Russian Government predicts shrinkage in automotive electronics supplies

Russian Government predicts shrinkage in automotive electronics supplies


AvtoNovostiDnya.- The disruption of the automotive electronics supply chain will grow, leading to a snowball effect, creating relevant problems. Therefore, import substitution and a shift to domestic components seem to be the optimal way out of the predicament. The relevant statement has been made by the Russian Deputy Minister of Industry and Commerce Vasily Shpak at a round table meeting of the Federal Council.

As one may remember, the shortage of automotive components, primarily semiconductors, was mentioned for the first time in the beginning of the year. Toyota, Nissan, Ford, Honda, FCA, Volkswagen, Stellantis and other large car manufacturers had to reduce or suspend production consequently.

“Concerning automotive electronics, the course of the situation gets more and more obvious that the interruption in the supply chain will grow, complicating the circumstances even further in component availability. For that reason, the transition to domestically assembled Russian components is not only a matter of state policy, but also a survival issue, helping out the development of businesses” – Shpak said.

The same opinion is shared by the Russian Deputy Minister of Finance Andrei Zarenin. According to Zarenin, Russia has the necessary technology for the production of car components and it’s possible to replace a portion of the products manufactured abroad. However, the main problem lies behind the fact that the foreign companies deliver immediately with systems.

Avtovaz faced the same problem in June and the Lada production has been suspended at the enterprise on all main lines thenceforward. The Izhevsk plant of Lada is the only production site operating without any disruptions at the moment, manufacturing the flagship Vesta range.