OREANDA-NEWS. February 24, 2012. In 2011 GAZ Group, the largest Russian automobile holding, reached sales growth in all segments and retained leadership in the domestic commercial vehicle market, reported the press-centre of GAZ Group.

In 2011 GAZ Group remained the undisputed leader in the light commercial vehicle segment with a share of over 50%, more than 40% - in the segment of heavy-duty all-wheel drive trucks and about 65% - in the bus segment.

Last year total sales of GAZ commercial vehicles increased by 26% vs. 2010, sales of Ural all-wheel drive heavy-duty trucks increased by 10%, and sales of buses – by 22%. The company was especially successful in sales of GAZ medium-duty commercial vehicles – increase by 40%, sales of large buses – increase by 65%, and in export sales of Ural trucks – increase by 70%.

In 2011 GAZ Group renewed its commercial vehicle model range in all key segments. Last year the company launched the first serial production of Euro-5 city buses in Russia and took part in a comprehensive renewal of the bus fleet in Moscow. GAZ Group became an official supplier of buses for the Organizing Committee of 2014 Olympic Games in Sochi: the company introduced a new development - GOLAZ "Voyage" bus on Scania chassis.

In 2011 GAZ Group developed a new range of GAZ and Ural vehicles for agriculture. The trucks had been designed on the basis of a careful study of the needs of agricultural enterprises, and they have no equivalents among Russian-made vehicles.

Upgrades were also made in the range of engines produced by GAZ Group. In 2011 the company completed construction of a new plant of YaMZ-530 Euro-4 medium diesel engines. It is the only diesel engine plant to have been built in Russia in the last 35 years.

Last year the vehicles of GAZ Group were awarded prestigious prizes of professional exhibitions and competitions: GAZelle-BUSINESS, a new PAZ "Vector" bus and LIAZ trolley bus won "The Best Commercial Vehicles of the Year in Russia" competition.

2011 was also a period of active cooperation between GAZ Group and the world's leading automakers. The company entered into cooperation agreements with the leaders of the world automotive industry - General Motors, Volkswagen and Daimler. Joint projects with foreign companies mean upgrade of GAZ Group’s production capacities, additional training of the staff and development of competencies that will be used to renew GAZ Group’s own model range.

President/CEO of GAZ Group Bo Andersson: "2011 has become an important milestone in the company’s development. We have renewed the model range, implemented a number of promising projects, which have no equivalents in the Russian automotive industry, and established cooperation with the leaders of the world automotive industry. The main driving factor for the company’s success is high professionalism of our employees which enables GAZ Group to retain undisputed leadership in the market and popularity of GAZ, Ural, PAZ, LIAZ, YaMZ and other famous brands of our plants among the customers."

Light commercial vehicles
Growth of GAZ commercial vehicle sales is connected primarily with the model range upgrade carried out in 2010 and 2011. The company has been actively developing GAZelle-BUSINESS family, which constituted nearly 100% of GAZ LCV sales in Russia and 75% in the CIS countries last year. Over a year since the start of sales of diesel-powered light commercial vehicles in Russia GAZ has occupied 27% of the diesel LCV market.

There has been a significant increase in sales of specific products: sales of Valdai with Cummins ISF 3.8 engine more than doubled – increase by 125%, Sobol 4x4 sales increased by 70%, sales of GAZ specialty vehicles grew by 60 %.

In 2011 GAZ focused its model range renewal efforts on two areas: improvement of the vehicle reliability and durability, and enhancement of the driver and passenger comfort. In addition to the upgrade of the existing products, the company was also developing new vehicles. Last year the company was developing on a new generation of light commercial vehicles GAZelle-NEXT and a new range of agricultural medium-duty trucks Ermak that will be launched into production in 2013.

Trucks
In 2011 sales of all-wheel drive Ural trucks increased by 10% with export sales going up by 70%, mainly due to military supplies through Rosoboronexport, as well as an increase in sales to Kazakhstan and Turkmenistan.

Last year Ural Automobile Plant of GAZ Group started production of a new all-wheel drive heavy-duty Ural-6370 truck 6x6 33.5 tons, and an all-wheel drive truck on the platform of series-produced long-wheelbase chassis Ural-4320-1912-40 6x6 up to 22.5 tons. The new models are produced in a cab-over-engine modification, which ensures better working conditions for the driver and expands options for special equipment installation.

