Russian Auto Mobile Industry: Brand Challenges and Preferences

This report provides a detailed analysis of the Russian auto mobile industry, focusing on the challenges faced by manufacturers and the reasons behind the preference for foreign cars. The report begins with a topic description, outlining the scope of the industry and the issues at hand. It then defines the research aim and objectives, setting the stage for the investigation. A comprehensive literature review follows, exploring various aspects of the Russian automotive market, including production, sales, and the impact of government policies. The review also delves into the challenges manufacturers face, such as environmental impact, fuel economy, and competition. Finally, a critical review of an article is included, providing an in-depth analysis of a specific source related to the topic. The report utilizes both primary and secondary data sources to provide a well-rounded perspective on the subject. The investigation aims to understand the Russian auto mobile industry and brand challenges faced by manufacturers and why people in Russia prefer foreign cars.

The Russian Auto Mobile Industry The
Brand Challenges Faced By
Manufacturers Why Do People In
Russia Prefer Foreign Cars

Table of Contents
Topic: The Russian auto mobile industry The brand challenges faced by manufacturers Why do
people in Russia prefer foreign cars.................................................................................................3
SECTION 1: TOPIC DESCRIPTION ............................................................................................3
SECTION 2: RESEARCH AIM AND OBJECTIVES ...................................................................4
SECTION 3: LITERATURE REVIEW .........................................................................................5
SECTION 4: CRITICAL REVIEW OF ARTICLE ........................................................................8
REFERENCES..............................................................................................................................14

Topic: The Russian auto mobile industry The brand challenges faced by
manufacturers Why do people in Russia prefer foreign cars
SECTION 1: TOPIC DESCRIPTION
The Auto mobile industry mainly performs business activities associated with designing,
developing, manufacturing, marketing and selling motor vehicles worldwide. On an average
approximately 70 million vehicles are being produced worldwide which include range of variety
that is cars, commercial vehicles sports vehicles etc. It has been analysed that foreign car
manufacturers are providing higher quality of vehicles has minimal number of defects
(Martyshenko and Vinichuk, 2016). Also, vehicles introduced by these manufacturers are quite
economical as compared to the cars introduced by Russian manufacturer. The main reason
behind this was that Russian economical condition is not that much strong which ultimately
creates issues for the car manufacturers to perform their work with effective financial support
from their nation. This ultimately increases actual production cost of their car. As a result, final
car which is delivered to Russian people is quite expensive. By observing all of these issues,
influence Russian people towards foreign cars is constantly increasing as they believes that
foreign cars are more effective as compared to their local manufacturers (Kumar and Steenkamp,
2013). Along with this, it has been further analysed that people belonging to Russia thinks that
foreign manufacturers are delivering good quality of cars to them at similar price. Also, at the
same level Russians are getting advance featured cars with negligible defects.
The present investigation has been initiated to develop knowledge on different challenges
faced by car manufacturers of Russia from foreign manufacturers. Also, overall details will
going to be gather on identifying that why Russian people are getting more influenced towards
foreign cars. For gathering information over this, investigator will make use of different sources
of data collection that is both the primary as well as secondary (Andreff, 2016). Here, primary
source of data collection means that investigator will directly gather information from chosen
people. In this, direct conversation takes place. In this investigation researcher will make use of
peer review method for gathering information on the proposed topic. On the other hand,
secondary tools of information accumulation means the usage of information that has been given
by other authors in the past. Secondary data will be used for developing literature review section.

