Development Strategy of a Car Manufacturing Company in the Russian Car Market at the example of Sollers PJSC

The article analyses the dynamics of development of the Russian market of passenger cars and light commercial vehicles, investigates the strategy and competitive advantages of Sollers group of companies, which is successfully operating despite volatility of development of the Russian car market, as well as the need for a radical renewal of the model range of the company’s cars, the presence of excess production capacity and the departure from Russia of three foreign partners of Sollers group of companies in joint ventures: Fiat, SsangYong and Ford. Particular attention in the article is paid to Ford, a joint venture partner with Sollers PJSC, which left the Russian domestic market in 2019. This event, which had a negative impact on partners and clients of the company, was caused by several

circumstances. Besides, the article identifies the main directions of development of joint ventures Mazda Sollers and Ford Sollers (in terms of Ford Transit minibus, the only locally manufactured Ford model) and the possibility of expanding their export potential, including due to export of engines, spare parts and components.

The article pays close attention to introduction of new technologies in Sollers PJSC and other companies, development of digitalisation in development and production of new models, creation of its own telematics platform that allows to connect a car to the Internet and control it remotely, including starting the engine.

The author examines in detail a new consumption model in the car market associated with refusal of buyers to own a car and with emerging choice of new services regarding subscription and exchange of cars, their development in foreign and domestic markets, as well as offers the analysis of successes and failures of foreign automakers in providing subscription services.

The main purpose of the article is to study the strategy of Sollers PJSC in the domestic and foreign markets, auxiliary purposes refer to the analysis of the domestic market, change in the consumption model and provision of new services, study of reasons for departure of foreign partners of the company.

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