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Strategic Overview of Automotive Aftermarket in Russia, Forecast to 2024

  • Report

  • 59 Pages
  • December 2018
  • Region: Russia
  • Frost & Sullivan
  • ID: 4721856

Parts Replacement Revenue to Grow at a CAGR of 6.4% by 2024

This research study provides the growth prospects for the Russian automotive aftermarket, covering the Class 1-3 vehicles aftermarket in terms of volume (million units) and value (€ million). The base year for analysis is 2017 and the forecast period is 2018–2024. It includes analyses of vehicles in operation, new and used vehicle sales, and parts replacement revenues in the automotive aftermarket. The study discusses industry challenges and the growth opportunities offered by new and used car markets in the aftermarket ecosystem. It also includes the profiles of major aftermarket participants such as FIT service, Lada, Exist.ru, Emex.ru, Autodoc, Euroauto, and Autocity.

Plunging oil prices, combined with international sanctions imposed on Russia, pushed the economy to a mild recession in 2015. The economy is on the road to recovery; however, the growth rate is expected to be moderate during the forecast period. Slow economic growth and reduced purchasing power lead to an increase in used vehicle sales and high concentration of >10-year-old vehicle parc. These vehicles have higher service requirements. Moreover, the rough terrain and harsh climatic conditions further increase the wear and tear of vehicles components such as suspension, brakes, tires, filters, and other components. This increases the revenue potential for aftermarket participants.

The automotive sector is favored by various state support mechanisms such as scrappage schemes, trade-in programs, auto credit, and leasing subsidies. These schemes were effective to a certain level during the crisis period and, if extended, will benefit the auto sales market and bring it back to the pre-economic crisis levels in the long-term period.

The introduction of various state measures such as tax exemptions and subsidies for logistics and certification procedures aims to drive localization and increase the level of automotive exports from Russia. These measures, coupled with low currency valuation, will make it profitable for foreign OEMs to establish production bases in Russia and increase their exports to European and Eurasian markets. This will further benefit the components ecosystem, as local suppliers are expected to collaborate with foreign manufacturers to gain the technical know-how involved in the manufacture of complex auto components.

Key Features

  • Estimate the total market opportunity based on a top-down analysis of vehicles in operation, replacement rates, and available pricing data
  • Identify the top automotive parts distributors and service providers in the Russian automotive aftermarket
  • Identify the growth opportunities and challenges that exist within the Russian automotive aftermarket and how they would impact the market participants

Key Issues Addressed

  • What is the short to medium-term outlook for the Russian automotive aftermarket?
  • What is the structure of the Russian automotive aftermarket? Who are the key industry participants?
  • Which are the products and services that will offer the highest growth opportunities?
  • How is the competitive landscape changing and how is it expected to evolve?

Table of Contents

1. Executive Summary
  • Key Findings
  • Automotive Aftermarket Profile-Russia
  • Parts Size-Russia
  • Key Findings and Future Outlook-Russia

2. Research Scope, Objectives, Segmentation, and Methodology
  • Research Scope
  • Research Aim and Objectives
  • Key Questions this Study will Answer
  • Vehicle Segmentation
  • Research Methodology

3. Market Overview-Russia
  • Macro-economic Overview
  • Country Highlights
  • Key Policies and Regulations

4. Demand Analysis and Influencers-Russia
  • New Vehicle Sales Analysis and Outlook
  • VIO Forecast
  • Used Car Sales Analysis
  • VIO by Age
  • VIO by Brand
  • Key Growth Drivers

5. Parts Analysis
  • Replacement Rate of Select Parts
  • Manufacturer-level Replacement Parts Revenue

6. Distribution Channel Analysis
  • LV Aftermarket-Percent Revenue by Distribution Channel
  • LV Aftermarket-Key LV Distributors in Russia
  • FIT Service-Company Overview

7. Key Suppliers
  • LV Aftermarket-Key Suppliers

8. Key OEM Strategies
  • OEM Strategies
  • LADA’s Presence in Aftermarket
  • Hyundai Service and Aftermarket Strategy
  • New Business Models and Technology

9. New Aftermarket Business Models
  • eCommerce and Online Retail Definitions
  • Exist.ru-Company Overview
  • Emex.ru-Company Overview
  • Autodoc-Company Overview
  • Euroauto-Company Overview
  • Autocity-Company Overview
  • Lada-original-Company Overview

10. Growth Opportunities and Companies to Action
  • Growth Opportunity-Increased State Support and Economic Recovery
  • Strategic Imperatives for Success and Growth

11. Conclusion and Future Outlook
  • Key Conclusions and Future Outlook
  • The Last Word-3 Big Predictions
  • Legal Disclaimer

12. Appendix
  • List of Exhibits

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Autocity
  • Autodoc
  • Emex.ru
  • Euroauto
  • Exist.ru
  • FIT service
  • Lada