It has been seen that for gathering detailed information researcher will make use of different
articles, books, journal, newspapers and other published data for developing detailed knowledge
on this topic in effective manner (Kurilov, 2013). Along with this, investigator will also make
use of qualitative method in order to analyse the overall information in detailed manner. The
main reason behind choosing qualitative method for analysing overall information is to attain
research outcome with human based perception. It can be further said that qualitative method is
supportive in evaluating overall information developed from different sources by looking at all
of its associated aspects (Ayios, 2018). This in result contributes in drawing valid research
outcome and answers to all objectives related with the topic. In context of present research,
investigator will use qualitative method for developing higher understanding over brand
challenges faced by manufacturers and Why do people in Russia prefer foreign cars.
SECTION 2: RESEARCH AIM AND OBJECTIVES
This refers to be the imperative part of a research as it is efficacious in aiding the whole
exploration in assorted way to arrival at the key results and outcome. This sphere of investigation
is significant in providing an appropriate outline specification to the investigator to execute the
overall research in accurate way to drawn valid and reliable results. In the existing context,
research is mainly created over examine the Russian auto mobile industry and The brand
challenges they faced by manufacturers and Why do people in Russia prefer foreign cars
(Meshkova and Moiseichev, 2016). Thus, this is a wide area of study which is mainly executed
to explore understanding in regards to the Russian auto mobile industry. The basic challenges
they mainly faces by the manufactures, Therefore, the another area to be explored is the reasons
why do people prefer foreign cars in Russia.
In summary of the issues which were observed through the researcher and based the
execution of this proposal are:
Research Aim
An investigation aim mainly expresses the purpose or an aspiration of the investigation
study; it mainly summarises in a single sentence which represents the intention that an
investigator hope to attain at the end of a investigation project (Siegelbaum, 2011). The key aim
of this existing research is "To examine the Russian auto mobile industry and The brand
challenges they faced by manufacturers and Why do people in Russia prefer foreign cars".
Therefore, the overall study is based on Russian auto mobile market as in this proper exploration

is executed over the auto mobile industry of Russia and the challenges they face and the reason
for that people do prefer foreign cars in Russia.
Research Objectives
This section of investigation is interconnected with the aim of the research as in this
small statemented are developed to explore the intention in effective manner. Research
objectives are mainly encompasses over the aim of the research (Gurkov, 2014). Along with this
lines, research objective is also recognised as a clear, concise and declarative statement that
renders direction to the researcher to analyse the variables in appropriate way.
 To develop understanding regarding the Russian auto mobile industry.
 To explore knowledge regarding the challenges they face by manufacturers.
 To identify the reasons why do people prefer foreign cars in Russia.
The investigator after analysing the auto-mobile industry of Russia and getting in contact
with academic life with the support of assorted models and theories to attain competitive base
and ensure the sustainability of the organisation (Simachev and et. al., 2013). Therefore the aim
of this investigation is to determined the Russian auto mobile industry and The brand challenges
they faced by manufacturers and Why do people in Russia prefer foreign cars. However, for the
purpose of attaining objectives it is essential for the researcher to understand the auto mobile
industry of Russia (Hamin, Baumann and Tung, 2014). In addition to this, also develop
knowledge regarding the issues the auto mobile industry may face by the manufacturers and the
reasons for which people in Russia prefer foreign cars. This is the most important area of
investigation as it determines the major intention of conducting the research and also expresses,
what the study is all about. This region of investigation is efficacious in exploring the academic
skills of individual that would be effective in developing an investigation in more liable manner.
SECTION 3: LITERATURE REVIEW
The Russian auto mobile industry.
The automotive industry is comprises a wide range of businesses and organisations that
are included in the plan, evolute, manufacturing, marketing and selling of motor vehicles. Auto
mobile is recognised as the world's widest economic sectors by analysis of its revenue (Luo, Sun
and Wang, 2011). In the year of 2008, around 70 million motor vehicles involving cars and
commercial conveyance were manufacturer worldwide. As per the opinion stated by V.N.
Borisov and O.V. Pochukaeva, 2011, The Russia is recognised as one of the largest great power

