Kaliningrad Avtotor substituted Chelny seats with Korean ones that are 2.5 times cheaper
Outdated domestic technologies inhibit the development of the localisation of automotive components
Due to the crisis, the domestic automotive industry has headed to the localisation, and over the past year many representatives of the industry have already achieved some progress. Nevertheless, the purchasers claim about some problems: lack of necessary technologies, inadequate quality of automotive components and that prices are significantly higher than foreign ones. Details – in the report of Realnoe Vremya from International Forum TIAF.
Opportunities at a million during the crisis
For the second year, the localisation problem is the main theme in Kazan at the Tatarstan International Automotive Forum (TIAF). Last year, the automotive manufacturers hoped for the placement of localized components in Russia and declared that in this matter there were certain limitations, including the inability of our engineers to develop a number of technologies. By the way, after a year, the situation has not changed.
According to Aleks Zaguskin, a former Vice-President of JSC Sollers and Russian machines, now the domestic market is shrinking, but at the same time, Russia is becoming quite an attractive export market. Local producers in the current situation are more focusing on localisation in order to get rid of the monetary component, which can be a good stepping stone for the future, when the economy eventually stabilizes.
Major purchasers (Ford Sollers, purchasing organization AVTOVAZ-Renault-Nissan (ARNZO) and Kaliningrad Avtotor-Holding — the producer of KIA, BMW, GM, Hyundai — editor's note), the speakers at the Forum, hold the same opinion.
'We are getting very competitive in the world market. For example, over the past year, my department worked with six suppliers and they all supply components for AvtoVAZ, Renault and Nissan and have begun to export their components to Turkey, India, Romania. Soon, there will be a flow of exports to the United States. All manufacturers, that have the technologies and desire, have opportunities,' said Dmitry Dyachkov, the head of the department ofthe purchaseof components of power-generating set at ARNZO.
According to Dyachkov, the representatives of businesses already now can get ample opportunities. So, turnover from direct import can amount to 200 million rubles, and turnover of second-tier suppliers can reach 1500 million rubles.
Deplorable example of General Motors
In 2015, many of them managed to achieve good results in the localisation process. For example, for a number of cars Ford Sollers there are about 300 localized components and slightly more than 70 Russian suppliers. All these have allowed the company to report over the past year at 45%.
'For example, General Motors, that has abandoned Russia, lost almost half a billion dollars due to its leaving. We decided that it is better to channel funds to localisation of components. We like our foreign partners, but we are more interested in other tactics,' said Nikolay Khodosevich.
Kaliningrad Avtotor also has succeeded in localisation. According to Vladimir Dlugokasky, a director of department on localization, a large percentage of the components at the site of Avtotor was brought by the manufacture of vehicle seats.
For several years, we have been negotiating for the production of this component with one very famous company located in the Kama region. We were ready to buy seats from Chelny, but due to extremely high prices it didn't work out. I can tell that in compare with Korean products, their price was higher in 2.5 times,' said Dlugokansky.
Vladimir Dlugokansky: 'For several years we have been negotiating for the production of this component with one very famous company located in the Kama region. We were ready to take seats from Chelny, but due to extremely high prices it didn't work out.' Photo: cplit.ru
Lagging Russian technologies
Beloved by all the participants of the Russian automotive market localisation faces a number of insurmountable problems. The main one is the lack of a number of technologies.
'Unfortunately, we have no precise mechanoprocessing of aluminum components – because of this we are forced to invite import suppliers who put plants in the free economic zones. For example, in Tolyatti there was invited and localized the company CIA, which produces aluminum components and supplies directly to AvtoVAZ to assemble the gearbox. And this is all because in Russia there is no suppliers who are able to do it. If somebody at the forum will learn these technologies, then, welcome!' addressed to the audience Dmitry Dyachkov.
The situation is similar with the plastic components resistant to high temperatures. Everyone can produce plastic, but such technology is not yet available in our market.
Speaking about high-precision gear machining, the technologies has gone beyond, as a result, Russia needs partners that would help to master this technology.
Another weak point – is the production of the electronics and complexes of automotive brake and steering systems. Products, offered in our market, often do not meet the expectations of the consumer.
The Director on procurements of Ford Sollers also said that we urgently need to provide the industry with modern laboratory equipment, as suppliers have to carry out tests of materials abroad.
'Because of this, a lot of time and money is spent. Our equipment does not meet the essential requirements. By the way, now in this direction the project jointly with Tatarstan is developing in order not only our region but also other suppliers could use this base,' added Nikolay Khodosevich.
Example to follow — Kama industrial region
'Despite several complaints against the current state of the domestic automobile industry, the purchasers do not lose the optimistic attitude. Actually, now we have much more opportunities for realization of particular projects. But, everything should be done on Russian basis, using Russian materials. We need to improve our own production, to bring it back to normal, not just to get rid of it and buy something new,' said Dmitry Dyachkov.
According to the representative of Kaliningrad Avtotor-Holding, we shouldn't evade the problems – we should get involved in its resolution. As an example, Dlugokansky said about Kama industrial region, which due to its work makes a significant contribution to accelerating the development of domestic manufacturing industries.
'Also, for deeper localisation it is necessary to conduct research works, a series of tests. Also, we need technical support from components' supplier,' summed up Vladimir Dlugogansky.