The Foreign Auto Industry Is Gradually Reducing Its Presence In Russia

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The foreign auto industry is gradually reducing its presence in Russia
  Import of passenger cars to Russia, as reported by the Federal Customs Service of the Russian Federation , is shrinking. This leads to the fact that Russians increasingly give preference to locally assembled models. 

According to the data of the Federal Customs Service of the Russian Federation, for ten months of the current 2021, the import of passenger cars to Russia decreased by 20.3% (compared to the APPG). This became especially noticeable against the background of the economic crisis observed - more and more of our compatriots prefer buying a Russian-assembled car, and, according to experts, the trend will continue for a certain time, which will be required to stabilize the exchange rate and get out of the crisis.

The foreign auto industry is gradually reducing its presence in Russia

The current conditions are most suitable for the growth of popularity of products of both Russian brands and foreign cars assembled in Russia. Note that in the country's auto industry in 2021, 75.5% is the production of cars of foreign brands at localized enterprises. It can be compared with the data for 2008, when the indicator was only 40.4%.

Presumably, more foreign car manufacturers, as well as companies that produce components, will soon start investing in the localization of production in the Russian Federation. In addition to the growth in the number of enterprises, the degree of localization should also grow, under which foreign cars will not only be assembled, but literally created at the facilities of Russian factories.

The foreign auto industry is gradually reducing its presence in Russia

divisions of Skoda. So, in October 2021, the share of Czech cars in Russia increased to 3.8%, sales showed a 5% increase, reaching 7,440 copies (which is an achievement in such difficult economic conditions).

Recall that Skoda has been assembling Octavia and Fabia models at the Kaluga plant for several years, and the plant in Nizhny Novgorod is engaged in the production of the Yeti SUV. Of course, the number of brand cars sold in Russia was also influenced by recycling and trade-in programs, special lending conditions at reduced rates, expansion and renewal of the model range.

The foreign auto industry is gradually reducing its presence in Russia

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