The Impact of the Automotive Industry on the Russian Economy

Akademische Arbeit, 2020

33 Seiten




1.1 Concept and history of the automotive industry
1.2 Importance of the automotive industry in the economy
1.3. Problems of the automotive industry

2.1. The current state of the automotive industry of foreign countries
2.2. Volumes and distribution of the car market of foreign countries
2.3. Forecast of car market volumes in foreign countries

3.1. The current state of the automotive industry of the Russian Federation
3.2. The largest enterprises of the automotive industry of the Russian Federation
3.3. Features of the influence of the automotive industry on the economy of the Russian Federation




Modern automotive industry is the leading branch of mechanical engineering in industrialized countries, influencing the processes of economic and social development of society. It gives impetus to the development of other industries, stimulates the employment of the population both in the production of automotive equipment and its components, and in the maintenance of motor transport.

World experience shows that the presence of its own automotive industry is one of the main elements of ensuring national security. Automotive production is developing on the basis of the achievements of fundamental and applied science and being at the same time an important factor in scientific and technological progress.

The automotive industry is the industry that is able to pull out all other industries. This is explained by its integrating role, since metallurgy, chemistry, electrical engineering, instrument making, light industry, etc. are connected with it in terms of supplies. In Russia, about 800 thousand people directly work in this industry, and in general - almost 10 % of the working-age population directly or indirectly work "for the car."

Among the "automobile" powers, Russia confidently enters the top ten in terms of the number of cars produced, holding 2.5% of world output. Taking into account the integrating and social role of the industry, taking into account the processes of globalization and their vivid manifestation in the global automotive industry, as well as the noticeable lag of Russian cars in terms of quality characteristics from world leaders, it is hardly necessary to let things take their course and wait whether the industry adapts to the global situation or will die.

In the strategy of integrating the Russian automotive industry into the global automotive industry without social upheavals and without serious damage to the needs of consumers, it is necessary to combine an increase in the quality of domestic cars against the background of price proportions acceptable to consumers with the provision of attractive conditions for foreign capital to invest in the development of the automotive industry.

The place and role of Russia in the world market of the automotive industry was paid attention to by many scientists and economists, such as I. T. Abdukarimov, I. S. Alekseev, E. A. Arustamov, A. Yu. Arkhipov, E. P. Babin, V. A. Barinov, O. I. Dyagterova and many others.

The aim of the work is to investigate the impact of the automotive industry on the Russian economy.

The object of study is the automotive industry

The subject of the study is the peculiarities of the influence of the automotive industry on the Russian economy.

To achieve a certain goal, the following tasks arise:

- to study the theoretical aspects of the automotive industry,
- consider the automotive industry of foreign countries,
- to study the impact of the automotive industry on the economy of the Russian Federation.

The presented work uses federal laws and regulations of the Russian Federation regulating the automotive industry, materials published in periodicals, as well as Internet resources.

Structurally, the work consists of an introduction, three chapters, a conclusion, a list of references.


1.1 Concept and history of the automotive industry

A branch of engineering that manufactures mainly cars, as well as motorcycles, bicycles, forklifts.

The automotive industry or automobile industry is a separate branch of modern industry that specializes in the design and construction of vehicles that do not use a rail base, in which an autonomous engine is installed that sets the entire car in motion. Usually they use an internal combustion engine, but recently alternative motor power sources have become more and more popular.

The Russian Empire had a long history of progress in the development of mechanical engineering. Back in the eighteenth century, Ivan Ivanovich Polzunov built the world's first two-cylinder steam engine, and Ivan Pavlovich Kulibin created a human-powered vehicle that had a flywheel, brake, gearbox, roller bearings.

One of the world's first tracked vehicles was invented by Fedor Aleksandrovich Blinov in 1877.

In 1896, the Yakovlev Motor Plant and the Frez car-building workshop produced the first car in Russia with a gasoline engine, Yakovlev and Frez.

The turn of the nineteenth and twentieth centuries was marked by the invention of the earliest Russian electric car nicknamed "Cuckoo", which was created by engineer Ippolit V. Romanov in 1899. Romanov also built a battery­electric omnibus.

In the years leading up to the October Revolution of 1917, Russia produced an increasing number of Russo-Baltic, Puzyrevsky, Lessner and other cars, held its first motor show in 1907, and had motorists who successfully participated in international motor racing. The Russo-Balt car took 9th place in the 1912 Monte Carlo Rally, despite extreme winter conditions that threatened the life of the driver and mechanic on the way from St. Petersburg, 2nd place in the San Sebastian Rally and covered over 15,000 km in Western Europe and North Africa in 1913. The driver of the car, Andrei Petrovich Nagel, was personally awarded by Emperor Nicholas II for raising the prestige of the domestic automobile brand.

In 1916, as part of a government program to build six large automobile plants, the Kuznetsov Trading House, Ryabushinsky and Co. created AMO (later renamed the First State Automobile Plant, ZIS and ZIL), but none of the plants was completed due to the political and economic collapse which followed in 1917.

