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RUSSIA
in each case is similar and the mileage of the retreaded tyres under normal use will be 200 - 250 thousand km, at least as stated by the manufacturers. Thus, if we take the average, the prices of Moscow manufacturers are only 5 per cent bigger than in the provinces. At the same time over the last year, almost all manufacturers have raised their prices in the range of 10 per cent to 20 per cent due to the obvious Michelin remains one of the largest players in the Moscow retread sector
economic reasons, in particular the rapid devaluation of the ruble, with the increases of prices for fuel, electricity and so on. We have no specific statistics here, but in general assume that across all Russian regions the increase of prices remains almost the same.
RB: What is your forecast for the further development of the situation on the Moscow market?
DG: We do not expect any major changes. The current crisis has, of course, brought definite challenges for the entire industry, but our segment has certain specific characteristics, as since 2011 it has showed twofold growth, and even with some difficulties, it will continue to grow in the future. Our task now is to maintain the existing capacities, and to make sure that investors will not want to leave the country. If we achieve this, then after a couple of years we will certainly get back to sustainable growth.
due to higher prices, but given the fact that we focus on the budget segment of the tyre market, such a step would have killed every demand.
RB: Is there any difference between the prices of retreads in Moscow and the provinces?
DG: Usually the price is higher
by 5-10 per cent, but everything depends on the specific manufacturer. In particular, the Volga Tyre Company conducts the retreading of tyres with a rim diameter from 17.5 to 22.5 mm for RUB 10,500 (US$ 160). It's for comparison. At the same time RK-Raifen, conducts the same work for RUB 11,500 (US$ 175). The technology used