THE RUSSIAN CAR FLEET MARKET AND FLEET MANAGEMENT CHALLENGES

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Estella Shepherd
5 years ago
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2 THE RUSSIAN CAR FLEET MARKET AND FLEET MANAGEMENT CHALLENGES

3 Speakers Ian Hucker, Director European Fleet and Commercial Vehicles, OPEL/VAUXHALL Kent Bjertrup, General Director Russia & Regional Director North-East Europe, ALD Automotive Russia

Russia at a Glance World s largest country by area Covering more than 1/8 of the Earth's

mineral and energy resources No. 1 natural gas producer, No.

one-quarter of the world's fresh water Population: 143 million (9th globally).

cities with population > 1 mln. (Moscow ~12M, St.

Other Country Facts 90% of women are in the workforce 99.6% literacy 152 /1.

4 Russia at a Glance World s largest country by area Covering more than 1/8 of the Earth's inhabited land area, spanning 9 time zones, and 40% of Europe The world's largest reserves of mineral and energy resources No. 1 natural gas producer, No. 2 oil producer, world's largest forest reserves, lakes contain approx. one-quarter of the world's fresh water Population: 143 million (9th globally). 80% concentrated in European Russia & Southern Siberia 73% urban & 27% rural dwellers 12 cities with population > 1 mln. (Moscow ~12M, St. Pete ~5 M) Extreme weather difference across the country: Record ranges of -71⁰C & +41⁰C Other Country Facts 90% of women are in the workforce 99.6% literacy 152 /1.000 people registered Internet users 838 /1.000 people Mobile phone users 98% TV penetration Church of Christ the Saviour in Moscow main cathedral of Russian Orthodox Church Samara >1.1 mln. city on Volga Yekaterinburg >1.3 mln. city in Urals

Russian Market Particularities Significant

elimination Suspension Components and Tuning

frequent ambient temperatures below - 30 C in

5 Russian Market Particularities Significant rough road conditions (pot holes, ruts, etc.) and expectations to park over curbs. Increased Ride Height & Air Deflector elimination Suspension Components and Tuning for rough roads Long winters (6 months), frequent ambient temperatures below - 30 C in highly populated urban areas: Time to Heat Heated Seats Battery capacity

Russian Automotive Market in the Global Environment Russia made it in the top 10 Global markets in 2006 Key market growth drivers are: low unemployment, growing middle class, aged car park, low car

6 Russian Automotive Market in the Global Environment Russia made it in the top 10 Global markets in 2006 Key market growth drivers are: low unemployment, growing middle class, aged car park, low car density (300 per 1000 population), Government likely to remain active in supporting vehicle market, High oil-price dependency, declining/ aging population and inflationary pressures remain key downside risks

7 Russian Automotive Market Dynamics

8 Russian Market Growth Potential Vehicle density still low Lot of further growth potential *Source: World Bank

9 *Source: Dataforce, Polk, Ernst&Young, ACI, WardsAuto Russian Market Growth Potential Vehicle Park Age

10 Russian Market Growth Potential Local Production

11 Russian Market Growth Potential Local Production

12 Russian market Sales by Vehicle Origin

13 Russian market dynamics Jan. - Sept ,0 500,0 400,0 379,0 438,5 519,0 461,4 510,3 533,6 538,8 499,4 300,0 328,9 200,0 158,8 179,4 201,5 241,0 200,6 219,4 222,0 219,4 193,3 100,0 0,0 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER new used * Source Russian Automotive Market Research

14 Russian New Car Market Dynamics Top 15 Other Russian DAEWOO MERCEDES-BENZ MAZDA MITSUBISHI OPEL SKODA FORD NISSAN TOYOTA VOLKSWAGEN CHEVROLET HYUNDAI KIA RENAULT VAZ 0,00% 2,00% 4,00% 6,00% 8,00% 10,00% 12,00% 14,00% 16,00% 18,00% 20,00% January-September 2012 January-September 2013 * Source Russian Automotive Market Research

15 Russian Used Car Market Dynamics Top 15 Other Russian MERCEDES-BENZ MAZDA KIA DAEWOO OPEL RENAULT HONDA MITSUBISHI VOLKSWAGEN HYUNDAI CHEVROLET FORD NISSAN TOYOTA VAZ 0,00% 5,00% 10,00% 15,00% 20,00% 25,00% 30,00% 35,00% 40,00% * Source Russian Automotive Market Research January-September 2012 January-September 2013

16 Russian Fleet Market Total PC Market Commercial sales channels 11% 2% 15% 89% 83% Private Commercial True Fleets Rentals (Short Term) Dealerships/Manufacturer

17 Russian Fleet Market 1,600,000 1,400,000 1,200,000 PC registrations Jan-July 13 vs. Jan-July % -8% Private sales are decreasing while Commercial sales are growing 1,000, , , , % 200,000 0 Total Market Private Commercial

18 Russian Fleet Market 140, ,000 Commercial registrations Jan-July 13 vs. Jan-July % All channels are growing 100,000 80,000 60,000 40,000 20, % +33% 0 True Fleets Rentals (Short Term) Dealerships/Manufacturer

19 Russian Fleet Market Top 10 brands: Private vs. commercial

20 Russian Fleet Market Segmentation

21 Russian Fleet Market Segment Development

22 Russian Financing & Leasing According to a KPMG study from 2012 Russia has one of the biggest potentials to further develop in the areas of: Traditional Financing and Leasing Services Additional Vehicles Services

23 Russian Light Vehicle Financing Market

24 Russian Light Vehicle Financing Market

25 Russian Leasing Market

NEW PASSENGER CAR REGISTRATIONS EUROPEAN UNION 1

PRESS EMBARGO: 8.00 AM (6.00 AM GMT), 14 September 2017 NEW PASSENGER CAR REGISTRATIONS EUROPEAN UNION 1 Passenger car registrations: +4.5% over eight months; +5.6% in August In August 2017, passenger