The potential of automotive industry
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Transcript of The potential of automotive industry
The potential of automotive industry
in Poltava region
Poltava, 2013
Outline
• Ukrainian car market
– Concentration of the cars for thousand of people
– Cars-bestsellers
– Consumer preferences Ukrainian market
– SWOT analysis of production cars in Ukraine
– Volumes of auto in Ukraine
– Major car manufacturers in Ukraine
• Poltava region
– Geographical location of Poltava region
– Investment map of Poltava region
– Automotive industry in Poltava region
• The city of Kremenchuk
– Brief information about the city of Kremenchuk
– Kremenchuk is a place of car production
– Land plots for automobile plant and related enterprises
– Advantages of investing in the automotive industry
Ukrainian car market
Ukrainian car market
Concentration of the cars for thousands of people is much lower than in
European countries, or even than in Russia
Source: 2012, PJSC «Deloitte & Touche USC»
178
228
295
301
441
453
0 100 200 300 400 500
Ukraine
Russia
Slovakia
Hungary
CzechRepublic
Poland
Quantity of cars per thousand of people, 2011:
Ukrainian car market
Source: 2012, PJSC «Deloitte & Touche USC»
29 025
22 774
20 380
13 731
11 944 11 544
11 075 10 928
10 825 9 935
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
Cars - bestsellers in 2011(units):
13,1
10,3
9,2
6,2
5,4 5,2 5,0 4,9 4,9 4,5
Cars - bestsellers in 2011(%):
Quantity The market share
14,0%
12,0%
10,0%
8,0%
6,0%
4,0%
2,0%
0,0%
Preferences of Ukrainian
consumer market
• Consumers prefer economical and
compact car, B and C class;
• Strong demand for all-wheel drive
models and business class auto;
• High demand for cheap cars up to
12 thousand dollars - strong
domestic producers;
• Stable demand for expensive cars
from 25 thousand dollars
34
6
15
19
26
Structure of demand by the country of production,%:
up to 12 thousanddollars
12 -15 thousanddollars
15 -20 thousanddollars
20 -25 thousanddollars
from 25 thousanddollars
Ukrainian car market
Source: 2012, PJSC «Deloitte & Touche USC»
Strengths Weaknesses
• Skilled and relatively cheap labor force
• Capacious consumer market
• Geographical and cultural proximity to
the European consumers
• Modernization of the infrastructure
related to the holding of Euro 2012
• Developed production capacities
• Pressure on the business of the
various authorities
• Over-regulation and poor predictability
of the economic environment
• The dependence of the economy on
external factors (input prices, demand
in the EU)
• Tax pressure and the complexity of the
tax system
Opportunities Threats
• Trade liberalization with the EU (export
growth in this direction)
• Base of export to Russia
• Rising consumer incomes (more than
70% of households still do not have a
car)
• Full recovery of auto crediting
• State support for automotive industry
(soft loans, tariff protection)
• Restrictions on exports to Russia
(recycling fee, customs regulation)
• Sending of cars from the EU at lower
import duty (including used cars)
• Macroeconomic risks (slowdown in
GDP growth, investment outflows,
reducing of foreign financing)
SWOT analysis of production cars in Ukraine
Source: 2012, PJSC «Deloitte & Touche USC»
Ukrainian car market
27,82
24,28 17,33
12,79
10,47
5,61 1,70
Structure of demand in the country of production,%:
EU
South Korea
Japan
Russia
Ukraine
China
Other
59 360
20 240
11 656 6 329
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
ZAZ Bogdan Eurocar KrASZ
Volumes of auto in Ukraine,pc.:
Source: 2012, PJSC «Deloitte & Touche USC»
Major car manufacturers in Ukraine
Source: 2012, PJSC «Deloitte & Touche USC»
Poltava region
Geographical location of Poltava region
Source: Poltava Regional Center of Investments and Development
Investment map of Poltava region
Map symbols
Source: Poltava Regional Center of Investments and Development
Automotive industry in Poltava region
• Poltava region has a long history of truck production
(since 1958)
• Two universities and six colleges that train personnel
for the automotive industry. Up to 1000 specialists
graduate every year
• Automotive industry employs near 7 000 people
• In the manufacturing process employs about 100 related enterprises (the
largest - HC "AvtoKrAZ" – 4 500 workers, LLC "KrASZ" - 358 employees and
PJSC "Vepr" - 42 employees, PJSC "Kremenchug Wheel Plant", JSC "Obod",
LLC "Autosteklo", SPE LLC "Prisadki", LLC "Yuniol", LLC "Krempolimer" and
others)
• The level of salary paid to blue-collar workers is about from 240 to 300 EURO
Source: Poltava Regional Center of Investments and Development
The city of Kremenchuk
Kremenchuk is a place of car production
Source: Poltava Regional Center of Investments and Development
Brief information about the city of Kremenchuk
• Advanced river transport. River port is available. Requirements for the
ships: draught 3.2 m, length 125 m, type of vessel: river-sea, tonnage: to
3.5 thousand tons
• Distance to Kyiv - 286 km, to Boryspil - 254 km, to Poltava – 119 km, to
Kharkov - 250 km, to Dnepropetrovsk - 162 miles, to Donetsk – 403 km,
to Zaporizhzhya – 225 km, to St. Petersburg – 1 585 km
Source: Poltava Regional Center of Investments and Development
• Kremenchuk is an industrial city
• The city area: 10 000 ha
• The population of the city - about
230 thousand people
• Located at the crossing of highways (Boryspil - Kyiv and Poltava
Olexandria-Odessa) and railways
Land plot for automobile plant and related enterprises
Land plot
• Land plot is located in Kremenchuk. Territory area adjacent to the Northern industrial hub. The plot is proposed for placement of industrial facilities
• Land area :168.55 ha
• Owner : City Council
Source: Poltava Regional Center of Investments and Development
Advantages of investing in the automotive industry
• The strategic location of Ukraine: access to markets of the European Union,
Asia and the Middle East;
• Low transaction costs for business;
• "0" rate of taxes on equipment and components to it that are not produced in
Ukraine and imported by initiators of creation and/or managing companies for
the construction of an industrial park;
• "0" rate of taxes on machinery, equipment and components that are not
produced in Ukraine and not excise taxed goods imported by participants of
industrial parks for business within industrial parks;
• Exemption from equity participation in infrastructure development of
settlements in which established industrial park;
• State support (supply of engineering and transport infrastructure) industrial
park;
• Transparent and simple acquisition of ownership rights of land within the
industrial park;
• Time to market for participants of the industrial park is 6 - 9 months;
• Highly skilled workforce;
• Large domestic market - 46 million people
Source: Poltava Regional Center for Investments and Development
Contacts
4, Shkolnyi Lane, of. 41, 45. Poltava, Ukraine. 36003
Leta Dmytro - Acting Director of Poltava Regional
Center of Investments and Development
tel.: +38-0532-50-08-64
mob. tel.: +38-066-816-52-09
e-mail: [email protected]
skype: leta.dima
www.investinpoltava.com.ua
Source: Poltava Regional Center for Investment s and Development