The Voice of Russia - Russian Automotive Market working with European automotive manufacturers will grow steadily in the New Year. That was the conclusion the Association of European Businesses established in this country in 1995 arrived at, studying the results of the activities in 2011 of more that its 40 industry and cross-section committees that work on a permanent basis dealing with issues like HR taxation, customs and other problems, which European businesses encounter on the Russian market, said Frank Schauff, AAEB General Director in his welcoming speech at a press-conference on the 12th .
One of the major issues, which we will address this year, he continued, and that we expect will be ratified in the course of this year, will be the WTO accession of the Russian Federation. We at the Association have been very happy that the decision has been finally taken, and we hope that the ratification process is going to be smooth.
One of the oldest committees at the AEB is the Automobile Manufacturers Committee comprising 25 companies representing the world-known brands dealing with assorted issues of improving business environment in this country. It is the biggest seller on the Russian market, and the head of this Committee, AMC, David Thomas, Chairman of Volvo LLC, spoke about the results of last year’s progress calling the past year a very positive one, and giving some projections for the year 2012.
"It is for us very important to create conditions to develop a civilized automotive market. There’ve been huge developments sand huge progress over the past 20 years or so in Russia, but there’s still some way to go, and that’s a key role for this committee. We try to secure the most appropriate legislation in order to help develop the industry, to have common rules for the importers and manufacturers so that we are operating on an even playfield. We also want to contract partnerships between our members. We are fierce competitors, but we are all very friendly. And it’s what the AMC is there for, but we still can represent common interests. And it’s not so easy with 25 different companies with a different footprint in Russia from importers to manufacturers, and there are areas where there is not a common interest," said David Thomas, Chairman of the AMC.
Of course the committee focuses on contacts and dealings with a huge number of Russian automotive companies and a vast nmber of domesic brands as well. A strong automotive industry, continued David Thomas, is possibly the best indicator of a strong economy:
"So it is not that only Russia is important to the automotive industry, the automotive industry is important to Russia. And I see that what we at the AMC play is a key part in the development of Russia. It is not only that Russia is an important market, but it need a strong automotive industry to continue developing. A I said, 2011 was a very positive one for our relations with Russia, when 2.65 million cars manufactured abroad and in Russia or imported to it by our 25 companies represented a 30% growth over 2010. The pace of growth was at first very strong, slowing down some by the end of last year. With the number of care sold here in 2011 Russia is a very important market for the automotive industry. We expect to sell 2.8 million cars in Russia this year. And one more thing: we don’t regard them as totally foreign-made cars as we have facilities here, and our cooperation is extending. Among the top 10 best-selling models so far, nine are locally produced, Said David Thomas, Chairman of the Automobile Manufacturers Committee at the Association of the European Businesses at a news conference in Moscow on the 12th."
