The Russian automotive market is the second largest in Europe – and still growing. Russia is one of the bright spots in the tumultuous European economy and a potential growth market for North American automotive aftermarket suppliers.
The Overseas Automotive Council (OAC) of the Automotive Aftermarket Suppliers Association (AASA) will lead a delegation of North American Suppliers to Moscow in August 2013 to explore opportunities in the Russian aftermarket.
OAC is following up to its successful 2012 outreach program to Bogota, Colombia, by securing exhibit space for a delegation of North American suppliers at Automechanika Moscow, Russia, slated for Monday, Aug. 26 through Thursday, Aug. 29. The council is working with the U.S. Commercial Service, the U.S. Department of Commerce and Messe Frankfurt to obtain listings of Russian distributors who will be either attending or exhibiting at the event.
This will be a prime opportunity for North American manufacturers to explore the opportunities in the Russian aftermarket. As an OAC Automechanika Moscow delegation participant, you can connect with existing clients and meet prospective customers in their own backyards. The OAC program also will give you an inexpensive opportunity to see firsthand whether an aftermarket presence in the Russian aftermarket makes sense for your company.
The registration fee of $1,750 per company gains you access to the OAC exhibit, display space for company signs, and listings of Russian distributors. The OAC is moving quickly to finalize plans for this event so that participants can secure visas and other documentation needed for the trip. If your company is interested in participating with the OAC Automechanika Moscow delegation, contact Dan Pike at [email protected] as soon as possible.
OAC’s Russian outreach program is due to current and projected strength of the Russian economic growth. The Russian gross domestic product (GDP) growth rate has exceeded European and global GDP growth rates.
The country’s economic health is creating a boom in consumer spending, especially in automotive sales. As noted in “An overview of the Russian and CIS automotive industry” by Ernst & Young, its automotive market now is Europe’s second largest after Germany. The Association of European Businesses notes that Russia is approaching the 3 million mark in auto sales and that it is expected to surpass Germany as the largest car market in Europe.
Major carmakers have announced expansions in Russia. Ford, Renault, GM and Volkswagen signed agreements with the Russian government to increase local production, build engine factories, and invest in research and development. GM has announced it will invest $1 billion in Russia over the next five years. In light of this boom of new car sales, aftermarket manufacturers should have their infrastructure in place now in order to capitalize on subsequent aftermarket part sales in the future.
The Ernst & Young report notes that Russia’s supplier sector has restructured, creating new investment opportunities. Its retail segment has been reshaping through more efficient operations, consolidation and market expansion.
The Russia trip is an integral part of the OAC’s mission to serve as the industry’s “go to” source for networking and knowledge on global business. Since its founding in 1924, the Council has promoted the export of North American automotive aftermarket components and products into global markets. OAC’s events and initiatives make it an invaluable tool for companies looking to expand their sales footprint into international markets.
The OAC provides many outstanding networking events. Visit its Web site, www.oac-intl.org, for all the latest details and registration.
Editor’s Note: Dan Pike is the vice president of membership and member services at the Automotive Aftermarket Suppliers Association (AASA) and group executive of AASA’s international aftermarket council, the Overseas Automotive Council (OAC). OAC promotes the sale in foreign markets of automotive and heavy-duty products manufactured in North America. Those products include components, accessories, chemicals, hand and power tools, service maintenance and repair equipment, and paint and body supplies for both cars and trucks. OAC has more than 350 members in more than 40 countries. More information is available through its Web site, www.oac-intl.org. AASA (www.aftermarketsuppliers.org) exclusively serves manufacturers of aftermarket components, tools and equipment, and related products. It is a recognized industry change agent – promoting a collaborative industry environment, providing a forum to address issues and serving as a valued resource for members. “AASA, The Voice for the Automotive Aftermarket Supplier Industry.”
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