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Hyundai Plant Can Produce 300,000 Car Engines Annually
Hyundai VIA has begun construction on an auto engine plant near St. Petersburg.
Maxim Sakov The enterprise initially plans to make 240,000 engines per year. Then, the capacity will increase, and the plant will make 300,000 Gamma I engines of 1.6 liters.
The project has been established under a special investment contract. The investors “injected” US$185 million (13.1 billion Rubles) into the project. The plant will bring about 500 jobs to the city.
Test launch of the plant is planned in Q1 2021, and mass production is scheduled to start in October 2021. Read The Article
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Kamaz Introduces First Mining Truck
KAMAZ says it has developed and built KAMAZ 65805 – first truck in its new mining truck portfolio. The product line will consist of dump trucks with wheel formula 8*4 and 10*6 and cargo capacity from 45 to 70 tons. The dimensions of the new truck will allow driving on regular automobile roads.
The new KAMAZ is powered by a 12-liter inline KAMAZ R-6 engine of 500 hp, and hydromechanical transmission with retarder.
The truck is introduced as “Autonomous ready,” and can be converted to a driverless vehicle by installing sensors and a decision-making chip.
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Autotor Plant To Suspend Assembly of BMW Cars
Autotor’s Kaliningrad plant plans to suspend assembly of BMW cars from the middle of June to the beginning of July because of a components shortage. This is told by CEO of the plant Ruslan Sadykov.
Stephen Teichert, head of BMW Russia, claims Autotor production capacity has been reduced by about 70%; however, in July the OEM plans to increase production to pre-COVID-19 level. Read The Article
PSR Analysis: The Autotor plant in Russia assembles passenger cars kits for BMW, Hyundai…
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Construction Machinery Sales Could Fall 18%
The market for construction machinery showed good results in Q1 2020, following ruble devaluation and the construction of hospitals. However, it began to decline in April, and the Association of European Business (AEB) expects an 18% decline for 2020 instead of the small growth forecasted earlier.
Maxim Sakov The most significant sales decline is expected for excavators, loaders and dump trucks. Only crawler tractors can avoid decrease, however, it’s still 32.6% worse than pre-crisis expectation.
Experts note that the largest decline is likely to be in more expensive applications, or where existing fleets have larger reserves. In cases where there are no support measures, the decline could be as much as 50% or more.
However, one positive signal is that there are no plans to reduce road construction projects.
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Russia: Assembly of Electric GAZelle LCVs Started in Germany
Sales of electric version of GAZelle Next LCV have begun in Germany. Stuttgart company EFA-S is modifying Russian vehicles. The assembly started this year.
Maxim Sakov The German company purchases LCVs in Russia without transmission, engine and fuel system. Then in Stuttgart they install an electric motor and battery.
Currently, four versions of the electric vehicle are available – a side truck, a wagon, a 2-cabin wagon and a mini-bus. All LCVs are powered by a 110 kWt electric motor and can reach a speed of 88 km/hour.
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Russia: KAMAZ Tests Driverless Trucks in Arctic
KAMAZ driverless trucks have been tested in the Eastern-Messoyakh oilfield in the Nenetsky region. The vehicles were driven 2,500 kilometers without accidents.
Maxim Sakov The joint project of Gazpromneft and KAMAZ was put together with support of region authorities in difficult climate conditions beyond the Polar Circle. The main target of tests was to determine the efficiency of driverless trucks, which would increase safety of cargo transportation and optimize supplies to territories with difficult access.
During the tests, the driverless trucks showed high potential to move on pre-set routes with high accuracy, to exchange information via duplicated communication systems, to recognize obstacles and forecast movements on actual environment.
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Russia Automakers To Receive Special Credits
Twelve automakers in Russia are counting on privileged credits for working capital support of backbone enterprises during the COVID struggle.
Maxim Sakov Under the program, a company must have revenue of US$300 million (20 billion rubles) and employ more than 1000 people. A special bank product has been designed for such companies. The bank interest on this credit will be subsidized within the base interest rate of Russian Central Bank, and half of the credit will be warranted by the Ministry of Finances. Read The Article
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Russia New Car Sales Drop 70% in April
New car sales plummeted by 102,000 vehicles in April, the largest monthly car sales decline in history in Russian, according to the Association of European Business.
Maxim Sakov During April, Russia introduced strict quarantine measures because of the coronavirus, causing car sales to fall by 102,089 units, or 72.4%.
After strong sales in March, dealers have had to suspend or restrict their activity.
“Black April” has dealt a strong blow to dealer cash liquidity, and seriously affected stability during middle-term period. The dealers are preparing to restart their business in May; however, they don’t expect significant sales growth.
AutoVAZ , the largest Russian car manufacturer, reported sales declined by three times in April over March.
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RUSSIA REPORT: April 2020
Large Russian Automakers Resume Work After One Week Stop
Many automakers who suspended work March 30 in Russian, as ordered by the government to the reduce spread of the COVID-19 resumed work April 6. The firms including KAMAZ, AutoVAZ, GAZ Group, Mazda Sollers.
Maxim Sakov However, 98% of office personnel are working remotely. Started working YAMZ, Yaroslavl plant of diesel apparatus and some production lines of Likino bus plant. Procurement production of GAZ plant in Nizhny Novgorod is also working. Schedule of main production lines will be determined within a week depending on situation on suppliers’ plants. Read The Article
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RUSSIA REPORT, March 2020
This report includes updates on these manufacturers: Haval, Claas, Aurus, and KAMAZ.
Haval To Build Engine Plant in Russia
This article first appeared in the March 2020 issue of PowerTALK™ News
Haval, the Chinese manufacturer, said it plans to build its own engine plant in the Tula region of Russia. Work is scheduled start this month (March 2020). The planned investment in the project is US$ 270 million. This information comes from press-service of Haval Motor Rus.
Maxim Sakov It’s expected that the new plant will produce 80,000 engines annually, increasing the localization level of SUVs by several thousand units annually. Total personnel number in automotive plant exceeds 1000 people. Read The Article
PSR Analysis: The first Russian Haval plant opened in May of 2019. Current production capacity is 80 Haval SUVs. The plant will be located on a 10,000 sq.m. site next to the Haval automotive plant. It will provide more than 300 jobs.
Claas is Shifts Production of Tucano 320 Harvester To Russia.
In April 2020, Russian plant Claas in Krasnodar will start producing the Tucano 320 grain combine. During the first two years, this model will be produced simultaneously in Germany and in Russia. Beginning in 2022, the plant in Krasnodar will became the sole maker for this model. The move opens opportunities to increase production and export volumes for the Russian plant.
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