In 2011 Ural Automobile Plant also introduced a new range of agricultural vehicles in accordance with the needs of agricultural enterprises. Another brand new development of the plant is a new-generation military vehicle with enhanced protection of the crew and cargo from bullets of small arms and mine protection. The new vehicle was highly evaluated by the Ministry of Defense of the RF.

Buses
In 2011 under the program of Moscow passenger transportation system renewal program GAZ Group delivered a big batch of buses to the capital: 2,070 low-floor LIAZ Euro-4 and Euro-5 buses for the total amount of about 17 billion rubles. The buses had been manufactured specifically for Moscow, equipped with Man engines, ZF axles and automatic transmission, and ramps, special places for wheelchair users, driver call buttons and GLONASS system.

Under this order, the company launched the first serial production of Euro-5 and EEV (Euro-5+) buses in Russia that will continue this year according to the needs of large Russian cities.

In 2011 GAZ Group continued to develop a new family of PAZ-3204 buses and launched a new PAZ "Vector" model with improved exterior and interior.

To produce new buses, the company has reorganized and upgraded blanks production facilities and put into operation new high-tech equipment at Pavlovo and Likino Bus Plants.

Powertrain
Growth of YaMZ engines sales of GAZ Group is connected with increased orders from the main customers, such as Ural Automobile Plant of GAZ Group and Minsk Automobile Plant (MAZ).
In their turn, growing sales of diesel engines and increasing demand for diesel-powered GAZ vehicles explain the decrease in UMZ petrol engines sales.

In 2011 GAZ Group completed a project – unprecedented in the Russian automotive industry – to build a greenfield modern diesel engine production facility. The company has built a new plant of YaMZ-530 Euro-4 medium in-line engines. It is the first diesel engine plant to have been built in Russia in the last 35 years and the most modern production of new-generation Russian diesel engines. Last year over a dozen modifications of 4- and 6-cylinder YaMZ-530 engines were developed for new MAZ, Ural, PAZ, LiAZ, GAZ, military vehicle samples etc.

The company has also developed UMZ-4216 Euro-4 engine designed for installation on upgraded GAZ vehicles. A batch of such engines has been produced for road tests.

Automotive components
Last year GAZ Group retained strong positions in the automotive component market: the company is among the three biggest Russian manufacturers with a share of at least 10% in all key segments (axles, suspension, stampings, iron castings, forgings, wheels and springs). Last year the revenue of GAZ Group’s automotive component business increased by 34%.

In 2011 GAZ Group and Bosal, one of the leading international manufacturers of emission control systems, signed an agreement to establish a joint venture at Gorky Automobile Plant. It is planned to use the products of the joint venture in production of GAZelle-BUSINESS vehicles and in contract manufacture of foreign branded vehicles at GAZ.

The company also reached an agreement with Bulten, Swedish manufacture of fasteners, to establish a joint venture. The joint venture will develop and manufacture fasteners for the automotive industry of Russia and the CIS, and for customers from other industries.

Last year the company proved that it remains one of the main suppliers of the automotive component industry in Russia and in the CIS. New automotive components were launched for all new products of GAZ Group.

Besides, GAZ increased sales of automotive components to outside customers by 27% - from 4.07 billion rubles in 2010 to 5.18 billion rubles in 2011. Last year the company implemented projects to supply products for international automotive component manufacturers localized in Russia. The range of products made for Knorr-Bremse (manufacturer of brake systems and engine components for trucks and commercial vehicles) was expanded, in 2011 sales of these products increased by more than 3.5 times.

GAZ Group also continued to broaden its product range increasing sales not only to the automotive companies, but to customers from other industries.

Construction and road-building equipment
In 2011 GAZ Group and Terex Corporation, a global producer of construction and road-building equipment, signed an agreement to form a joint venture to produce construction and road-building equipment in Russia. The joint venture will manufacture, market and sell certain Terex and all GAZ Group construction and road-building products in Russia. The joint venture arrangement will allow access to relevant technology and know-how that will help to upgrade the current product portfolio of construction equipment.