Rubber and tire industry in Russia

Rubber and tire industry in Russia

Against the backdrop of the withdrawal of Western tire manufacturers from Russia, China has sharply increased its exports to Russia.

According to Kommersant, in the first half of 2022, 10.9 million tires were imported to Russia. The largest purchases of tires were made in March: 2.3 million tires were delivered, which is 18.8% more than in the same month in 2021.

This figure takes into account tires for passenger cars, as well as special equipment and agricultural vehicles.

From January to June, about 3.8 million tires were imported from China to Russia, which is 44.7% more than in the same period last year. In monetary terms, imports increased significantly – by 58.9% to $252 million. Of these, only 58.4 million (9.6%) are tires for passenger cars.

The volume of tire supplies for special equipment and agricultural vehicles grew more actively and in May exceeded the volume of the last spring month of last year by 4.8 and 2.4 times, respectively.

At the same time, shipments from other countries under sanctions fell sharply: from Korea – by 54 percent, from Japan – by 44.9 percent, from Luxembourg – by 60 percent, from Germany – by 42.2 percent.

At the end of June, there were about 77 million tires in Russian warehouses. With an average monthly consumption of four million, this would be enough for at least 19 months – that is, more than a year and a half. The main stocks fall on winter tires.

About 10-12% of new cars on the Russian market are imported under the parallel import scheme. This is reported by the VPost publication, which got acquainted with the sales statistics of the Association of European Businesses (AEB) and the Avtostat agency. The first is based on official data from car brands, the second takes into account registered cars and therefore reflects the real picture of sales. The difference in reports is an idea of ​​​​the volume of “gray” imports.

According to the AEB, Russians bought 32,499 new cars in January, which is 63.1% less than in January 2022.

Avtostat has a much higher result: the agency reported 45,231 cars sold, and according to its version, the decline in demand was 47.4%. .

The difference in reports is almost 13 thousand cars. Some Chinese brands, including Chery and its sub-brands Exeed and Omoda, do not provide their data to the AEB. Also, the results of Mercedes-Benz and BMW, which changed in the quarterly report, are not taken into account. If you subtract their figures from the difference, you will get an idea of ​​\u200b\u200bthe number of registered “gray” cars.

Thus, about 4000-5000 new “parallel” cars are delivered to the Russian Federation monthly. For example, according to AEB, in January, Russians purchased 1415 Kia cars, and according to Avtostat, 2295.

According to Eurostat, exports of pneumatic tires and rubber tires from the European Union to Russia in January-August 2022 amounted to 125.7 million euros in monetary terms, which is 64% less than in the same period in 2021, when the European Union exported tires and rubber tires to the Russian Federation.

The largest shipments of these goods from the European Union to Russia arrived in Russia in January – in the amount of 54.1 million euros (+ 30% compared to January last year) and in February – 51.4 million euros (+ 27%). The least amount of pneumatic tires and rubber tires was imported to the Russian Federation in April – 1.3 million euros, which is almost 35 times less than in April last year.

The main suppliers of pneumatic tires and rubber tires from the European Union to the Russian Federation in January-August 2022 were Spain, Poland and Germany.

Top suppliers of tires and rubber in Russia
Hercules Tyres Rus

Hercules Tyres Rus is the official representative of a large Chinese factory in Russia and supplies various sizes of tires every month in the required quantity for customers.

Acetrade Limited

The company offers a wide range of Russian tire brands such as:

VOLTYRE, YAROSLAVL (Tyrex), OMSKSHINA, URALSHINA, KAMA, BELSHINA, AMTEL-VREDESTEIN (passenger car tires), AMTEL and ROSAVA.

The company exports its products to the countries of the European Union, the United States, Latin America, Africa, …

JAMPACK ENTERPRISES LTD

The Russian-Dutch company JAMPACK ENTERPRISES LTD is an exporter of Russian chemical and rubber products.

Product list: rubber, chemical agent, polymer, PVC, petrochemical, synthetic fibers, acids, alkalis, etc.

Santan Trading PLC

Santan Trading PLC  is the official exporter of tires produced in Russia, Ukraine and Belarus. The company has long-term contracts with all tire manufacturers in the CIS countries and has been supplying tires to all continents for more than a decade.

ERT-Group

ERT-Group, LLC  is a well-coordinated team of specialists working in the market of OTR tires and tire protection chains.

