The Russian government is formulating a strategy for the development of automotive industry until 2025

The Russian government is formulating a strategy for the development of automotive industry until 2025

Finmarket – Russian president Vladimir Putin has given a series of instructions to the government to speed up the substitution of the imports of “critical and top priority products and technologies in automotive industry”, according to Kremlin website.

The Cabinet has been instructed to formulate and confirm a strategy on the development of automotive industry and component production for the period until the year 2025, aimed at ensuring the substitution of the imports of the aforementioned products and technologies. The new strategy is expected to improve market prediction and the exports of automotive technologies, which will ensure the effective functioning of the automotive industry in parallel with the current economic trends. The requirements of the state and the municipal authorities in providing passenger and freight services will also be identified separately;
-Priority areas in the scientific and technological development of Russian automotive industry and formulation of a perspective for automotive technology, taking the transition in global trends towards the serial production of electric cars into consideration;
-Support mechanisms for the development of automotive industry, aimed at increasing the export volumes and the share of automotive technology purchases from state owned Russian-origin companies and natural monopolies;
-Mechanisms for the development of component production and localisation of the production of automotive technologies in Russia;
-Mutual coordination of the development of automotive industry and component production, by improving relevant industries, such as: metallurgy, chemical and electrical facilities.
In addition, the government was instructed to include measures to “Automotive Industry”, which is a subroutine of the government programme: “The Development of Industry and Improving its Competitiveness”, for the implementation of the formulated strategy, taking the current economic trends into consideration, with mechanisms to calculate the localisation rates for automotive technologies and components and their assignment to products of Russian origin, using aggregated components where necessary. Furthermore, the changes to the programme should stimulate the production of components, their parts, raw materials and technology and make these products available to car manufacturers, as well as the improving the conversion process of the used up properties of transport vehicles.

The government has also been instructed to update the organisations which represent the automotive industry with data on the localisation levels of their production and provide assistance in the conclusion of long-term contracts between car assembly plants and Russian component manufacturers over the entire process of the technological chain of production, in order to increase the competitiveness of Russian components, their parts and raw materials.

Another instruction proposes the preparation of a regulatory legal framework as to the gradual renewal of the automobile park.

Finally, the government was instructed to submit a proposal on measures of support to be given to automotive industry organisations, depending on rates of localisation in production, besides registration to Russian Federation laws in parallel with the scientific and technological activities conducted. The order appointed by the prime minister of Russian Federation Dmitri Medvedev is due for execution until 1 March 2016.