KAMAZ was included into the list of Russia’s most expensive public companies at year-end 2016

According to Rossiya Segodnya Media Group, KAMAZ PTC (part of Rostec State Corporation) was included into the list of Russia’s most expensive public companies at year-end 2016.

KAMAZ is 82nd in the top 100 of the country’s largest companies in terms of market capitalization. Moreover, Chelny’s truck manufacturer is the leader among the listed companies in the ranking of automakers.

“In general, the list of one hundred largest public companies in Russia didn’t change much for a year,” the authors of the rating note. “There are only seven new companies in it.” So, there are mainly mineral and financial companies in the top ten. These enterprises’ capitalization increased on average by 55% for a year. KAMAZs capitalization increased by 68.5% in 2016.


Russia Truck Giant Eyes ASEAN Market With Vietnam Expansion

Last week, the director-general of Russia’s biggest truck manufacturer, Kamaz, said that the company plans to boost the export of its trucks to Vietnam as part of a broader move to expand its presence in other Southeast Asian markets.

KAMAZ Director General Sergey Kogogin told Russian state-owned TASS news agency that the firm plans to expand its presence in Vietnam, with a view that more Kamaz trucks could also be then supplied to neighboring ASEAN countries such as Laos and Cambodia.

Kogonin’s statement that KAMAZ intends to boost its Vietnamese presence is no surprise. KAMAZ has had a long relationship with Vietnam, with the first truck delivered to the country back in 1979. And Vietnam’s attractiveness as a country has only grown in recent years, with it becoming the top export market for KAMAZ last year, when the Vietnam and the Eurasian Economic Union (EAEU) inked a free trade pact. Kogonin said that in 2016, KAMAZ exported 1,855 trucks to Vietnam – which constituted a fifth of its overall exports – and that around 30 percent of that went to the Vietnamese military.

Kogonin’s emphasis to TASS that KAMAZ’S policy is “aimed at long-term presence [in] the Vietnamese market, seen as a strategic one in the Asia-Pacific” is also not entirely new. The economic difficulties in Russia and Central Asian markets mean that KAMAZ has had to look elsewhere to boost exports, and booming Asian markets like Vietnam and India have been a key part of this reorientation.

But it is still unclear how exactly KAMAZ would make greater inroads into Vietnam, and how successful it will be. Kogonin said KAMAZ was thinking about boosting production facilities that it had established in Vietnam to add to its capabilities, and that it was in the process of analyzing prospects before determining its further strategy with respect to Asian markets. In fact, though KAMAZ has had joint ventures in Vietnam in the past that had helped it boost vehicle sales, progress had been slow and some previous moves to expand this further had been met with frustration. Conditions in place in Vietnam as well as the presence of other competitors in certain parts of the market have proven challenging previously and are likely to remain so in the future as well, despite recent inroads.

If KAMAZ does end up going forward with the plan, however, this could have effects not just on its prospects in other Southeast Asian markets, but for its role in Vietnam as well. For instance, some have speculated that improvements in its business model could increase the attractiveness of its products relative to other rival brands in Vietnam, including those from China that already face issues such as quality.


Dakar 2017, Stage 7: Sotnikov eats into De Rooy’s advantage

Dmitry Sotnikov secured his second Dakar stage in the first run of the event’s second week and decreased Gerard De Rooy’s lead to just two minutes.

For the third time in a row, the stage was not completed in its entirety due to poor weather conditions and was instead shortened to a 141km version.Sotnikov beat De Rooy by 4m25s at the finish while the former’s Kamaz teammates Eduard Nikolaev and Ayrat Mardeev were both eight minutes off the pace. Sotnikov passed Nikolaev for second place overall as a result but the latter is also just six minutes behind De Rooy. Iveco duo Ton van Genugten and Federico Villagra both beat De Rooy for second and third in the stage. That allowed Villagra to pass Renault’s Pascal De Beer for fifth with Hans Stacey sitting in seventh.