russian Gorky Automobile Factory continues to occupy a dominant position. Its main model is GAZEL and its many variants, currently occupying 50% of Russia's light commercial vehicle market share. Following Hyundai and Ford, South Korea continues to erode the market of the Russian Gorky Automobile Factory. Analysts pointed out that in the next few years, the Russian light commercial vehicle market will be staged with a good show of "snapping crickets, the yellow tits in the back," the Chinese will be the last laugh.

Like other Russian economic sectors, the Russian light commercial vehicle market is also “scratching the west winds”. In recent years, Ford Motor Company of America has used Transit light commercial vehicles to sweep this market segment. Its success lies in: keenly grasped the light commercial diesel car segment, after Russia has not yet had a high-quality one-ton diesel car. The GAZEL light commercial vehicle at the Gorky Automobile Plant in Russia is equipped with a gasoline engine. The fuel economy is of course worse, and its quality is not as fast as that of Ford Motor Company of the United States. With good load capacity and unimpeded traffic in the city, it is a drop-off for Ford Transit light commercial vehicles. And its arrival was just right, because Russia's Av Touter Automobile Assembly Plant just stopped production of K-series light trucks from South Korea’s Kia Motors.

Last year, Asian automobile manufacturers first appeared in the light commercial vehicle market in Russia, and Hyundai Motor Co., which competed for the event, won the No. 1 sales volume of its class with Porter light commercial vehicles. Koreans are unique in their uniqueness. Most of the Porter light commercial vehicles sold are assembled by the Russian Taganrog Automobile Factory. For example, in 2006 South Korea Hyundai Motor Co., Ltd. sold a total of 7,721 Porter light commercial vehicles in Russia, 7131 of which were assembled and manufactured by the Russian Taganrog Automobile Plant. Its customer base was mainly small companies. In 2007, the Taganrog Automobile Plant plans to assemble 10,000 South Korean Hyundai Porter light commercial vehicles and continue to consolidate its dominant position in the Russian light commercial vehicle market. However, the implementation of this plan will depend on the supply of related parts and components of Hyundai Motor Co., Ltd. After Russia's Taganrog Automobile Factory had delayed the assembly of the model due to the supply of spare parts of Hyundai Motor Company.

Competitors with the same cargo capacity as South Korea's Hyundai Porter light commercial vehicles belong to the black cargo trucks of Russia's Gorky Automobile Factory and similar products from China, but the former is of lesser quality and the latter has not yet formed a climate. If the quality of the black gondola trucks at the Gorky Automobile Plant in Russia cannot go up, China's light commercial vehicles will undoubtedly expand its market share, and the black gondola trucks at Russia's Gorky Automobile Factory will soon be eliminated.

The Russian Gorky Automobile Plant faces the "black hand" and a Russian company called "INKOM-AUTO" is creating a car supermarket selling products of rivals of the Russian Gorky Automobile Factory's GAZEL light-duty truck - the Chinese-made Isuzu Lightweight Commercial vehicles cover 900 to 10 tons of Class B to Class C trucks. Russian "INKOM-AUTO" company has become the exclusive agent of the above-mentioned Chinese automotive products, and has already completed the certification and crash test of the relevant Chinese models. The test results are obviously better than similar Russian products.

However, the GAZEL light-duty truck of Russia's Gorky Automobile Factory will not soon disappear from the Russian market. Although it is not considered to be of any quality, the sales volume is still considerable. The Russian Gorky Automobile Plant also regards the consolidation of the commercial vehicle market as one of its preferred development directions, and does not intend to hand over the subdivision market of light commercial vehicles. In 2008, the plant will start producing Maxus series light commercial vehicles in Nizhny Novgorod, Russia, and at the same time, they will produce these models at the LDV van-type truck manufacturing plant in Birmingham, UK. On August 1 last year, the Russian Gorky Automobile Factory spent 50 million pounds (93 million U.S. dollars) to buy a loss-making Birmingham LDV van-type truck manufacturing plant. According to the plan, 6,000 Maxus series light commercial vehicles will be produced in 2008 and gradually reach more than 10,000 in the next few years.

From the perspective of car sales over the years, the Russian Gorky Automobile Factory has been on the whole in a good development trend in recent years. In 2004, the plant sold a total of 141,000 cargo vehicles. In 2005, this number was 141,500, which was increased to 165,100 in 2006. It is worth mentioning that in 2006, the Russian Gorky Automobile Plant acquired the Birmingham LDV van truck manufacturing plant in the United Kingdom, which will help the company master the advanced technologies of Europe and attract the world's auto parts giants. Russia's Gorky Automobile Factory intends to greatly improve product quality in the near future.
There are two reasons for the rapid development of the Russian light commercial vehicle market in recent years: Russia's small and medium-sized businesses are very active and there is a demand for larger light commercial vehicles. Secondly, Russia’s imports of used cars have decreased in recent years and promoted the use of new vehicles. demand. Because of this, the Russian light commercial vehicle market has attracted the interest of many manufacturers around the world and they have launched a new offensive against the Russian light commercial vehicle market.

Overall, the light commercial vehicle market dominated by the Gorky Automobile Plant in Russia is quietly changing. The market's focus is also shifting towards more fuel-efficient light commercial diesel vehicles. This is a Chinese manufacturer of light commercial vehicles interested in exporting to the Russian market. It should be noted.

Experts pointed out that competition in the Russian light commercial vehicle market will become fiercer in the coming years. In 2006, foreign brand commercial vehicles sold 20,600 vehicles in Russia, which was almost double that of 2005's 1.02 million.

There is no doubt that the Russian light commercial vehicle market will also show rapid growth in the next few years, and it is true that this segment of the market should have a good shot.

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