Winding specialist, Marsilli Automation Technology, says localisation is becoming increasingly prevalent in Russia as government pressure and exchange rate fluctuations make domestic production more attractive.

Speaking to just-auto on the sidelines of last week’s Russian Automotive Forum organised by Adam Smith Conferences in Moscow, Marsilli, headquartered in Castelleone, Italy, outlined why it believed Russia was becoming increasingly important.

“We have just opened a representative office here in Moscow to be closer to the market with a direct presence,” Marsilli director, Giampiero Pari, told just-auto in the Russian capital.

“We believe localisation is finally coming to Russia – even though quantities are not very big. I believe the local electro-mechanical industry will localise [at] a fast pace and due to the Euro fluctuation.

“It is a logistics nightmare for some of the importers. Local production would allow car factories to get a more reliable and constant supply of components.”

The Marsilli director added he believed in the Russian market for the long term, noting the company was not in the country “to make a quick buck,” but noted the significant potential for dramatically higher car sales from their present predicted 2.4m unit level.

“No-one has a magic crystal ball,” said Pari. “There is this magic figure they talk about of 3m to 4m cars.”

Marsilli has considerable experience of emerging markets having established itself in China, which now accounts for 28% of its turnover.

“Contrary to what people think, China is pushing a lot, probably because of pollution,” said Pari. “China is very dynamic – one of the main reasons is China’s middle class which is growing.

“Figures range from 300m to 400m middle class people – China has to triple its production for everything. The middle class is very hungry for luxury goods and commodities, but also cars.

“They are giving incentives – we are seeing the first signs of very positive development in hybrid motors, electric cars and buses.”

Marsilli specialises in ignitions, starters, hybrid motors, sensors and ABS/EPS systems among other areas.