through the United States through the year of 1945 until it breaks up in 1991. Russia is
considered to be the one of the fifteen union republics which belongs to the Union of Soviet
Socialist Republics or it is commonly called as Soviet Union (Dawisha, 2011). As per the views
expressed by Hogan Lovells, 2019, the auto-mobile industry has performed an effective role in
the Russian economy. Thus it is one of the 12 widest auto-mobile markets globally that are relay
upon the sales of car. Auto-mobile production is recognised to be the most effective industry in
Russia and it is based on employing 600000 employees or 1 percent of the country's overall
workforce. In the year of 2018, Russia have produced around 1767674 vehicles and ranking as
13 among the car producing nation and accounting for around 1.8 percent of the world wide
production (Zaitseva, Goncharova and Androsenko, 2016). A wide proportion of all the auto
mobiles produced in Russia is manufactured through 19 major businesses, that are in-consist
over assorted statistical information, approximately 400000 people are employed in
manufacturing facilities and around one million people are hired by the authorized and dealer
businesses. According to the opinion stated by Zuev, Aleksandr Borisovich; Levina, Evgeniya
Aleksandrovna; Pokatovich, Elena Viktorovna, 2016, In today's modern business era, the
automotive industry is recognised through the growth of local production capacity, provision of
government subsidies or guarantees to market participants that are targeted at managing buyers
demand and reduction of the overall production costs. In addition to this, the construction of
advance and new plants in Russia and investment in the same business are also determined
through the key auto mobile manufacturers (Kasperk, 2012). The investigation represent the
positive dynamics in the sales of a new auto mobiles, Therefore, in the year of 2018, the sales of
auto-mobile has developed around 12.8 percent which is high as compared to the sales of 2017
and the it is mainly reached at 1.8 million auto mobiles. According to the opinion stated by Jake
Cordell, 2020, the Russian car market is supported for a turbulent year ahead, as the most
developed business warn sales are significantly to decrease and more manufacturers could give
up on Russia altogether. Currently the sales of new car has decreased through 2.3 percent by in
2019 to around 1.76 million units, in addition to this, in the year of 2020 it will fall around 2.1
percent. The government of Russia has continues to develop an effective support programs for
both car manufacturers and the customers. Thus, the auto-mobile industry stirring the
development in demand and production figures (Tang, 2012). Furthermore, the privileges are
provided to the producers and these are significantly connected to the preferential duties on

components were transformed and owing to the duties accepted through the Russian Federation
when joining the World Trade Organization and were exchanged through other likings, involving
throughout exemptions for exports in respect to hold out the development of the automotive
industry.
The challenges auto mobile industry face by manufacturers.
According to the opinion stated by Nina Samodajev, 2019, auto-mobile is recognised to
be the most developing industry and perform an effective participation in the economic
development of a region or country. Manufacturer plays an effective role in progression of the
auto-mobile industry as the overall sales of the business is based on the manufacturing of the
products (Andreff, 2016). According to the opinion stated by Diana Karliner, 2018, Therefore, in
the context of auto-mobile, manufacture are recognised to be the major concern as they directly
affects the functioning of the business, Therefore are assorted challenges that are are faced by the
auto-mobile industry by manufacture, in which some are associated as under:
Environmental Impact: The world wide auto-mobile industry is under the pressure through
environmental and consumer demands, thus the industry is facing issue in context of fuel
economy, gas emissions, safety and affordability (Meshkova and Moiseichev, 2016). Therefore,
the high competitive pressures on quality, performance, cost and manufacturability of the
vehicles today are bigger than ever.
Fuel economy and CO2 emission: In today's modern business era, it recognised to be the major
issue which is faced by the automotive industry. According to the views analysis of Sangeeta
Ray and Pradeep Kanta Ray, 2011, Vehicles are mainly producing greenhouse gas emission
during their entire life cycle and the total CO2 emission in EU is around 20 percent. This is the
key issue which affects the overall functioning of the auto-mobile industry.
Technical and Economical challenges: As per the opinion analysis of the respondents Waguih
ElMaraghy, Hoda ElMaraghy. Tersuo Tomiyama, Laszlo Monostori, 2012, New mobility
develops new products and tools, therefore, businesses in auto-mobile sector has focuses over
developing electric vehicles, hybrid vehicles, hydrogen vehicles, car sharing, robot cars etc. Thus
all these needs a strong and well funded research and development but also a proper
infrastructure and new policies and regulations implemented by the government (Langbein,
2016). However, the sales of electric car is not high as these are not much popular in nature, thus

