RusAutoNews.Com – Russian Government will tighten controls over localisation in car production. The Ministry of Industry and Commerce has formulated the eligibility conditions for the new government support regime in the automotive industry to replace the industrial assembly agreements, which will expire in 2018-2020. The draft government decree identifies a minimum set of technological operations for the recognition of key automotive components (engines, gearboxes, electronics, etc.) manufactured in Russia. The document will be discussed with car makers, as written in Vedomosti.
The industrial assembly agreement provides the companies with incentives for component imports (zero fees, as a general rule) and admission to government programmes, in return for improvements in localisation and capacity. The minimum rate of localisation is 60% for automobiles and locally manufactured engines and/or gearboxes must be used in at least 30% of the vehicles.
Now, the Ministry of Industry and Commerce wants to create incentives for an even more widespread usage of Russian components in automobiles. The companies which meet the standards will be able to carry on claiming state support, to sell vehicles on government orders or benefit from other market support measures. The Ministry of Industry and Commerce is ready to extend the current controls on the implementation of agreements as a whole by individual manufacturers to the production of certain models.
The Ministry of Industry and Commerce has developed a list of operations and a timetable for their implementation for each type of vehicle and specific structure. The Ministry is of the opinion that the manufacturers will have to assemble engines in Russia in order to have access to government support programmes by 2019. Automatic transmissions will have to be assembled in Russia by 2023 and the manual gearboxes will have to be assembled using components manufactured in Russia. The electric engines will also have to be assembled in Russia by 2026, in case the manufacturers would like to include their electric car models to the government support programme.
