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AutoEvolution 2018. Kaluga Region has 10% export share in Russian automotive industry.

Production Placement Application

10.10.2018

IX International Forum on Development of Automobile Manufacturing and Innovation Infrastructure in Russia AutoEvolution 2018 opened on October 10, 2018 in Kaluga. AutoEvolution Forum gathers representatives of federal and regional authorities, state corporations, development institutes, manufacturers of cars, trucks and automotive components, managers of infrastructural and innovative projects in order to discuss prospects of automotive industry development in Russia. Alexander Morozov, Deputy Minister for Industry and Trade of the Russian Federation, Dmitry Kurochkin, Vice-President of Chamber of Commerce and Industry of the Russian Federation, Anatoly Artamonov, Governor of Kaluga Region, Marcus Osegowitsch, Director General of Volkswagen Group Rus, Georgy Rotov, Director General of Continental Kaluga took part in the discussions.

During plenary session Automotive Industry in Russia: Prospects, Trends, Key Challenges. Future Forecasts, automotive industry representatives held discussions on scenarios for the industry development. Anatoly Artamonov, Governor of Kaluga Region, noted in his welcome speech that the forum successfully developed and became more and more popular, engaging more and more new participants for professional dialogue. “We are open for interaction within the framework of the automotive cluster development. Cars and trucks production volume is growing. Manufacturing of cars and trucks in Kaluga Region over 8 months of this year reached in quantitative equivalent the volume achieved over the entire 2017”, – said Anatoly Artamonov.  

As Alexander Morozov noted, higher localization level is the cornerstone for the development strategy of Russian automotive industry. “The Government of the Russian Federation will pay attention to the issues related to engines and driving machines, transmission and control systems. Special attention will be paid to R&D. Share of proceeds is relevant, which a company is ready to spend for research and development activities in the territory of the Russian Federation. Principal growth areas are creation of automotive components production and development of export. Kaluga Region is an expert for us in these areas,” – Alexander Morozov added.

According to the results of 2017, export in automotive industry amounted to USD 3.15 bln. “Kaluga Region has a 10% export share in Russian automotive industry. This includes not only manufacturing of cars and trucks, but also manufacturing of automotive components. This is a very good indicator.” – Pavel Burlachenko, Director of Export Support Department (automotive industry and railways industry), Russian Export Center, noted.

Speaking about financial support measures for automotive industry, Pavel Burlachenko paid attention to certain modifications: “First of all, this refers to integrated export project that a company intends to implement. From 2019 onwards, we expect optimization of measures and formation of integrated programs aiming at the product development.”

Today, Kaluga automotive cluster is represented by OEMs – Volkswagen, PCMA (Peugeot Citroën & Mitsubishi Alliance), Volvo and a pool of automotive components’ manufacturers, these are 28 companies, many of which cooperate with traditional regional enterprises. Therefore, automotive cluster consolidates 31 companies and it manufactures more than 11% of cars and trucks produced in Russia. Its share in the total regional industrial production volume is 36%. Index of production for motor vehicles over 6 months of 2018 is 157.2%.

Kaluga manufacturers of automotive components manufacture almost the entire range of units and parts, satisfying production needs of automotive assembly plants, both regional and those operating throughout Russia. Every year, companies of Kaluga automotive cluster increase their export supplies abroad.    

For example, Continental Kaluga exports its products to 23 countries worldwide. The company has a very good reputation among global Continental production network thanks to the quality of its products. Corporate award for the best quality in 2017 became recognition of the plant’s success.  

Volkswagen Group Rus plant recognized as the best 2017 exporter by Russian Automotive Forum awards. Marcus Osegowitsch highlighted that Volkswagen Company continued its investments in Russia: “We are proud of success made by Volkswagen Group Rus Plant in Kaluga. It refers not only to localization, but also to the higher efficiency of logistics. Polo model is localized at 75%. Volkswagen plant has already exported its 38,000 engines manufactured in Kaluga over 2018 to countries worldwide. More than 10,000 Skoda Octavia cars were exported in 2018.”

According to the first half of 2018 results, Volvo Group plant in Kaluga increased production of Volvo trucks approximately by 25% as compared to the same period of 2017. 70-80% of Volvo trucks sold at the Russian market over the last years is of Kaluga origin.

The following trend is evident in the Russian automotive industry – leaders of automotive market demonstrated strong growth of sales. There is a growing demand for products of Kaluga automotive cluster; Volkswagen Polo, Skoda Rapid and Volkswagen Tiguan are in Top-20 popular models in Russia, their sales grew by 20%-30%.

Excursions to the plants of Kaluga automotive cluster scheduled for the second day of Forum activities.

Partners of AutoEvolution 2018 International Forum: Volkswagen Group Rus and Continental Kaluga. Media Partner – Digital Age of Transport Association.