One and a half year ago (“Delovoy Petersburg”, 18.02.2005) we wrote about the commissioning of the new motor works of the CJSC “YAROVIT MOTORS” manufacturing heavy-payload trucks. We often see the bright yellow YAROVIT eye-catchers in the city streets, but there is nothing we know about the fate of the factory since its inauguration.

And here is some fresh news: Mr. S. Ye. Afanasyev has been appointed Director General of the CJSC “YAROVIT MOYORS” and the forthcoming autumn exhibitions in Saint Petersburg (“Russia’s Industrialist”, 25 - 28.09.2006and “Auto + Motor Mechanics”, 25 - 29.10.2006) will display new models of the factory truck line.

 

NEW DIRECTOR GENERAL

 

Afanasyev Serguei Yevgenievich, 47 y.o. Since his university student days had worked at Minsk Automobile Plant. Within 26 years of his work record at the factory had ascended from electrician to shop superintendent. The latest post (1998 - 2006)was Head of Finance Department and Deputy Financial Director of “BelavtoMAZ” Production Amalgamation. Laureate of MAZ Works Award.

In the opinion of the new Director General, the factory has grand prospects. First and foremost, this is connected with the great demand of Russia’s economy in heavy-duty severe service trucks.

Russia’s truck fleet numbering 4.5 million cargo vehicles is direly worn out. About 83% of the trucks, i.e. 3.9 million units, have to be written off. In different regions of the country the age of vehicles is from 9.4 to13.6 years. All in all, 12.4% of Russia’s truck fleet is older than 5 years and about half of the vehicles are over 10 years old. Renovation of the country’s truck fleet is a topical and vital objective.

Taking into account the fact that Russia is a country whose economy rests largely on raw materials, the necessity of radical reformation of the cargo vehicle fleet of the extracting industries and saturating them with heavy duty vehicles is ripe.

 

YAROVIT MOTORS COMMODITY NICHE

 

YAROVIT MOTORS emergence on the automotive equipment market was preceded by searching for a commodity niche, i.e. a segment of the market which was unoccupied or partly vacant, where sales of vehicles would bring financial success and result in profits. Payload is a simple and natural parameter by which the consumer judges and compares various competing truck models.

Until the year 1996, vehicles produced in the CIS had been the principal players on Russia’s dump truck market. These were represented by roadsters of up to 25 ton carrying capacity and over 30-ton payload quarry dump trucks (Fig.1).

 

Fig.1. Carrying capacity of dump trucks on Russia’s market until 1996

 

However, taking into account the fact that quarry dump trucks of 30 to 45 ton payloads are low-efficiency vehicles (high operating costs pitted against low carrying capacities) and impossibility of their operation on public roads (with the haulage distance legs constantly increasing), the company BelAZ gave up their production. Currently, BelAZ produces dump trucks whose payload starts from 45 tons.

Thus a commodity niche emerged, that of 25 to45 tons. Both the CIS producers and the foreign companies that came to Russia’s market rushed into the vacant dump truck niche. Practically all the CIS manufacturers developed new heavy-duty truck models, and distribution of roles on the market changed (Fig.2).

 

 

Fig.2. Carrying capacity of dump trucks on Russia’s market in2006

 

As we see, there is an obvious trend toward greater payloads of dump trucks. Whereas in 1996, 20-ton payloads were attainable only for two manufacturers (MAZ and MZKT) to produce, within ten years the threshold was negotiated by all of the CIS motor vehicle manufacturers.

However, production of dump trucks of such high payloads, while staying in the roadster category, is no easy task. Its resolution requires developing a special vehicle design, which is impossible using the basic chassis, as well as calls for a special high-technology production facility, which is impossible in the mass-production conditions.

To date, the CJSC “YAROVIT MOTORS” is the only manufacturer represented on Russia’s market which is capable of fully satisfying the demand of the clients in 25 to 43-ton payload dump trucks. The assertion is also valid for chassis of roadster trucks mounting special-purpose superstructures and rigging of 29 – 49 ton carrying capacity.

 

 

Employment of YAROVIT trucks will enable to considerably increase the volume of work performed within the unit of time while ensuring high efficiency. Coupling the dump trucks with trailers enables to attain the carrying capacity of the truck trains of from 62 to80 tons. Introduction of heavy-duty vehicles in the country’s truck pools will contribute to reducing the numerical strength of the required fleet.

 

YAROVIT MOTORS TRUCK LINE

 

The YAROVIT Motors truck line is based on the “from simple to complex” principle. The essence of the approach consists in that the most sophisticated models, the 10х8, 8х8, 6х6 are used as the basic ones to build the truck line by further simplifying the basic formulae. The costs of creating intellectual property (the design and production process documentation) are thus considerably minimized.

Presently, the company commodity nomenclature represents trucks of 6х6, 8х4, 8х6, 8х8, 10х8 wheel formulae which provide for the required payload characteristics, cross-country capacity and can mount a broad spectrum of superstructures and rigging.

In the year 2006 the company advanced on the market 12 various models of dump trucks that have passed field and operational tests and certification. This year’s novelties list: model A5301D 8x4 wheel-formula dump truck capable of carrying over 35 tons, model A5401D 8x8 coal truck of 34-tons payload and built-up platform which will be exhibited at the “Russia’s Industrialist” show in September 2006. Very shortly one more new vehicle, a bolster truck, will roll out from the factory gate.

 

PRODUCTION PROGRAM

 

In the years 2005-2006 the company has been solving a number of complicated problems connected with production development, personnel recruiting and training, vehicle tests, debugging and certification, organization of warranty and after-sale servicing. Today one can state that the plans set forth have been completed. YAROVIT trucks have successfully passed the tests and certification, shown excellent results of operation with companies and enterprises, and have been welcomed on the Russian market for their impressive performance.

YAROVIT dump trucks have found domicile in Kuzbass the largest coal basin of the country, over the Polar Circle, in Tumen oblast and in Kazakhstan. There is a demand for heavy-duty trucks in Moscow and Saint Petersburg.

So far, the company production program rests exclusively on the already signed contracts. The sales figure for the year 2006 has to reach 60 vehicles. From September through December 2006 the company fulfills orders for manufacture of 57 vehicles.

Currently, the production program for the year 2007 is being formed: contracts have already been signed to deliver 130 trucks. It is planned to step up the production volume in 2007 to 250 vehicles (around 20 units monthly).

 

PROSPECTS

 

The production site of YAROVIT MOTORS (4, Feodossiyskaya street) has the capacity to put out up to 500 vehicles per year. It is already obvious that this is insufficient for the market demand in this vehicle class. Expansion is a must.

In2007 the production capacity has to be augmented up to 700 vehicles per annum by expanding the assembling shop floor space. This will be enough to meet the market demand until the year 2010.

Presently, the company develops a production upgrade plan which will stipulate for erecting new production shops of up to 30,000 sq.m floor space in one of the suburbs of Saint Petersburg, setting up a machining facility which will manufacture a wide gamut of location parts, and organizing a joint venture putting out the vehicle shafts and driving axles. The planned production capacity of the works is 1800 vehicles annually. Apart from stepping up the production volume, implementation of the project will enable to promote the quality and reliability of the products and bring down the vehicles’ production costs. The project will span over three years and will be commenced in 2007.

Implementation of YAROVIT MOTORS truck project will be an important landmark in consolidation of Russia’s economy and satisfying its demand in efficient cargo vehicles. For Saint Petersburg the project fulfillment spells new investments and more jobs (currently the works employs 130 workers and by the year 2010 it will be over 350 employees), and more taxes in the city budget.