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Everything in the yard: the “big seven” gave the Russian truck market to the Chinese

  • October 3, 2022
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Anti-Russian sanctions have been in place for more than six months. This caused the flight of many foreign companies from the country’s market. Unfortunately, many “truck” car brands

Anti-Russian sanctions have been in place for more than six months. This caused the flight of many foreign companies from the country’s market. Unfortunately, many “truck” car brands took part in this process. The AvtoVzglyad portal found out what is happening now in this segment of the car market.

First of all, we are interested in the trucks of the so-called Big Seven. In fact, it’s all sad. New cars DAF, Iveco, MAN, Mercedes, Renault, Scania and Volvo, if they are now sold by Russian distributors, then at least – from old stocks, so to speak. All these brands are controlled by European or American companies.

That is why in the spring of this year they at least suspended their activities in Russia. And many have already left. Some of them had their own assembly plants in Russia. They stood up, of course. Because they used components supplied by parent companies.

Daimler Truck AG (manufacturer of Mercedes-Benz and Fuso trucks) “got in touch” with the Russian KamAZ, with whom it collaborated on a long-term and mutual basis in the context of the joint venture. At the same time, the company chopped off all its ‘roots’ in our country and actually said goodbye to the market. The MAN-Scania assembly line in Sushary (both brands are VW) stopped in March. The “freight” Germans then even decided to leave Russia completely. At the end of February 2022, Volvo Trucks announced that it was closing its assembly plant in the Kaluga region. The Dutch DAF, owned by the American holding company PACCAR, has stopped deliveries of equipment to our country. But it seems that he is not refusing his warranty obligations to Russian customers.

Italian company Iveco announced in the summer that it had decided to completely curtail its activities in Russia. At the same time, the company withdrew from the Iveco-AMT joint venture, which assembled Italian brand trucks and tractors. Everything is clear at Ford Trucks and Renault Trucks: they waved the pen at us, as they say.

Fortunately, at the beginning of the current crisis, most of the Russian truck market was occupied by the products of KamAZ and the “Chinese”, with small vehicles from MAZ and the Japanese represented by Hino (owned by Toyota Motor) and Isuzu. The latter, by the way, produced a fairly wide range of trucks at its plant in Ulyanovsk. But it was recently announced that the months-long “suspension of production” is about to end with the announcement of the final curtailment of Isuzu production in Russia.

From the outside, the mass exodus and freeze of activities in Russia by European and Japanese brands looks like a catastrophe. But if you take a closer look at the truck sales statistics, you will see that this is by no means fatal to the domestic economy. Frozen foreign car brands took up about a third of our car market, which totaled more than 100,000 units of trucks sold in 2021. It has clearly fallen in the current year: 51,400 new trucks were sold in January-August, which is 20% less than in the same period last year.

But the ‘percentages’ of the lag represent a much smaller share than the deserter brands taken in our market. That is, there is a global trend that KamAZ (although struggling to overcome component problems) along with Chinese truck manufacturers – with all these Shacman / Shaanxi, JAC, FAW, HOWO and other Sinotruck – are slowly entering the niche of the departed ” Europeans”. In addition, according to data for the first seven months of 2022, the share of the “Chinese” already accounts for more than 20% of the total volume of the domestic truck market. Although they barely reached the 7% bar a year ago.

If in May the “Chinese” accounted for 25% of all Russian sales of cars of this class, then in June – already 31%, and in July – as much as 40%! In addition, more than 90% of all trucks sold in our country from China are represented by four brands – Shacman / Shaanxi, Howo, JAC and FAW. All, except FAW, sometimes show sales growth!

It is possible that by the end of this year it will turn out that the current dominance of Russian car brands in the truck market of the country has ended, and the “Chinese” have conquered much of it. At the same time, they may not only successfully fill the niche that the “Europeans” and “Japanese” have left, but also take a fair share of the market “pie” from domestic brands, taking advantage of manufacturing difficulties with components from the latter.

volvo photo
photo AutoView

First of all, we are interested in the trucks of the so-called Big Seven. In fact, it’s all sad. New cars DAF, Iveco, MAN, Mercedes, Renault, Scania and Volvo, if they are now sold by Russian distributors, then at least – from old stocks, so to speak. All these brands are controlled by European or American companies.

That is why in the spring of this year they at least suspended their activities in Russia. And many have already left. Some of them had their own assembly plants in Russia. They stood up, of course. Because they used components supplied by parent companies.

Daimler Truck AG (manufacturer of Mercedes-Benz and Fuso trucks) “got in touch” with the Russian KamAZ, with whom it collaborated on a long-term and mutual basis in the context of the joint venture. At the same time, the company chopped off all its ‘roots’ in our country and actually said goodbye to the market. The MAN-Scania assembly line in Sushary (both brands are VW) stopped in March. The “freight” Germans then even decided to leave Russia completely. At the end of February 2022, Volvo Trucks announced that it was closing its assembly plant in the Kaluga region. The Dutch DAF, owned by the American holding company PACCAR, has stopped deliveries of equipment to our country. But it seems that he is not refusing his warranty obligations to Russian customers.

Italian company Iveco announced in the summer that it had decided to completely curtail its activities in Russia. At the same time, the company withdrew from the Iveco-AMT joint venture, which assembled Italian brand trucks and tractors. Everything is clear at Ford Trucks and Renault Trucks: they waved the pen at us, as they say.

Fortunately, at the beginning of the current crisis, most of the Russian truck market was occupied by the products of KamAZ and the “Chinese”, with small vehicles from MAZ and the Japanese represented by Hino (owned by Toyota Motor) and Isuzu. The latter, by the way, produced a fairly wide range of trucks at its plant in Ulyanovsk. But it was recently announced that the months-long “suspension of production” is about to end with the announcement of the final curtailment of Isuzu production in Russia.

From the outside, the mass exodus and freeze of activities in Russia by European and Japanese brands looks like a catastrophe. But if you take a closer look at the truck sales statistics, you will see that this is by no means fatal to the domestic economy. Frozen foreign car brands took up about a third of our car market, which totaled more than 100,000 units of trucks sold in 2021. It has clearly fallen in the current year: 51,400 new trucks were sold in January-August, which is 20% less than in the same period last year.

But the ‘percentages’ of the lag represent a much smaller share than the deserter brands taken in our market. That is, there is a global trend that KamAZ (although struggling to overcome component problems) along with Chinese truck manufacturers – with all these Shacman / Shaanxi, JAC, FAW, HOWO and other Sinotruck – are slowly entering the niche of the departed ” Europeans”. In addition, according to data for the first seven months of 2022, the share of the “Chinese” already accounts for more than 20% of the total volume of the domestic truck market. Although they barely reached the 7% bar a year ago.

If in May the “Chinese” accounted for 25% of all Russian sales of cars of this class, then in June – already 31%, and in July – as much as 40%! In addition, more than 90% of all trucks sold in our country from China are represented by four brands – Shacman / Shaanxi, Howo, JAC and FAW. All, except FAW, sometimes show sales growth!

It is possible that by the end of this year it will turn out that the current dominance of Russian car brands in the truck market of the country has ended, and the “Chinese” have conquered much of it. At the same time, they may not only successfully fill the niche that the “Europeans” and “Japanese” have left, but also take a fair share of the market “pie” from domestic brands, taking advantage of manufacturing difficulties with components from the latter.

Source: Avto Vzglyad

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