Government has presented a new investment model for the automotive industry

Government has presented a new investment model for the automotive industry


Interfax. – The Ministry of Industry and Commerce has published a draft resolution of the government of Russian Federation, a new investment model, which intends to introduce a points system for the localisation of assemblies and components manufactured in Russia.

According to the draft document published on portal on Wednesday, the aforementioned points will be applied on the localisation of variators, control units for ABS and ESP systems, cooling system heat exchangers, seats, wheels and wiring harnesses.

In addition, a list of corresponding technological operations for the specified assemblies and components to be localised has been highlighted, as well as the schedule of the localisation process.

The public discussion of the project will take place between 26 September and 23 October 2018. The document is expected to be accepted in December 2018.

In the meantime, several car manufacturers have localised their production in Russia through industrial assembly agreements, which are due for expiration soon, as in the case of Hyundai, whose agreement will expire in December. To replace such agreements, the Russian authorities intended to introduce an institute of special investment contracts – SPIC, which should form a basis for the new model for the Russian car industry. As told by the Russian Minister of Industry and Commerce Denis Manturov at the end of 2017, the new investment regime will propose a series of elements, which will enable the manufacturers to collect a choice  of so-called points, in order to have the right to claim subsidies from the state.

“We have nine categories – engine, transmission, control system, driver assistance system, hybrid and battery-powered cells and their control systems, motor-wheels and motor-wheel gearboxes” – said Manturov, adding that this is a serious list and each of these components has a sufficient capacity, in terms of investment.

“Naturally, we will not be supporting the companies, which don’t take on additional obligations to increase the level of localisation, depending on the circumstances at the time of the SPICs. The market is currently saturated with approximately 90% Russian production. Our current task is to deepen the localisation” – Manturov highlighted at the time of his statement.

Manturov has added that the project will be implemented within the scope of the SPICs with sufficiently versatile measures. “Versatility comes into equation with the manufacturer’s right of choice, as to the amount and type of points from the list, in order to receive the entire set of state support” – Manturov said.

Write a Comment

Only registered users can comment.