The A – Z of Inside The Mind of Russian Truck Customers

Publish Date : February, 2020

Russian Truck market remains the most massive Truck market in Europe. It registered a 2% degrowth in 2019 compared to 2018, because of the higher worth realization of used trucks by the customers. The used truck market additionally registered integer growth in 2019 compared to 2018. 13,800 buses were oversubscribed in Russia in 2019, which is 6.3% more than the amount of 2018. The leading cities Moscow, St. Petersburg, etc are the key drivers for the bus sales growth. In the premium section, Volvo, Mercedes, DAF are the most popular brand and in Russian, Kamaz and GAZ are the popular brand’s names.

Russian Truck Market Trend and Forecast 2024

CAGR between 2013 to 2015 was 32%, from 2016 to 2019 it was 16% and the forecast for the next five years represents an increase of 2%.

As per Rosstat, Russia’s gross domestic product grew by 1.3% in 2019. It’s expected that the gross domestic product grew by 1.35 in 2019. It’s expected that the gross domestic product growth is going to be beneath 2% in 2020 and 2021, which compares with an official distension rate of 2.5% recorded in 2018 and was that the weakest annual growth since Russia emerged from the financial condition in 2016.

Manufacturing Production in Russia enlarged 3.90% in Jan of 2020 over an equivalent month within the previous year.

Russia has enlarged its transport infrastructure defrayment commit to seven trillion roubles ($110 billion) for the future 5 years. Hoping that enormous investment and infrastructure outcome can boost the sluggish economic process. Russia’s financial organizational has cut interest rates by 25 basis points to 6.25%, the fifth-rate cut in 2019 and its lowest level since before the 2014 Russian money crisis.  Oil costs slump and coronavirus impact has an effect on the Russian economy for the brief term. In recent weeks, as china reports additional infections the rate for the ruble had a swayback.

The three queries shaping the Russian trust market:

  • What is a suitable product for sales and purchase
  • What is the suitable price range which comforts consumers according to their preference
  • Is it an alliance or partnership OEMs

Russia continues to be a coffee price market and this can be the benefit for native OMEs like Kamaz or GAZ to fulfill the client’s needs, However currently massive fleet owners began to expect additional advanced trucks and prepared to procure higher specs.

Russia continues to be a coffee price market and this can be the benefit for native OMEs like Kamaz or GAZ to fulfill the client’s needs, However currently massive fleet owners began to expect additional advanced trucks and prepared to procure higher specs.

Long haul truck and Traction truck are the key segments for nearly all OEMs. The native OEMs are attempting to create a balance between technology and supply value.

Foreign players are begun to dominate some specific truck transportation sectors like Inter European transportation, Bulk wood transportation, and mining section. Daimler is penetrating the Russian truck market through the jointly developed product which varies with Russia’s prime producer of heavy freight trucks, Kamaz. This product is principally targeting the budget truck sector in Russia. The company additionally acquired a 15 % stake last year to stay an eye on future strategy in the CIS region. Kamaz oversubscribed around 30,504 trucks in 2019 and expected to sell 29, 000 units of trucks in the domestic market and around 6,709 units for export in 2020.

Domestic players like Kamaz are attempting to penetrate the additional traction sector by significant products like KAMAZ 5490. European OEMs are the main players during this section. Kamaz is attempting to decrease the truck break down the level and increase driving comfort by joint development with Daimler. Kamaz is the market leader in more than 14T GVW sections such as Kamaz 43118, 5490,65115,6520(Tipper), Mercedes actors, Volvo-FH &FM, New-gen MAN TGX & DAF XF product arrives in the prime portfolio.

Behavior and qualitative analysis of customer purchase:

In our study, we tend to have an extended discussion with Russian fleet managers/ decision-makers regarding their demand and “why they like specific truck models“. The Russian truck market dynamics are completely different from alternative rising markets like China, Brazil, and India.

In our study, we’ve got compared regarding the whole perception of Premium (European), Chinese and Russian brands underperformance, variations, quality, reliability, TCO, product life cycle, target section & appropriate application.

We have conducted this study in four major Russian cities. They had completely different purchase aspects and at the end of the day, the result concluded that in traction sector TCO, reliability and quality after-sales are prime three parameters out of ten in purchase criteria.

Russian truck segment and mapping with target customer segment

The Chinese brand is most popular among the clients because of its low value, overloading capability, up to service network and quality. The major reasons for purchasing Russian products are simply fixable, strong vehicle & road capability advantage. The European brands position themselves as prime quality, performance, extreme reliability, and user-friendliness.

Key Truck Purchase criteria in Russian Truck market

Fuel consumption, driving comfort, service after sales are playing a crucial role to shop for traction trucks. Used premium trucks meet these consumers’ expectation and it also comforts the driver’s trip to central European countries. However, the key challenges in the Russian ground are lifecycle, product history, High maintenance, cost of repair and product compatibility.

Key highlights of the report:

  • Russian Truck market Trend (Market size) and Forecast 2024
  • Model wise Truck sales, Production, Export, Import, Engine, Transmission, Production plant, Model nameplate, Key Application, and Price point
  • Truck Segment Analysis – Light Duty Truck, Medium Duty Truck, and Heavy Duty Truck
  • Customer (Fleet Owner) survey – Qualitative analysis
  • Low cost, Budget, and Premium Truck segment – Price, Specs, features, Product life cycle, Forecast, TCO
  • Truck Application Analysis – Dump truck, Traction, Haulage, Special Application etc
  • Truck Price Analysis
  • Competitive analysis – Asian, European, and American brands
  • After-Sales Analysis
  • Brand Strategy, and Product Position
  • Key Economy indicators Forecast

 

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