It is not long ago Europe's biggest market, Russia had become a member of WTO. This inclusion is about to bring into the play some interesting developments in Russia's Truck Market.
Russia becoming a member of WTO had opened doors to international players in Russian truck market. This will have a huge impact on Russian Truck Industry. The days of imposing heavy import duties (tax) on new as well as used vehicles are now gone with the wind. Now the other European and Asian OEMs can make their vehicles at competitive price compared to domestic OEMs. We believe European OEMs will get direct advantage of this new scenario
The Chinese players had a market share around .05% but in 2012 they are having around 8% market share where European players had a more than 40% market share now compare to 2005 with 37% market share.
Russian Domestic players market share come down from 96% to 58% in 2012. Russia Produced 81,803 units of heavy trucks in 2011 while 60,071 units in 2010, which is an increase of 36.2%. LCV production was 121,528 units in 2011 while in 2010 it produced 148,318 units at an increased rate of 22.0%.
European player like MAN and DAF has established their own manufacturing unit in Russia. While Daimler is having joint venture with Kamaz to tab Russian and CIS market.
Russian GDP is expected to grow by 4% in 2012 (4.3% in 2011). Inflation is expected to be 4.8% in 2012. Unemployment rate is biggest challenge for Russia and it is now around 6%.
