U.S. Automotive Parts and Components Business Development Mission to Russia

The U.S. Department of Commerce, International Trade Administration, U.S. and Foreign Commercial Service (CS), is organizing an Automotive Parts and Components Business Development Mission to Russia on April 22 – 28, 2012. Led by a senior Department of Commerce official, this mission is designed to provide an opportunity to explore Russia’s rapidly expanding car and truck assembly market to a diverse cross section of companies selling goods and services into the automotive sector.

Where?

Moscow, St. Petersburg and Samara, Russia

When?

April 22 – 28, 2012

What?

The U.S. Automotive Parts and Components Business Development Mission to Russia will provide U.S. automotive companies a timely, efficient and cost effective opportunity to explore current business prospects in Russia. The Mission program will begin in Moscow and include site visits and consultations in St. Petersburg and in Samara and Togliatti. In addition to market briefings by industry experts, the mission program will include opportunities to meet key Russian Government officials and decision-makers, one-on-one meetings with potential business partners and site visits to automotive assembly plants and component manufacturers.

Who?

Targeted automotive sectors are:

  • components for vehicle manufacture
  • replacement parts
  • aftermarket products
  • repair equipment
  • capital equipment used for vehicle manufacture
  • testing equipment
  • software and engineering services

Although focused on the sectors above, the mission also will consider participation from companies in other appropriate sectors as space permits, and the itinerary may be adjusted accordingly.

Why?

As the richest of the BRIC countries, with over 140 million consumers and a growing middle class, Russia remains one of the most promising markets for U.S. exporters. Sales of cars and trucks in Russia are currently growing at an annual rate of 30 percent. In 2010, Russian customers purchased 1.9 million cars. This figure includes 646,000 new Russian cars and 1.25 million foreign cars, both imported and produced in Russia. Importers forecast continued rapid growth of approximately 20 percent in 2011. If these trends continue, most experts project Russia will be the largest automotive market in Europe in the next few years.

Foreign automakers have taken notice of the Russian automotive market’s potential for significant growth and are building assembly plants to meet the increasing Russian demand for high quality automobiles. General Motors has a $335 million plant in Togliatti, a joint venture with Russian auto giant AvtoVaz that produces an inexpensive SUV, under the Chevrolet – Niva brand, which is based on an AvtoVaz-designed platform. Ford opened its first assembly plant in Russia in 2002 near St. Petersburg. The plant has a capacity of 125,000 vehicles and currently produces two models – Ford Focus and Ford Mondeo. In 2010, the Ford Focus was Russia’s most popular foreign car, and its 5th top seller overall.

In addition to Ford and GM, major international OEMs have made significant investments in St. Petersburg and surrounding Leningrad oblast, turning it into a new automotive assembly “cluster.” Nissan, Toyota and Hyundai opened new plants in St. Petersburg or in Leningrad oblast between 2007 and 2009. Given the current dynamics in this automotive sector, the U.S. Commercial Service strongly believes that significant opportunities for growth and expansion exist in Russia for U.S. manufacturers of automotive parts and components. Russians are prepared to pay for quality vehicles, while at the same time the Russian automotive manufacturers and the Russian government are seeking technology and business partnerships to meet this demand.

Moscow, Russia

Application Deadlines and Fees

Recruitment for the mission will close on January 20, 2012. Applications received after the deadline will be considered only if space and scheduling constraints permit. After a company has been selected to participate in the mission, a participation fee paid to the U.S. Department of Commerce is required. The participation fee for one company representative will be $4,652 for small or medium-sized enterprises (SME) and $5,401 for large companies, which will cover one representative. The fee for each additional firm representative (large firm or SME) is $1,220. The participation fee covers all in-country travel – airport transfers and bus transportation to/from group meetings and site visits, train fare from Moscow to St. Petersburg, airfare from St. Petersburg to Samara and from Samara back to Moscow, as well as one-on-one meetings with potential Russian business partners. The Commercial Service will assist in booking hotels at favorable rates, but lodging costs, meals and incidental expenses will be the responsibility of each mission participant.

Contacts

Eduard Roytberg
Automotive Team Leader, CS Ontario, CA
Tel: 1 (909) 466-4138
FAX: 1 (909) 466-4140
Eduard.Roytberg@trade.gov

Kenneth C. Duckworth
Principal Commercial Officer, CS St. Petersburg
Tel: 7 (812) 326-2560
Tel: 7 (812) 326-2561
Kenneth.Duckworth@trade.gov