The Ministry of Economy expects minimal growth in Russian automobile industry in 2017

The Ministry of Economy expects minimal growth in Russian automobile industry in 2017

TASS – Statistical growth will take place in the automotive sector in 2017, however at a very low level. The relevant statement has been made to the journalists by the minister of economic development: Alexei Ulyukaev.

“Statistics may show the beginnings of growth. However, this growth will be minimal” – said the minister. According to Ulyukaev, there’s a hope for pent-up demand from the population, which will play its role in 2018.

At the same time, the minister has noted that the government support for the automotive industry needs to be reoriented, from company support to assistance in exports. “It’s necessary to promote the automotive industry. However, so far our export figures are low. The government support should be reoriented from basic support for companies in automotive industry to support on export opportunities” – the minister said, as quoted by TASS. In this regard, Ulyukaev has highlighted the importance of subsidising the transport costs of the exporters.

Russian car industry was at risk, due to the excess capacity, which came into existence during the years of sharp expansion of foreign car companies in the Russian market. Major manufacturers such as: Renault-Nissan, Toyota, Ford etc. operate in the market. The automotive industry has become the main beneficiary of government support, in time of crisis.

In turn, the presidential aide Andrei Belousov has stated during an interview with TASS that foreign companies are exploring export opportunities for the Russian automotive industry, which appeared due to the devaluation of the ruble and the shrinkage of the domestic market.

Earlier, the Russian minister of industry and commerce: Denis Manturov has stated that the exports of automobiles manufactured in Russia must reach 25% of the total car production of the country by 2020. Manturov has noted that support measures on exports have been taken, such as: compensation of transport costs of exported vehicles and the adaptation of products to the standards of the acquiring countries. The measures also apply to vehicles, manufactured by foreign companies under the full-cycle scheme in Russia.