Russia can benefit from the experience of developing the auto industry in Southeast Asia

In the previous ARTICLESdedicated to the domestic automotive market, we came to the conclusion that in the foreseeable future, Russians will have to start switching to Chinese and Iranian cars. Immediately a fair question arose - where are our own cars and manufacturing plants? Have they all managed to “optimize” them too?

In fact, Russia still has its own, domestic auto industry, but it is in a state of systemic crisis, from which it has yet to get out. And in order to understand how this can happen, it is worth remembering the world experience in the development of automotive production in different countries.

It should be borne in mind that from a technological point of view, the auto industry is no easier than the aviation industry. A modern car is made up of many thousands of parts. All technical solutions have long been patented and covered by so-called patent umbrellas. Without the permission of the copyright holder, only the Chinese or Iranians can simply copy something without fear of getting into multimillion-dollar fines. In addition, the road for such cars to "civilized" markets will be closed, and they will have to limit themselves only to their own domestic market, which will negatively affect production volumes.

In general, everything is difficult. The global automotive market is already quite tight, since it has long been divided by several multinational corporations, and in recent decades, dozens of new automakers have appeared like mushrooms after rain, mainly in the Southeast Asian region. For us, their experience can be very informative, because a few decades ago there was no car industry at all, and the population moved en masse on bicycles and mopeds. So, how did the Asian auto industry develop?

Option One - independent developments. This is the most difficult option, which requires a certain technological base and experience. An example is the premium brand Luxgen, created by the Taiwanese automaker Yulon Motor. Cars under this brand are positioned as entirely developed in this Chinese province. However, do not forget about important nuances.

In particular, the parent company Yulon Motor itself began with the licensed assembly of Nissan and Mitsubishi models, the production of components for them, as well as cooperation with other large international companies. Technologies and components for premium Taiwanese brand engines are supplied by Delphi Corporation and Garrett AiResearch, gearboxes are supplied by Japanese Aisin Seiki Co. That is, from scratch, Luxgen could not appear from nothing.

Option two - purchase of a license. This is the most popular and time-tested way to develop automotive production from scratch. Some big company sells a license to a backward country to assemble their discontinued model. The buyer receives a turnkey product with known consumer qualities, which can be sold on the domestic market with a certain discount already under his own brand. During the term of the license, he trains personnel, localizes the component base, and upon completion of the license, he receives the right to develop his own models on the basis of the acquired platform.

Mitsubishi Corporation was the most active in this field at one time. Not everyone is aware, but the popular South Korean brand Hyundai initially used the car platforms and engines of this Japanese company and is still technologically cooperating with it. In particular, the second generation Hyundai Sonata sedan was created on the fifth generation Mitsubishi Galant platform and with licensed engines. The Malaysian automaker Proton, and there is one, is also based on the technologies of this Japanese company. For example, the Persona sedan is built on the same platform as the popular Mitsubishi Lancer. The Chinese company Changfeng produces the Liebao Q6 SUV, which is a licensed copy of the Mitsubishi Pajero II b. In the same place, in the Celestial Empire, a licensed Mitsubishi Lancer under a local brand drives somewhere.

If you dig deeper into popular Chinese models, most of them will have foreign "genes". For example, the Haima S7 crossover is based on a licensed body frame and chassis from the 2000 Mazda Tribute. Crossover JAC Rein is a licensed copy of the first generation Hyundai Santa Fe. Etc. The development path of the automotive industry, starting with a licensed assembly, is reliable and proven. Actually, the Soviet automobile industry once began with it. Suffice it to recall the Italian Fiat 124, which became our “penny”.

Option Three is the creation of joint ventures with foreign manufacturers. There are important nuances here, since the final result will depend on the industrial policy authorities of the country. If they pursue a liberal course, then foreign partners do not strain much with the localization of production and prefer to engage in SKD. In fact, the assembly line just works, to which imported components are supplied. We have already seen what happens when sanctions are imposed. But there is another approach.

For example, in China, the authorities of the country, in order for foreign manufacturers to gain access to their domestic market, obliged them to create joint ventures with national ones with the maximum degree of localization of production. At the same time, local personnel were trained and a component base was created. The experience gained allowed Chinese companies to subsequently develop their own models. For example, Changan Automobile Group first assembled under license from Suzuki, then created a joint venture with this Japanese company, as well as with Ford, Mazda and Peugeot-Citroen. Since 2006, the Chinese automaker began to assemble its own BenBen, Yuexiang (Alsvin), Zhixiang, Eado, Raeton, UNI-T models under its own brand. BMW and Brilliance Auto formed the BMW Brilliance joint venture in 2003, which produces German vehicles for the Chinese market. As a result of cooperation under the Chinese brand, the Brilliance V7 crossover was released, in which the MX8 platform from BMW is easily recognized. The engine and gearbox are also European. It should be noted that the German concern in 2022 increased its share in the joint venture from 50 to 75%.

Fourth way is gaining access to advanced technologies through the purchase of foreign automakers. Here we can recall the Swedish Volvo and SAAB, the American Hummer, which almost went to China, and the British Jaguar Land Rover Automotive PLC went to the Indians. Daimler AG sold 50% of the Smart division to Chinese partners. Yes, when selling Volvo to the Chinese, it was stipulated that the technology would not be transferred to them, but the actual influence of the Swedish “genes” on Geely cannot be overlooked.

