PCMA Rus says it will be “quite challenging” to achieve a localisation rate of 70% as the country’s automotive sector increasingly looks to domestic components in order to remain competitive.
Localisation was a key theme of this week’s Russian Automotive Forum (RAF) organised by Adam Smith Conferences in Moscow, with high import cost of overseas components unable to be passed on to consumers due to the country’s extremely difficult economic conditions.
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“We think to go to 70% localisation is quite a challenging thing to achieve,” PCMA Rus head of purchasing department, Alexander Smolyankin told delegates at the Hotel Ukraina in central Moscow. “More than 70% localisation, we find limited opportunities.
“We are localised in a balanced position. Most OEMs are in the cluster of the Kaluga region and we have got minimum cost on logistics. We are open to new cooperation with new OEMs for other zones.
“It all comes from the price. We sometimes wait too long for technical validation from our suppliers. The situation in Russia is quite ambiguous [but] the main principle is it is cheaper to buy in Russia.
“We are prepared to take a component on the shelf, new and install it. But afterwards an obstacle comes if we try to integrate [it] into our vehicles. We are working on that quite actively. Profitable localisation is possible.”
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