car sharing is effectively incorporated in Russia. For example, Russia is recognised to be the first
market which develops Blablacar with more than 15 million users.
The reasons why do people prefer foreign cars in Russia.
As per views given by Schweitzer (2016), Russians prefer to use foreign cars due to their
innovative design which are more attractive and satisfy their needs as well as desires. It is
observed that the designs of foreign cars which is responsible for increasing the quality of
product due to which citizens of country mostly prefer them. However, the automotive industry
of Russian face the problem of financial crisis which become reason behind not developing any
innovative design of car which is much capable to fulfil actual needs and demands of people. In
addition to this, lack of innovation in Russian auto-mobile encourage citizens to focus on foreign
cars to buy them. This condition of country welcomes foreign auto-mobile companies to expand
their business in Russia because they can gain more profit in business due to having positive
response of people.
According to the opinion of Nichols (2017), the another reason is lack of advanced
technology due to which features of Russians vehicle remain ineffective. Due to this problem,
auto-mobile industry of Russia have face many ups and downs because they have major issue of
funds which are important to innovate car models and apply creative features. It is well known
that creative features are responsible for attracting new customers along with retaining the
current ones to enhance profitability. According to the views expressed by Vladimir Popov,
2012, Auto-mobile industry of Russia has lost the clients due to old models of cars and do not
able to fulfil desires of people which impact negatively on demand of Russian cars. However, it
is essential for them to gather funds for adopt advanced technology to make their vehicles more
effective and satisfying which helps to increase demands of Russian cars. Moreover, the Russian
people prefer foreign cars due to their innovative features and satisfied models.
SECTION 4: CRITICAL REVIEW OF ARTICLE
Critical Analysis of a Text
Full Reference of Peer Reviewed Text:
Gurkov, I., 2014. Management practices in Russian manufacturing subsidiaries of foreign
multinational corporations: challenging some beliefs about contemporary Russian industrial
management. Post-Communist Economies. 26(2). pp.220-240.

1. What review question am I asking of this text?
(e.g. what is my research question? why select this text? does the Critical Analysis of this
text fit into my investigation with a wider focus? what is my constructive purpose in
undertaking a Critical Analysis of this text?)
My investigation question is based on the study of examine the Russian auto mobile industry and
the brand challenges they may faced by manufacturers and Why do people in Russia prefer foreign
cars. Therefore the selected article is best suited for rendering information in regards to this
specific area. Thus, this article is effective in exploring all the investigation aspects like the
challenges that auto mobile industry has faces and the reasons for which people do prefer foreign
cars in Russia, in effective manner and effective in generating critical analysis that supports the
overall investigation in appropriate direct for arrival at the key results. The major intention of
conducting critical analysis over this present intended article is to analyse the issue in efficacious
way via the suitable support of information.
2. What type of literature is this?
(e.g. theoretical, research, practice, policy? are there links with other types of literature?)
The considered article is a investigation paper as it provides outcome of the information
accumulation of the information to analyse the model examining the auto-mobile industry of
Russia, the major challenges they faces through the manufacture and the reasons for that people in
Russia prefer foreign cars.
In the end, it has also been trace as the policy literature, because the provided summary and
implications for business and managers that basically aim to provide some advices for the
businesses and ask to read the full article.
3. What sort of intellectual project for study is being undertaken?
a) How clear is it which project the authors are undertaking? (e.g. knowledge-for-
understanding, knowledge-for-critical evaluation, knowledge-for-action, instrumentalism,
reflexive action?)
The selected article is effective as it is suitable in providing appropriate knowledge in regards to
the area of examining the Russian auto mobile industry and The brand challenges faced by
manufacturers and Why do people in Russia prefer foreign cars. This provides in-depth knowledge

