Demand for auto parts in Russia has increased 23 times! Chance for the Chinese companies
Russia auto parts market status quo
Russia as the world's fourth largest car ownership countries, with about 50 million vehicles, a huge number of vehicles, the market potential is huge. This vast land, the cultural intermingling between east and west makes the automobile brand more diversified. The western part of the country has more German vehicles, with brands such as Mercedes-Benz and BMW occupying a certain market share, while the eastern part has more Japanese vehicles, with brands such as Toyota and Honda being popular with the locals.
However, in recent years, due to the impact of war, the Russian auto market is facing many challenges. Sanctions have led to the disruption of the upstream supply chain, which has led to a sharp increase in the demand for auto parts and accessories in the Russian market, which has provided a huge business opportunity for Chinese auto parts companies. The share of Chinese brand cars in Russia's new car market is gradually climbing, reaching 46% in the first half of the year, and is expected to exceed 50% for the whole year, which means that the demand for spare parts is also increasing. And Chinese auto parts enterprises have become the best choice to meet this demand by virtue of their technical strength and price advantage.
As the supply relationship of spare parts between China and Russia deepens, Chinese auto parts companies will continue to innovate and develop more SKUs suitable for Russian models, providing the market with richer choices. With the strengthening of this supply capacity, China's spare parts supply to Russia will become stronger, and the number of suitable models and parts will increase, and the procurement volume will continue to grow.
Image source: The Wall Street Journal
Crisis and Business Opportunities in Russian Auto Parts Market
Under the influence of political war, the Russian auto parts market is facing the challenge of unstable supply chain, but at the same time, it also contains huge business opportunities.
Russia lacks local production capacity for auto parts, and the entire automotive industry is relatively weak and has long relied on foreign imports. This is due to the wide variety of parts, high technical requirements and high dependence on the overall system of the supply chain. In the past, due to the relatively closed market, Russians used to buy German or Japanese parts, and Chinese suppliers have not actively entered the Russian market, resulting in low awareness of Chinese parts among Russians.
However, in the past two to three years, the use of Chinese parts in the Russian market has grown rapidly, Russians have recognized the advantages of Chinese parts, more and more with the Russian market models to adapt to the emergence of parts, which allows Chinese auto parts enterprises have a long-term development of space. Chinese products are gradually recognized in the Russian market, price advantage and quality assurance has become the key to attract Russian consumers. In the long run, Chinese auto parts enterprises will occupy a larger market share in the Russian market and become an important force to promote the development of the automotive industry.
Under the development of new energy, Russia's traditional auto parts industry is strong
Although the development of new energy vehicles is being promoted globally, the demand for traditional fuel vehicles in the Russian market is still very strong. Russia has rich oil resources, oil prices are relatively low, people can buy gasoline at a lower price, and electric vehicles in the energy cost does not have a clear advantage, fuel cars in the local is still the mainstream choice.
Secondly, Russia's climate and geography impose restrictions on the use of electric vehicles. Russia is an alpine country, and in a cold environment, the range of EVs will be affected. At the same time, Russia is a vast country with inadequate construction of charging facilities, which makes it inconvenient to charge when driving long distances. In extremely cold weather, staying outdoors for a long time may cause inconvenience and risk to the use of EVs.
As a result, the auto parts industry's demand for accessories for traditional fuel vehicles will continue to grow, providing a broader market space for Chinese auto parts companies. With the continuous development of the Russian economy and increasing market demand, Chinese auto parts enterprises will usher in a brighter future.
Article from "Exhibition Qingdao"
2024 China (Taizhou) Int'lAUTO PARTS &SERVICE SUPPLIESExpo will be held in 2024.9.19-22,Taizhou International Expo Center(558 Xinhai Road, Jiaojiang District, Taizhou)
Three new energy pure tram technology supply chain display, three traditional auto parts product display NIO, Geely, GAC and other dozens of automakers participated.
