Can Russia Close the Gap Between Itself and Europe?

Both features can be traced back to the same route cause, the collapse of the former Soviet Union and the period of economic and political instability that followed. Back in the days of the Soviet command economy when the Russian tyre industry’s 18 factories served almost 300 million people, growing size and the fulfilment of five-year plans shaped company structure. What followed at the beginning of the 1990s can be described as a breakdown of the Russian economy, followed by a period of consolidation. The situation has only recently changed and now the Russian market is set to grow, something that makes it even more appealing to Western car and tyre manufacturers.

Then there is the peculiarity of the local tyre industry. Apart from Russia’s ‘big-three’ manufacturers, Sibur, Amtel and Tatneft, only a few companies have attracted the attention of the world’s biggest market in terms of area. Characterised by three strong and independent manufacturers, in this way the Russian market represents a microcosm of the global situation. Both features can be traced back to the same route cause, the collapse of the former Soviet Union and the period of economic and political instability that followed.

Back in the days of the Soviet command economy when the Russian tyre industry’s 18 factories served almost 300 million people, growing size and the fulfilment of five-year plans shaped company structure. What followed at the beginning of the 1990s can be described as a breakdown of the Russian economy, followed by a period of consolidation. The situation has only recently changed and now the Russian market is set to grow, something that makes it even more appealing to Western car and tyre manufacturers. This supplement to TYRES & ACCESSORIES and NEUE REIFENZEITUNG provides a look at the particular characteristics of the Russian market, introducing the important players and providing an outlook on the future development of this part of the world. Will Russia be able to close the gap between Europe and itself? Click here to download the supplement.