to develop a critical evaluation that supports the outcome of the research.
b) How does the sort of project being undertaken affect the research questions addressed?
(e.g. investigating what happens? what is wrong? how well does a particular policy or
intervention work in practice?)
The investigation is mainly executed to analyse the Russian auto-mobile market therefore, it is an
effective academic research which is mainly implemented to determine the major reason of
decreasing the sales of car in Russia and the reasons for that people do prefer foreign car in Russia.
As per the analysis of the project it has been analysed that, Russian Auto-mobile industry should
adapt advance and highly effective technologies in respect to provide appropriate facilities with
high quality vehicles.
c) How does the sort of project being undertaken affect the place of theory? (e.g. is the
investigation informed by theory? generating theory? atheoretical? developing social
science theory or a practical theory?)
The present research is informed through gathering information through the articles, in this
theories are developed to generating better understanding in regards to the specific area of work.
d) How does the authors’ target audience affect the reporting of research? (e.g. do they
assume academic knowledge of methods? criticize policy? offer recommendations for
action?)
In the context of this present exploration, audiences are targeted on the basis of academic
knowledge, thus in this individual are selected who are having appropriate idea in regards to the
selected investigation area.
4. What is being claimed?
a) What are the main kinds of knowledge claim that the authors are making? (e.g.
theoretical knowledge, research knowledge, practice knowledge?)
The investigation into consideration is effective in developing the theoretical, research and
practical knowledge as this study will be effective in attempting the practical tasks related to the
similar field in effective manner. The theoretical knowledge supports in enhancing the

understanding regarding the Russian-auto-mobile market.
b) How clear are the authors’ claims and overall argument? (e.g. stated in an abstract,
introduction or conclusion? unclear?)
The overall argument and assertion of the researcher are clear as this article is effective in
generating suitable information that assistance of the research in significant direction. The overall
description regarding the selected investigation area is stated in the abstract as it render the overall
intention of conducting the research.
d) With what degree of certainty do the authors make their claims? (e.g. do they indicate
tentativeness? qualify their claims by acknowledging limitations of their evidence?
acknowledge others’ counter-evidence? acknowledge that the situation may have
changed since data collection?)
The investigator has qualify their claims by acknowledging limitations of their evidence, thus the
investigator has gather accurate information in the context of executing the work in right manner.
e) How generalized are the authors’ claims – to what range of phenomena are they claimed
to apply? (e.g. the specific context from which the claims were derived? other similar
contexts? a national system? a culture? universal? implicit? unspecified?)
The authors claim is generalised as it is supportive in determining accurate and effective outcome
through a specific area that is based on Russian auto-mobile market. The researcher has gathered
information on the chosen study phenomenon for the intention of overcoming the content in
appropriate way.
5. To what extent is there backing for claims?
a) What, if any, range of sources is used to back the claims? (e.g. first hand experience? the
authors’ own practice knowledge or research? literature about others’ practice knowledge
or research? literature about reviews of practice knowledge or research? literature about
others’ polemic?)
The authors own practice cognition and investigation is the most effective source which could be

applied to back the claims, as the individual knowledge could be beneficial in executing the work
in right direction.
b) If claims are at least partly based on the authors’ own research, how robust is the
evidence? (e.g. is the range of sources adequate? are there methodological limitations or
flaws in the methods employed? do they include cross-checking or ‘triangulation’ of
accounts? what is the sample size and is it large enough to support the claims being
made? is there an adequately detailed account of data collection and analysis? is a
summary given of all data reported?)
If in case the investigation is relay on authors own investigation that the range of sources are
competent, thus the investigator gather reliable information through their own perception analysis.
Therefore, methodological selection is also in the right flow to assist the whole investigation in
appropriate way. The investigator has made the appropriate selection of sample size for the reason
of generating accurate results on the specific area by observing the views and opinion of others.
6. To what extent are claims consistent with my experience?
On a high extent the claim consistent with my experience, thus, the present articles is appropriate
in determining my cognition in relation to the region of analysing the Russian auto mobile
industry and The brand challenges they faced by manufacturers and Why do people in Russia
prefer foreign cars. Therefore, my personal experience mainly helped in out in gathering
information through considering the article in appropriate manner. As my ability of conducting
investigation has also enhanced which would be add in my experience and this can be efficacious
for me in executing my future exploration in more liable way.
7. What is my summary evaluation of the text in relation to my review question or
issue?
a) How convincing are the authors’ claims, and why?
The claims of authors are very much disillusioning as the articles is effective in providing in-depth
knowledge regarding the objectives of the research like, the article explore about the challenges
the auto-mobile industry has faces by the manufactures and the reasons for which people in Russia