MOSCOW. (RIA Novosti political commentator Alexander Yurov) - Vehicle production in Russia has been on the up and up for some years now, and everyone has come to think this means only cars.
But 2006 figures have shown that for the first time trucks were actually well in the lead.
Curiously, the first months of this year are showing the same pattern: in January, car production rose by 25%, while that of trucks went up by 54%.
According to Avtoselkhozmash-Holding, a joint stock company that lobbies for the interests of Russian vehicle manufacturers, the output of motor vehicles in Russia increased in real terms by more than 10%. The average proportion of commercial vehicles in that output was about one-quarter higher than in the previous year. Apparently, the record figures for January will end up being lower than originally thought. Nevertheless, growth is not expected to slow down by the year's end.
The statistics reported by individual Russian vehicle manufacturers have proved more impressive than the average figures posted by the industry as a whole. In 2006, for example, Kamaz, a Russian heavy-duty truck maker, was able to produce and sell nearly 34% more than in 2005. This compares with the 6% rise in sales announced by AvtoVAZ, the main supplier of cars to the Russian market. Interestingly, Russian truck manufacturers began the current year by setting new records. During the first month of 2007, Kamaz sold 50% more trucks than in January of 2006. According to its press service, the company's profits will increase 140% by the end of the year. Significantly, of the more than 40,000 units manufactured annually, only just over 4,000 are exported, i.e. most of the output is sold in Russia.
It is an accepted rule that the production and sales of cars is directly related to the prosperity of the population. Russian official statistics bear this out. But that yardstick in no way applies to assessing the growth in production of special vehicles and trucks. Take-home earnings of Russians have no direct effect on commercial vehicle sales, but are a good pointer to steady business activity in Russia. Official statistics only highlight the possibility of a link. According to the Industry and Energy Ministry, industrial production rose by more than 8% in January 2007, while in January of last year the figure was a mere 4.4%.
Output growth has been observed not only in the auto industry. Food, building materials and electrical equipment also made fast progress at the beginning of this year. But the situation in the auto industry has one unique feature. Headway is being made by plants whose managers only recently advocated stiff government protectionist policies, and to good effect. Truck manufacturers are now protected by a customs barrier against rival imports. Moreover, high import duties on this type of product will remain in place even after Russia joins the World Trade Organization.
But to claim that good performance figures are exclusively the result of protectionism would be wrong. More and more local truck producers are adopting the government's program of industrial assembly, which went into effect in April 2005. This program provides for the duty-free import of assembly components into Russia. It also foresees a gradual shift to local production of assemblies and units, i.e. spare-part producers in Russia will be increasingly involved.
An example is the Russian-German ZF Kama project in the city of Naberezhnye Chelny, in Tatarstan, a joint venture launched in the fall by Kamaz and Germany's ZF to produce gear-boxes. This means Russian trucks will be more up-to-date. The project is not a one-off. Russia's Severstal-Avto and Japan's Isuzu Motor recently signed a protocol in Japan to set up a joint venture for the manufacture of Isuzu trucks in Russia. Right after the signing ceremony, Russian Industry and Energy Minister Viktor Khristenko announced that, unlike other similar agreements, this one transfers to the Russians the top achievements and advanced technologies in such a sensitive area as engine building.
The opinions expressed in this article are the author's and do not necessarily represent those of RIA Novosti.
