Moscow Motor Show: Western Carmakers Are Gaining Ground on Local Producers
August 27, 2008
By Pal Negyesi
MOSCOW - Tucked away in the very last hall at the Moscow auto show, which held its press day Tuesday, is the stand of Russia's biggest car manufacturer, AvtoVAZ. Its status eroding, AvtoVAZ, maker of Lada cars, still commands a respectable a 20 percent market share in Russia. But it is no longer the ruling force on Russia's roads or at this show.
Years ago, when the Moscow International Motor Show was held at the old Moscow Expocentre, the AvtoVAZ press conference was the show's biggest spectacle. Russian media gathered en masse to hear ambitious projections from AvtoVAZ managers, like Vladimir Kadannikov. Kadannikov is no longer around, the show is held at the shiny new Crocus Center and AvtoVAZ is being steered towards a brighter future by French automaker Renault.
The Crocus Center is much like its counterparts in other parts of the world. A series of glass-concrete halls, where you see all the latest new models from major car manufacturers, accompanied by scantily clad women. However, as Russia is a special market, the show also has its own unique flavor.
The Local Producers Show Their Wares
Among Russian companies, the AvtoVAZ stand was relatively quiet this year, with a quirky concept, called the C-Cross that made little impact on visitors.
Another Russian automaker, GAZ, focused on its new Siber, based on the past-generation Chrysler Sebring/Dodge Stratus. Selling for the equivalent of $24,000 to $26,000, the Siber has yet to prove itself in the marketplace with its seemingly expensive price tag. Consider a well-equipped and trendy Opel Astra sells for about the same 
amount of money.
Alongside the Sibers were two Maxus vans, which are manufactured in the U.K. by GAZ subsidiary, LDV. Local production will be launched next year.
Yet-another Russian car manufacturer is emerging on the local landscape -- the little-known Tagaz -- or Taganrog Automobile Factory -- located near Rostov. In the 1990s, Tagaz assembled French-born Citroens and then South Korean-created Daewoos. With the Daewoo bankruptcy, Tagaz sought a new partner, selecting another Korean company, Hyundai. For many years, Tagaz happily churned out tens of thousands of Hyundai models. But now 
Hyundai plants its own plant. Though Hyundai has not said it intends to stop cooperating with Tagaz, the Russian automaker is now busy expanding its portfolio.
Last year, it added production lines for three old Korean-designed Ssangyong models: the Korando, the Musso and the Musso Sport. Korando is now being sold as Tager and a five-door version, which never existed before, is planned. The Musso became the Road Partner, while the Musso Sport morphed into the Road Partner P400 complete with a new face and a change from double-cab layout to single-cab.
Though production ramp up is slower than expected, Tagaz intends to produce about 35,000 of these former Ssangyong models next year.
Tagaz also has teamed up with China's Chery and will eventually produce 150,000 units of the Chinese cars. The Chery A5 is being produced in Russia, marketed by Tagaz as the Vortex Estina, while the Tiggo SUV is being sold along with other Chery products through the Chinese car maker's own sales network.
Established Foreigners Make their Mark
Renault kept mum on its plans with AvtoVAZ, saying only that a series of announcements 
could be expected in the next few months. Instead, Renault used the Moscow show to unveil its second-generation Symbol. The first one, a booted version of the Clio sub-compact looked like an afterthought. But the new Symbol is a sleek sedan, with individual, though slightly bland styling and a choice of two engines, a gasoline one and a diesel.
The Symbol, like its predecessor will be produced in Turkey and will be sold mainly in Russia, Romania, Turkey and Algeria.
The new Korean-built Koleos SUV was unveiled at the show, alongside the Sandero hatch. The Sandero, a five-door version of the inexpensive Dacia/Renault Logan, will be produced in Russia beginning in late 2009. By then, Renault will have a production capacity of 160,000 units. As Jean-Michel Jalinier, general director of Avtoframos, said Renault expects the market to converge towards hatchbacks.
Mazda, seen as one of the hip brands in Russia by Moscow yuppies, tried to play on this theme with the new Kazamai concept. Featuring the flowing lines of the Nagare prototype, the Kazamai is clearly aimed at the young, twentysomethings. It sits comfortably below the CX-7. If it gets the green light for production, it will feature a new 2-liter direct-injection gasoline engine.
Fast-growing Opel unveiled its new Insignia, which will go on sale in Russia next February, at the same time as it hits the market in other parts of Europe.
Hyundai is positioning itself upmarket in Russia. That's why it held the European premiere of the new Genesis sedan in Moscow together with the Veracruz. While the market launch of the Genesis is not decided, the Veracruz, which is called ix55 locally, will be available beginning early next year in limited numbers.
Mitsubishi was also playing the hip game, with a slew of concept cars, including the Concept RA, Concept-CX and Concept-ZT. Also on hand was the new Pajero Sport, a big, strong SUV based on the L200 pickup truck..
Volkswagen held a very optimistic press conference at which sales chief Detlef Wittig predicted that by 2010 about 200,000 Volkswagen vehicles will be sold in Russia. He confirmed the company is considering adding more capacity to its yet-to-be opened plant in Kaluga, about 100 kilometers from Moscow. The plant officially opens in 2009, though small-scale kit production is already under way.
Ford introduced the new Fiesta and Kuga, which will support the company at its fight for first position among import brands in Russia.
Moscow's Special Flavor is Chinese Spice
And the Moscow show's special flavor? It's Chinese.
This year's Moscow show featured a wide selection of Chinese cars. A lot of Chinese companies use the local market as a testing ground before going further West. Among the intriguing vehicles shown were: the Geely Emotion, a minicar with a Panda-like face; the locally assembled Lifan Breeze and Zhongxing Landmark; the soon-to-be launched and stylish Changan Benni family car; and the Great Wall Hover Pi, a stretched version of the normal Hover CUV.
Pal Negyesi is a Budapest-based correspondent.
Photos
1 - Lada C-Cross concept
2 - GAZ Siber
3 - Tagaz Tager
4 - Renault Symbol
5 - Great Wall Hover
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