Russian Government plans to boost car exports to 240,000 vehicles in 2025

Russian Government plans to boost car exports to 240,000 vehicles in 2025

Kommersant – The Ministry of Industry and Commerce has announced a development strategy for car exports until 2025. According to the baseline scenario, an annual export growth of $4.9 billion is expected: to 240,000 vehicles per year (10% of the production) and $1.6 billion worth of auto components. In an ambitious scenario, the exports will rise to $7.8 billion: 400,000 automobiles and components by 16%, generating $2.5 billion. Government subsidies will amount to 136 billion rubles between 2018-2015 under the baseline scenario and to 215 billion rubles under the ambitious scenario, as written in Kommersant. 

CIS-countries, the Middle-East (Iran, Lebanon, Jordan), a number of European countries (Czech Republic, Germany, Austria), Asia (India, China), Africa (Egypt, Algeria, Tunisia, Ethiopia) and several countries from Latin America and Southeast Asia are named as car exports markets with priority for Russian car manufacturers. CIS-countries, Iran and Lebanon are considered as priority markets for international automakers, alongside Turkey, South Africa, Egypt and Tunisia. 

In general, there are no fundamentally new car exports support measures in the project. There are plans to formulate a stable export support system for 8-10 years, in order to evaluate business cases for the life cycle of the model. It’s expected to develop the suppliers of subcomponents and second and third level materials to reduce costs and the dependency on the ruble exchange rate. Also, emphasis is put on the elimination of system barriers and costs during the imports of products to foreign markets (agreements on free trade zones, harmonization of technical regulations with international standards). Targeted programmes are planned to be implemented, for the support of international car manufacturers making production for exports in Russia (80-100,000 vehicles annually for 7-10 years). The figures should give an indication for a baseline capacity for future localisation.

Related: The conditions for car exports subsidies in Russia have changed