How to open the biggest market of auto parts in Central Asia and Eastern Europe

— Analysis of Auto parts industry in Russia

1 The market background   

Russia is located in the north of Eurasia, spanning the two continents, with a land area of 17,075,400 square kilometers. It is the largest country in the world, with the world’s largest reserves of mineral resources and energy resources, and the largest exporter of oil and gas.  Russia’s oil prices are low and there are no surcharges for long journeys.  According to the map, The latitude span of Russia is relatively large, covering 30 latitudes from north to south and 150 degrees from east to west.  In the south, Russia is adjacent to China, Mongolia, Kazakhstan and other countries. In the west, Russia is adjacent to Finland, Ukraine and other countries.  From the terrain, Russia’s domestic plains, platitudes more terrain.  


The vast geographical space, human geography environment makes the far East people’s demand for cars become a kind of inevitable, Russia’s unique way of life, namely every weekend, city residents have to suburban villa, to adapt to this traffic demand, Russia’s general family as long as the expenditure is allowed, always want to do everything possible to buy a car.  The growth rate of new car consumption in Russia’s domestic car market is relatively low, and old and used cars have occupied more than half of the country.  Therefore, the Russian auto parts supplies in great demand.  And the supply of parts of the original factory is insufficient, leading to people are more inclined to choose affordable and high-quality parts.  In 2018, Russia made a policy to restrict the use of right-tiller, requiring residents to switch to left-tiller within two years.  But the Russian market is dominated by right-wheelers, which means there are quite a few cars that need to be replaced or modified.  Although the use of right-rudder cars has not been completely banned up to now, the implementation of policies such as raising automobile import tariffs and providing

02  Sino-russian economic and Trade Relations   

China and Russia established the strategic partnership of coordination in 1996 and signed the Treaty of Good-neighborliness, Friendship and Cooperation in 2001. On June 5, 2019, china-Russia relations were upgraded to the comprehensive strategic partnership of coordination for a new era.  China has been Russia’s largest trading partner for many years.   

03  Analysis of Russian vehicle and auto parts export   

The Russian auto market reached a low point in 2016, with year-on-year growth of 11.9% in 2017 and 12.8% in 2018. In 2019, it reached 1.78 million units, down 2.3% from a year earlier. Analysts said: “As the market starts to recover from three years of recession, the Russian auto industry is slowly becoming more confident.”  bd76c6f27fd5485f9d654aaf5f482577

In 2019, Japanese and Korean cars and Russian cars dominated the Russian market, with prices ranging from 60,000 to 120,000 yuan.  The development of domestic auto parts market and customer demand are relatively stable, and the inventory is rarely short. In the market of imported auto parts, due to the increasing number of imported cars in recent years, the demand is constantly increasing, and the original factory can not quickly meet the demand of consumer market for auto parts, which often leads to the shortage of stock.  At present, the Russian imported car parts market has the highest demand for parts of Japanese models. Toyota, Honda, Mazda, Nissan and other Japanese cars are widely popular in The Russian market due to their high quality and low price.  In addition, it is worth mentioning that Lada is Russia’s local car brand, in the Russian auto parts market also has this pivotal position, lada car accessories is also a key to open the Russian auto parts market.  

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Russian imports from the global top three, respectively of the total amount of the automobile products Japan ($419 million), Germany ($393 million), China ($273 million) occupied 15% of the Russian auto parts market, in the third place, mainly due to China’s department of European, American and Japanese vehicle OEM and export performance, also have independent brand depot,  The industrial supply chain is complete, and the layout of Russia has a competitive advantage.  

Statement: This article is written by the author of sohu public platform. Except for the official account of Sohu, the views expressed herein are the author’s own and do not represent the position of  Sohu.