ACQUISITION OPPORTUNITIES IN RUSSIAN BRAKE

Agenda
Brake Pads Market
Major Players
Acquisition Opportunities

Brake system market capacity was estimated in $891,1 mln in 2010. It is higher than the same figure in 2007 on 28%
In 2010 brake pad share in brake system market capacity was around 41% (based on value) and 71% (based on quantity)
In 2010 was sold 17 mln brake shoes which corresponds with $366,4 mln
Considering car brake system the most frequent detail to replace is the leading brake shoe. Up to 70% of load is absorbed by them. So they are replaced once per 2 years
Brake shoe market is highly competitive. There are around 25 brands in domestic and foreign car niche
There are 2 types of brake shoe: asbestos (share of this type decreases every year) and nonasbestos
The AUTOVAZ brake shoe key supplier is ZAO VAZInterservis. The key foreign car brake shoe suppliers are Federal Modul (brand FERODO) and TMD Friction GmbH (brand TEXTAR). These brake shoe correspond with typical foreign car
About Brake Pads Market
Brake System Market division

Brake pads classification
Original details are the highest quality product. There is a trend in Russian big cities to use mainly original details. Because of high income growth the share of the original brake shoes exceed 80% (30% in regions)
In average quality brake shoe producer could diverge the original production method. However all regulations are adhered
The third group of producers is comprised of big amount of unknown brands. Many of them have satisfactory quality but it is not permanent
Источник: АА Автостат
Breaking system made up 5.4% of car components second market in 2009

Agenda
Russian Brake Block Market
Major players
Acquisition Opportunities

Доля рынка производителей колодок для автомобилей ВАЗ
Виды колодок для автомобилей производства «АвтоВАЗ»:
2101-3501090-«классика»
2108-3501080-«самара»
2110-350180-«десятка»
2121-3501090-«Нива»

«Какие тормозные колодки вы рекомендуете на моё авто?»
Источник: Журнал "Автозапчасти и цены" (№5)

Major players characteristics

Agenda
Russian Brake Block Market
Major players
Acquisition Opportunities

Cars production growth
*Источник: РБК, открытые источники
Low quantity of cars per capita in Russia
The cars production will growth

Cars markets leaders
*Источник: РБК, PWC
Indisputable leadership of Lada
But increasing proportion of foreign brands cars produced in Russia

2007-2010: Volume of the brake system components second market is increasing
Источник: АА Автостат

Foreign producers in Russia
Increase in foreign producers share
Resent foreign investments

Our choice
Direct deliveries to major car producers
13 dealers in Russia and 3 in CIS
Breaking systems for both Russian and foreign car brands