Production in Russian machine-building industry increased by 3.7% in January

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AK&M 29 March 2021 11:26

In January 2021, the Russian machine-building industry saw the third consecutive month of production growth (+3.7% year-on-year), as stated in issue 1415 of AK&M Information Agency's monthly paper "RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES. Mechanical Engineering" issued on March 24, 2021.

While, according to preliminary data, Russia's Federal State Statistics Service (Rosstat) noted a decline in industrial production by 3.7% YoY this February, the mechanical engineering saw mixed performance, with only in two of the five sectors in decline. Production of motor vehicles, machines and equipment increased significantly. The two-month performance improved in all five mechanical engineering sectors in 2021.

The global car market increased by 12.4% to 5.76 million passenger cars and light commercial vehicles in February 2021. 2-month global sales in this segment reached 12.454 million pcs (+6.8% YoY). China remains the global leader in car sales last month with 1.382 million vehicles sold, which is 4.8 times above the previous year's result. 1.184 million cars were sold in the U.S. (-12.8% year-on-year).

Car sales markets in Western Europe decreased by 20% to 878.4 thousand cars in February. Car sales in Eastern Europe stayed flat year-on-year to reach 304.2 thousand units (+0.6% YoY). The stability of sales in this region compared to Western Europe particularly resulted fr om relatively strong sales in Russia, wh ere demand was spurred by the upcoming increase in the car recycling tax. In South America, local dealers sold 186.6 thousand cars, which is 15.1% below the previous year's result.

In value terms, exports of mechanical engineering products amounted to $1.298 billion in January 2021, while imports reached $13.626 billion, which is 10.5 times higher. Compared with the previous year, exports declined across the whole product range in January, although exports of trucks increased in value terms. Besides, imports increased year-on-year substantially for most of the import items. The opposite is seen when comparing January results with December: import volumes declined across the board, and imports of mechanical equipment dropped the most.

Russia is implementing a program for the development and manufacture of domestic medium and large capacity gas turbines. Power Machines and United Engine Corporation (UEC) are building up production of Russian innovative gas turbines according to schedule, according to a statement by Mikhail Ivanov, Deputy Minister of Industry and Trade of Russia, on February 25. In particular, the production capacities of UEC-Saturn ensure production of one turbine per year starting from 2022.

An in-depth review is provided in issue 1415 of AK&M Information Agency's "RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES. Mechanical Engineering" monthly paper issued on March 24, 2021.