Considering production in Egypt

Russian automaker GAZ Group has begun producing stamped body parts for the Mercedes Sprinter van, reports Prime News. The parts are being manufactured at its Gorky Automobile Plant in Russia, and are then sent to the company's Nizhniy Novgorod (Russia) plant, which is responsible for local production of the vehicle. Separately, the GAZ Group has expressed interest in setting up a new production base in Egypt. Pavel Sereda, the head of the automaker's light commercial vehicle (LCV) division was quoted as saying, "We already supply our equipment to Egypt, they like our product. It means that we may enter the market without a problem and start organization of production in order to cut costs". He further added that GAZ considers Egypt as the centre of presence in the whole region.
 

Significance: GAZ Group has manufactured the Mercedes Sprinter since 2013. Total Russian output of the model stood at almost 5,200 units during 2014 according to IHS Automotive, although this is expected to drop to around 4,000 units this year. Gaz's main product focus includes LCVs, medium and heavy-duty trucks and buses, while it also manufactures powertrain and fuel-supply systems, as well as axles, suspensions, stampings, iron castings, forgings, wheels and springs. The company hopes to increase its market share in the domestic LCV market from the current 50% to nearly 55% during 2015. Sereda stated, "The whole market and all competitors are falling by 40%, we are falling by 20%. Of course, we are subject to negative impact of the market, just like everyone else. But we are falling less than others, which means that we are increasing our share. We had a 50% share last year, this year it will be 54–55%". The automaker targets to achieve as many as 62,000 units in sales and production this year, with plans to increase export sales alone by 20%.

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