Russian machine-building industry saw second consecutive month of production growth in December

AK&M 18 February 2021 16:52

In December 2020, the Russian machine-building industry saw the second consecutive month of production growth (+10.7% year-on-year). However, it is too early to speak of a stable growth trend or a high growth pace, as stated in issue 1410 of AK&M Information Agency's monthly paper "RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES. Mechanical Engineering" issued on February 17, 2021.

Already in January 2021, Russia's Federal State Statistics Service (Rosstat) noted a 2.5% YoY decline in industrial production. Production shrank in three of the five mechanical engineering segments. Overall, 2020 turned out a positive year only for the manufacture of machines and equipment.

In January 2021, the global automobiles market increased by 1.9% to 6.661 million passenger cars and light commercial vehicles (LCVs), with China remaining the global leader (2.413 million cars produced last month, +27.2% year-on-year). 1.093 million cars were sold in the U.S. (-3.1% year-on-year). The combined volume of Western Europe's automobile market reached 879.3 thousand cars in January (-24.4%). Car sales in Eastern Europe decreased by 6.2% to 251 thousand units. The smaller decline in this region compared to Western Europe is the result, in particular, of relatively strong sales in Russia where the car recycling tax is expected to increase in the near future.

The value of the mechanical engineering products exported in 2020 totaled $26.263 billion, while the value of imported mechanical engineering products is 7.2 times higher ($190.125 billion). Last year saw a year-on-year decline in exports across the entire product range, but December figures (in terms of value) are much stronger than in November for all export items. Imports of most of import items also declined in 2020. That said, imports of electrical equipment slightly exceeded the previous year's level.

KAMAZ, continues the R6 inline engine development process. Its engine plant has launched a new conveyor and started mass production of new engines with improved performance characteristics. This power unit is intended for future models of KAMAZ and other vehicles. The project has delivered a family of diesel engines with a capacity of up to 550 hp which can be boosted to 750 hp. More than 750 such power units were assembled in January 2021. Now KAMAZ specialists are busy expanding the production of new inline 6-cylinder engines to 30,000 units per year, which prospects of a broader model range.

An in-depth review is provided in issue 1410 of AK&M Information Agency's "RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES. Mechanical Engineering" monthly paper issued on February 17, 2021.