All about Russian ESC and ABS: how we defeated Bosch
- December 25, 2023
- 0
The replacement of imported components that are no longer available to domestic car factories due to the departure of ‘unfriendly’ partners is in full swing. Now in Russia
The replacement of imported components that are no longer available to domestic car factories due to the departure of ‘unfriendly’ partners is in full swing. Now in Russia
– Are these ABS and ESC units we are looking at now Chinese?
– No, it’s wrong to say that. As part of the licensing agreement, we own the technology, full design documentation and software. The products are manufactured in Russia and can therefore safely be called Russian. Yes, for now some components are supplied from abroad, but by 2026 we plan to localize most of them.
– Which suppliers are we talking about? What kind of manufacturers are these, from which countries?
— As part of the licensing agreement, I will not disclose specific companies. The contract is concluded between two parties: Itelma and a foreign supplier, who collects all components and technologies and transfers them to us as one entity.
— Let us abstract from “Itelma” for a moment. Is it even possible to develop and produce all the necessary components in one country? Or do I still have to buy something somewhere?
– Real. It’s not easy, but it’s very possible. At least in Russia, a country with such opportunities: technologically, in terms of personnel and technology.
By 2024, Itelma plans to release 550,000 blocks ABS and ESC. Then increase volume to 750,000 or even 1.2 million units, if there is enough demand.
– Okay, let’s get back to your project. Can purchasing a license offer a 100% guarantee of a bright future in production? Is it not revoked, is the contract not terminated? Will it happen that we will soon be without ABS and ESC again?
– Good question. But when choosing a partner to conclude a licensing agreement, we have of course thought of everything. To minimize such risks.
– Minimize, but not eliminate?
— Risks always remain. But of course we will be completely independent if we deepen the localization of production in Russia.
Of the passenger car manufacturers, only AVTOVAZ currently works with Itelma. However, negotiations with other factories are already underway – with UAZ, GAZ, Moskvich, BelGee (Geely).
— What other projects are included in Itelma’s immediate plans?
— This year we are introducing electric power steering for AVTOVAZ, we also plan to localize the production of wheel speed sensors for ABS and ESC systems — we are moving forward step by step. We also control the components of the engine control system.
— Itelma has been present in the electronic solutions market for 30 years, so why are they only now thinking about ABS and ESC production? It is clear that previously there was no urgent need, as the blocks were supplied by large foreign companies. But your own is always better, right?
— We are a commercial company. Therefore, when we enter the market, we always weigh and evaluate the competition. And it is very difficult to compete with Western manufacturers who work for the whole world. We are big in Russia, yes. But if you look at the size of the global market, we cannot compete with the leaders. Now they are gone and the state is very supportive.
– How does it support? Financial?
— No, this project is completely commercial, we are financing it ourselves. But the Ministry of Industry and Trade, for example, consolidates manufacturers and consumers, so we can be sure that the latter will consider us as a supplier. This allows us to safely enter the market, take on and develop projects.
– Are these ABS and ESC units we are looking at now Chinese?
– No, it’s wrong to say that. As part of the licensing agreement, we own the technology, full design documentation and software. The products are manufactured in Russia and can therefore safely be called Russian. Yes, for now some components are supplied from abroad, but by 2026 we plan to localize most of them.
– Which suppliers are we talking about? What kind of manufacturers are these, from which countries?
— As part of the licensing agreement, I will not disclose specific companies. The contract is concluded between two parties: Itelma and a foreign supplier, who collects all components and technologies and transfers them to us as one entity.
— Let us abstract from “Itelma” for a moment. Is it even possible to develop and produce all the necessary components in one country? Or do I still have to buy something somewhere?
– Real. It’s not easy, but it’s very possible. At least in Russia, a country with such opportunities: technologically, in terms of personnel and technology.
By 2024, Itelma plans to release 550,000 blocks ABS and ESC. Then increase volume to 750,000 or even 1.2 million units, if there is enough demand.
– Okay, let’s get back to your project. Can purchasing a license offer a 100% guarantee of a bright future in production? Is it not revoked, is the contract not terminated? Will it happen that we will soon be without ABS and ESC again?
– Good question. But when choosing a partner to conclude a licensing agreement, we have of course thought of everything. To minimize such risks.
– Minimize, but not eliminate?
— Risks always remain. But of course we will be completely independent if we deepen the localization of production in Russia.
Of the passenger car manufacturers, only AVTOVAZ currently works with Itelma. However, negotiations with other factories are already underway – with UAZ, GAZ, Moskvich, BelGee (Geely).
— What other projects are included in Itelma’s immediate plans?
— This year we are introducing electric power steering for AVTOVAZ, we also plan to localize the production of wheel speed sensors for ABS and ESC systems — we are moving forward step by step. We also control the components of the engine control system.
— Itelma has been present in the electronic solutions market for 30 years, so why are they only now thinking about ABS and ESC production? It is clear that previously there was no urgent need, as the blocks were supplied by large foreign companies. But your own is always better, right?
— We are a commercial company. Therefore, when we enter the market, we always weigh and evaluate the competition. And it is very difficult to compete with Western manufacturers who work for the whole world. We are big in Russia, yes. But if you look at the size of the global market, we cannot compete with the leaders. Now they are gone and the state is very supportive.
– How does it support? Financial?
— No, this project is completely commercial, we are financing it ourselves. But the Ministry of Industry and Trade, for example, consolidates manufacturers and consumers, so we can be sure that the latter will consider us as a supplier. This allows us to safely enter the market, take on and develop projects.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.