ERT Group products include: tires, industrial conveyor belts, mechanical rubber products equipment, chain extraction, processing, …

The leading tire and tire manufacturers in Russia
ZAO “Voronezh Tire Plant”
“YOKOHAMA R.P.Z.”
PJSC “Yaroslavl Tire Plant”
OJSC “Nizhnekamsk Tire Plant”
JSC “Omskshina”
JSC “Voltaire-Prom”
LLC “URALSHINA”
JSC “KSHZ”
Pirelli Tire Russia LLC – ZAO “Voronezh Tire Plant”

1872 – Giovanni Battista Pirelli founded the company, and today, after more than 150 years, the company is present in 160 countries of the world, has 19 factories on four continents and about 31,500 employees. Pirelli is one of the leaders in the production of premium tires. The company is constantly focused on research and development, in which it invests 6% of its Prestige Tire revenue, which is one of the highest in the industry. Investments allow for the continuous improvement of the company’s products in terms of performance, safety and reduction of negative environmental impact. In achieving its business goals, the company strictly adheres to the principles of social responsibility, which is confirmed by the company’s leading positions in such ratings.

The history of triumphs in sports competitions begins in 1907, after the victory of the Itala car on Pirelli tires in the Beijing-Paris Rally. Today, Pirelli is the exclusive supplier of the Formula 1™ and Superbike world championships. Racing is an additional challenge that leads to technological innovation for the company.

Product excellence, the glory of the Pirelli calendar, the prestige of participation in Formula 1™ and design projects – all this ensures the success of the brand in the world.

Pirelli in the world

Pirelli in Russia

Pirelli considers Russia to be an important strategic market. Russia plays a leading role in the premium winter tire market, where Pirelli is currently one of the main players. In December 2011, Pirelli Tire Russia LLC acquired the Kirov Tire Plant, and in February 2012, a tire plant in Voronezh was acquired. Since the acquisition of both companies, the introduction of new technologies has begun, the organization of work processes in the field of logistics, quality control and production has been revised, thereby ensuring that the products manufactured meet Pirelli’s high standards.

Pirelli, which is strongly committed to the values ​​of social responsibility and sustainability in all countries where it has a commercial and industrial presence, is also steadfast in issues of corporate social responsibility and sustainability in Russia. The company invests in the development of environmentally friendly production technologies and respect for resources, treats consumers by producing products of impeccable quality, participates in the life and development of communities in the regions of its presence, supports charitable and volunteer projects. The company is a member of the Association of Tire Manufacturers, which unites leading tire manufacturers and importers.

JSC “Voltaire-Prom”

Voltaire-Prom Joint Stock Company (Volzhsky Tire Plant) was put into operation on June 30, 1964.

Throughout its history, the plant has been expanding its product range, upgrading production facilities, and introducing new technologies.

The plant has been one of the largest industrial companies since its inception.

The company’s core portfolio includes tires for agricultural and industrial machinery.

In October 2013, Titan International, Inc. (NYSE: TWI), in partnership with One Equity Partners (OEP) and the Russian Direct Investment Fund (RDIF), acquired Voltyre-Prom from its original owner, Cordiant Holding. Titan International acts as the consortium’s managing partner, combining local business knowledge, financial expertise, and successful manufacturing experience.

Given Titan’s commitment to becoming a leading global manufacturer of wheels, tires, and undercarriage components, this transaction provides a unique opportunity for Titan and Voltyre-Prom. The investment will allow Voltyre-Prom to improve its current manufacturing practices and strategically expand its business.

Voltyre-Prom confirms compliance with REACH requirements (accredited and certified REACH facilities) for products supplied to the European Union countries.

Key and important factors for the presence of Iranian manufacturers in the Russian market

According to the preliminary research conducted on the rubber and tire industry in the large Russian market and considering the key factors:

High and consistent quality of manufactured products

Preferential tariffs for import duties of Iranian goods to Russia

Low export costs of Iranian products to Russia compared to Western and Chinese goods

The proximity and proximity of Iran and Russia as a logistical advantage and the possibility of exporting Iranian goods to Russia by various methods such as land, rail and sea transportation in the shortest time and low shipping prices

The absence of a large part of the market from famous Western brands

The possibility of rapid expansion of market share and access to the competitive and trade space in Russia

It can be said that there is a high economic justification for the entry of the esteemed company ” ” into the large Russian-Eurasian market, and the “Fardad” Group of Companies is proud to establish effective and successful joint cooperation in this direction.