the potential of automotive industry
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The potential of automotive industryTRANSCRIPT
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The potential of automotive industry
in Poltava region
Poltava, 2013
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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
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Ukrainian car market
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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:
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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%
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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»
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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»
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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»
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Major car manufacturers in Ukraine
Source: 2012, PJSC «Deloitte & Touche USC»
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Poltava region
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Geographical location of Poltava region
Source: Poltava Regional Center of Investments and Development
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Investment map of Poltava region
Map symbols
Source: Poltava Regional Center of Investments and Development
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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
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The city of Kremenchuk
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Kremenchuk is a place of car production
Source: Poltava Regional Center of Investments and Development
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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
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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
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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
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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