In the past Global Industrial scenario, Russian automotive industry lagged way behind the automotive industry in several industrially advanced nations like U.S and Japan in terms of the number of units produced, quality production and customer service. However, today, the automotive industry in Russia paints a completely different picture. It is one of the largest industrial sectors in Russia and is one of the growing industries in the country. Today, Russia ranks as the 6th largest country in terms of sales volume of automobiles. According to government statistics the automotive industry is one of the leading contributors to the country’s GDP. It accounts for 3% of the National GDP.
Major Benefits of Investing in Russia’s Automotive Industry:
- Russia has a strong currency, Rouble.
- The Disposable income among general public in Russia is continuously on the rise.
- People have easy access to car finance.
- Studies have suggested the average life span of a car in Russia is about 10 years. This implies that the demand for new cars among Russians in high.Cities like Moscow, St Petersburg, Kaliningrad and Togilatti have the essential infrastructure facilities for the growth of automotive industry.
- The total amount of investment in the Automobile sector in Russia is slated to increase u to US $7 billion by 2012.
- Leading automobile makers in the country have agreements with 49 other leading car makers across the globe.
- The automotive market in Russia promises great potential for healthy competition within the local economy.
- The government provides all possible support in terms of providing infrastructure and technical assistance to investors investing in the Russian automotive industry. The government has investor friendly rules to help easily set up a business.
- The government has easy car registration rules that motivate people to buy cars. This is a great plus for investors to invest.
- People of Russia are always on the look out for new models of cars, they want constant innovation in car models. Thus, there is a great opportunity for car makers to invest in Russia.
- One of the most distinct advantages of investing in Russian automotive industry is the major chunk of Russian automotive market is dominated by foreign car manufactures manufacturing in Russia. Foreign cars manufactured in Russia is more popular that car manufactured by domestic car makers.
- Industrial analysts are of the opinion that the production of foreign cars in Russia soil is set to increase significantly.
Thus, owing to the above mentioned benefits, Russian automotive industry offers a fertile ground for investing in the country. Investors investing in the country can rest be sure to gain tremendous profits.