Fifth way - This is an order for the development of a turnkey automotive platform from some large well-known engineering company. With money and no economic sanctions is quite a working option.

As can be seen, for the success of the development of the automotive industry, broad international cooperation is desirable with the wise policy of the country's authorities, who themselves should be interested in the gradual acquisition of technological sovereignty. We will certainly describe in detail how the previous decades were used to implement this task in Russia.
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  1. kriten Offline kriten
    kriten (Vladimir) 23 December 2022 11: 59
    I would have had my own experience if they had not been engaged only in screwdriver assembly and kickbacks, but worked for the country developing their industry .. But there was no one in our power. So they screwed up their experience.
    1. prior Offline prior
      prior (Vlad) 23 December 2022 17: 05
      Not a single Russian official needs a Russian passenger car.
      If he says he needs it, then he's lying.
      Therefore, amen to the Russian auto industry.
  2. Michael 68 Offline Michael 68
    Michael 68 23 December 2022 12: 27
    there will be no production. Russia does not need it. Our authorities do not need a smut with production. You only need to trade with partners. And what kind of partners are the Americans, Europeans, Chinese. For them, the main thing is trade with partners. And the whole country sees the consequences of such actions of our brilliant managers.
  3. Nelton Offline Nelton
    Nelton (Oleg) 23 December 2022 13: 46
    only screwdriver assembly and kickbacks

    a liberal course, then foreign partners do not strain much with the localization of production and prefer to engage in SKD. In fact, the assembly line just works, to which imported components are supplied. What happens in the event of sanctions, we have already seen

    Do not overly belittle the Russian auto industry in 2021.
    All major manufacturers have signed SPIC and SPIC-2, prescribing deep localization for components.

    respectively -
    mastered the stamping of body parts, welding and body painting.
    and by the way, another factory for the manufacture of body parts opened this week.
    almost all major manufacturers equipped vehicles with locally produced engines, including casting and boring of cylinder blocks.
    the mass of components has been localized.

    surpluses of manufactured products and components were exported to third countries, which, in the case of a screwdriver assembly, is obviously unprofitable for our logistics, and in order to export components, we must first produce them.
    the Mazda engine plant near Vladivostok was designed / built / worked immediately for the export of almost all products.

    NOT localized - automatic transmission, components of electronic components, well, little things.

    now foreigners have dumped all this happiness to their local partners like Sollers and Avtotor, who are thinking how to manage it.

    Sollers, on the basis of the inherited Ford Transit, has already begun production under its own brand.

    At a higher level, they decided to reorient themselves to electric vehicles, such as internal combustion engines - anyway, the last century, at the same time there is no need to suffer with automatic transmission.

    The construction of a large battery plant near Kaliningrad began, a smaller production facility was opened (December 14) in Moscow.

    They connected Rosatom, they say that

    nuclear industry enterprises are already capable of producing 60% of all electric vehicle components today

    A network of Russian-made charging stations is also being deployed.

    If about the auto industry in general, not only the passenger car industry, then Russian companies, the GAZ group, KAMAZ remained on the market. There, the same is not 146% localization, but there are no problems with the fact that it is no longer possible to produce a foreign model, but there is no one yet.
    1. Nelton Offline Nelton
      Nelton (Oleg) 23 December 2022 14: 27

      Quote from Nelton.
      Russian companies, GAZ group, KAMAZ remained on the market

      So they have their own pool of manufacturers of auto components, and now this pool is starting to work for other manufacturers.

      The Chinese also entered the market relatively late, the plant near Tula started working only last year, the engine plant is under construction.
  4. elklex Offline elklex
    elklex 23 December 2022 16: 23
    The world is in turmoil right now. Rantings about "what and how" are not serious. Moves will come later.
  5. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 23 December 2022 22: 09
    One can recall all these PR developments of the Yo-mobile, the Muscovite, the Airus, the gazelle, which suddenly ended up in Turkey ...
    Drank, drank, output ...

    And in the end, Putin went to the western typewriter. and Western models in the garage ... Let the erectorate voluntarily hang noodles ...
  6. ivan2022 Offline ivan2022
    ivan2022 (ivan2022) 24 December 2022 06: 57
    Someone else's experience is useful only to those whose head is able to learn from someone else's experience. For example, the same Southeast Asians in the post-war years talked about the Soviet experience and studied .. For us, now this is too high .... our own is not for the future. Shredded and degenerated.
  7. Berton Offline Berton
    Berton (Vladimir) 29 December 2022 23: 39
    In addition, the road for such cars to "civilized" markets will be closed, and they will have to limit themselves only to their own domestic market, which will negatively affect production volumes.

    A completely stupid occupation to share the skin of an unkilled bear. It reeks of idiocy.
    So China and Iran, according to the author, can, but Russia does not. It's kind of stupid.
    And the normal and adequate reaction to these events is to get out of patent law and copy technologies. And we have no other way out of mental retardation, since we have wasted time.