Russian government will support the car manufacturers with high localisation rates

Russian government will support the car manufacturers with high localisation rates

Autostat – Government support will focus on car manufacturers with high localisation rates in Russia. The relevant statement has been made by the Deputy Minister of Industry and Commerce: Alexander Morozov during the session of the OICA General Assembly – International Assembly of Automobile Manufacturers.

According to Morozov, the devaluation of the currency has temporarily increased the competitiveness of Russian car production, however, the insufficient localisation rates (40-70% depending on segments and OEMs) and small volumes have reduced the effect of devaluation. For that reason, the government’s efforts are aimed at increasing the localisation of car and component production, as well as demand stimulation. The concentration of government support around manufacturers with high localisation rates will continue in the future.

The conditions will also be created for the growth of exports, as stated by the Ministry of Industry and Commerce press office. Commercial vehicles and passenger cars are likely to become the segments with priority in exports, including foreign car manufacturers. The ministry expects a minimum increase of 25-30% in the exports of automotive industry and components next year. The main aim of the strategy is to maximise the potential of added value creation in Russian automotive industry in the medium and long-term.