Released on: October 17, 2007, 2:06 am

Press Release Author: Shushmul Maheshwari

Industry: Automotive

Press Release Summary: Russian auto industry sold record number of cars, both local
and foreign. But foreign brands are augured to outpace the local ones in short-term
due to Russia’s WTO accession. RNCOS report studies the market in detail.

Press Release Body: The leading market research consulting services company RNCOS
has recently come up with its new report on the Russian automobile industry,
“Booming Russian Automobile Sector”. The report is an extensive work on
the Russia’s burgeoning auto industry and predicts that car sales in the
country would rise at a CAGR of over 17% from 2007 to 2010. Also, foreign cars will
make their place in the market and run at an AAGR of over 25% during the same
period. But this is just a part of the rational future forecast given in the report
that also covers other auto segments like commercial vehicles.

The recent data of the Automobile Manufacturers Committee (AMC) of the Association
of European Businesses (AEB) in Russia supports the RNCOS findings. AMC reported
that foreign cars’ sales in the nation climbed up by huge 66% on YOY to over
1.5 Million in just eight months, from January 2007 to August 2007.

The RNCOS report has recognized growing disposable incomes, continuous development
of consumer financing schemes, and amending credit conditions as the growth-inducing
factors for the transcontinental country.

According to the report, the accession of Russia to the World Trade Organization
(WTO) in 2007 will also significantly impact its auto industry. Being a member of
the WTO, Russia will have to cap its import duty on new cars at 15% from the current
25% of the car price during 2008-2015.

Moreover, Russia has made auto parts duty-free, which is holding back the
auto-manufacturers to forge business relations with Russian component makers.

Among other reasons cited by the RNCOS report for this concrete sales growth in the
foreign cars is the competitive nature of foreign brands; qualitatively, these cars
are tough competition to their local rivals. But the competition has given the
Russian industry a reason to consistently upgrade its production line.

“Booming Russian Automobile Sector” gives a segment-wise (passenger
cars, commercial vehicles, tractive units, and buses) current and past scenario of
the Russian auto industry, subsuming production, sales, import and export. Apart
from that, the thorough industry analysis, including drivers, opportunities, and
challenges for the industry, will help the clients in understanding the
demographics, customer behavior, economic and financial condition, finance industry,
fuel condition, infrastructure etc. and thus, will be proved useful in designing
strategies to venture into the market.


About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: www.rncos.com/Report/IM551.htm
Current Industry News: http://www.rncos.com/blog


Web Site: http://www.rncos.com

Contact Details: RNCOS
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com