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Undeniably, huge potential for growth exists in Russian automotive industry. Prominent western players, including FORD & GM, have already ventured in this sector. However, further opportunities continue to open up for both the manufacturers as well as component suppliers in this sector.

Growth in Russian automotive industry will have a significant impact on the growth prospects & restructuring in Central East Europe. Though largely unsuccessful yet numerous attempts have been made by foreign investors to enter the Russian market during the past decade. However, a few joint ventures are making a gradual progress in this market.

Today, Russian producers such as AvtoVaz, GAZ or SOK make up for more than 70% of current market demand in the country. However, international carmakers are anticipated to account for 60% of all new cars sold in the country by the year 2014. As, Russian market is bound to open up after the country gains entry into the WTO. Russian consumer preferences are turning towards global standards & spending power of people living in the country is also increasing.

Mainly two things are needed for continued growth in the automotive market in Russia. Firstly, automotive companies must device workable strategies & targeted management. Secondly, a stable economic and legal framework is required in the country if it wants to take advantage of low labor costs and the size of its economy.

To conclude, Russia is emerging as a main automotive base for exporting both the vehicles as well as components to the rest of the world.

To read more about the Russian automotive industry you can read the report "Russian Automotive Industry Forecast (2006-2011)" available at http://www.rncos.com/Other%20Industry.htm.

RNCOS is a leader in the field of online business research and specializes in industry research on various business verticals. To read our other reports, please visit us at http://www.rncos.com/Report.htm or email us at info@rncos.com

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