Since the 1980s, there has been a trend in the automotive industry for the introduction of products by the electronics industry, represented by engine management systems, gearboxes and transmissions, and much more.

In the 21st century, the most significant areas have become the development of environmental and economic indicators, improving safety, improving driving performance, etc.1

In the automotive industry, different types of metals are used. First of all, it is iron and its alloys: steel and cast iron. For the manufacture of parts, grades of low-carbon and medium-carbon sheet steels are used, provided for by GOSTs. Most body parts are steel and aluminum alloys. Cast iron is the main material for cylinder blocks, clutch and gearbox housings and other interior fittings.

In the production of trackless vehicles - cars and motorcycles - non-ferrous metals are also used. These include aluminum, magnesium, copper, titanium, tin, magnesium, zinc and others. Non-ferrous metals have valuable properties: high thermal and electrical conductivity, ductility, corrosion resistance.

In addition to ferrous and non-ferrous metals, aluminum and magnesium- based alloys, zinc, and anti-friction alloys are widely used in the automotive industry. Alloys are used to make pistons, rivets, bearings, engine liners and other parts.

The automotive industry is developing according to the laws of the market. Competition is growing, new brands are entering the market, following this, the requirements for structural materials are changing. Today, the emphasis is on increasing strength at the same time as reducing weight: lighter construction leads to lower fuel consumption.2

1.2 Importance of the automotive industry in the economy

The modern automotive industry is a complex system of industrial production, which includes a number of specialized industries, as well as additional and auxiliary industries. The most important and largest industry is the production of passenger cars, followed by the production of buses, the production of trucks and the production of special vehicles.

Objectively, Russia is not a leader in this area, not even covering the needs of the domestic market, however, the capacities available since the times of the USSR make it possible to occupy a significant share in world production volumes.

The existing plants produce products that are used in other sectors of the country's economy, as well as in the military-industrial complex. A significant share of trucks and special equipment produced by domestic enterprises is exported to other countries.

In the production of passenger buses, the Russian Federation retains one of the leading places in the world, despite the fact that after the collapse of the Soviet Union, this particular industry suffered the greatest losses and was in an extremely difficult situation from the 90s to the early 2000s.

The automotive industry is closely related to such sub-sectors of mechanical engineering as engine building, the production of auto components, including car tires, as well as machine tool and robot building for the manufacture of technological equipment.

Based on this, a characteristic feature of this type of industrial production is a high level of capital costs, as well as equipment costs. Equally important is the skilled labor force, whose remuneration also implies high costs.

For the reasons mentioned above, the full-cycle automotive industry is not represented in every country. The world leaders in this industry are the USA, France, Germany, South Korea, China, and Japan. Separate production facilities are available in the UK, Sweden, Italy, the Czech Republic, India and some other countries.

The development of maximum speeds, the achievement of a high level of comfort, the provision of vehicles with advanced achievements in information technology - these are the priorities of the modern automotive industry.3

The significance of the automotive industry, in general, is as follows:

1. In industrialized countries, the automotive industry has long been not only the leading branch of engineering, but also one of those key sectors of the national economy that ensure the successful achievement of national economic, social, scientific, technical and environmental goals.
2. The development of car factories leads to a steady growth in employment and welfare of the population. Calculations show that one job in the automotive industry creates 7-8 jobs in related industries, and taking into account the sphere of trade, car service and recycling - 10 jobs. The production of automobiles, in addition to employment of the population, increases the volume and speeds up the time of trade, strengthens the financial system, and provides the possibility of sustainable production of the accompanying mass of goods and services. 3. The development of the automotive industry is based on the achievements of fundamental and applied science. It gives impetus to scientific and technical developments in various fields of knowledge, and their implementation at car factories allows, thanks to mass production, to quickly pay off the costs of their implementation.


1 Mashkin A.L., Gogolina E.S., Telushkina E.K. Analysis of the state of road transport in 2018-2020 and the prospects for its development, taking into account the consequences of the Covid-19 pandemic // Economics and business: theory and practice. 2021. No. 2-1.

2 Madhawan Ch., Rajan KS, Sudharshan R. Development of high strength steel sheet with improved strain hardenability for automotive application // Proceedings of Higher Educational Institutions. Ferrous Metallurgy. 2019. V. 62. No. 11. S. 827-832

3 Lee CG, Kim SJ, Lee TH etc. Effects of volume fraction and stability of retained austenite on formability in a 0.1C - 1.5Si - 1.5Mn - 0.5Cu TRIP-aided cold-rolled steel sheet. mater. sci. Eng. A. 2019, vol. 371, no. 1-2, pp. 16 - 23

Ende der Leseprobe aus 33 Seiten


The Impact of the Automotive Industry on the Russian Economy
ISBN (Buch)
impact, automotive, industry, russian, economy
Arbeit zitieren
Mark Kurtz (Autor:in), 2020, The Impact of the Automotive Industry on the Russian Economy, München, GRIN Verlag,


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