By European Plastics News Staff
Total investments in auto parts production in Russia is forecast to hit Euro 4.4 billion ($5.5 billion) by 2020, according to the country's Ministry of Industry and Trade.
According to Alex Rakhmanov, deputy head of the Ministry, up to 150 auto production plants are expected to be established in Russia in the coming years, most of which will be financed by foreign investments.
According to Rakhmanov, the average payback period of these projects is expected to be in the range of four to seven years, whereas the volume of investments will range from Euro 8 million to Euro 80 million.
In 2011 the Russian market of auto parts reached Euro 33 billion in value terms. In the short term, the market is expected to grow by 20 percent to 30 percent per year, mainly due to an increase of local auto production and local autofleet.
So far, the majority of auto parts have been supplied to Russia from abroad, but in recent years the share of locally made auto parts has significantly increased.
However, local auto parts producers - total number is currently estimated at 2000 - are still unable to compete with foreigners and so mainly specialise in the production of low-tech products and parts.
Experts estimate that Russia's technological level in auto parts' production lags behind their foreign counterparts by 30-40 years.