17.5 billion rubles worth of government support tools will be allocated on the automotive industry in 2021

17.5 billion rubles worth of government support tools will be allocated on the automotive industry in 2021


RusAutoNewsCom.- The Minister of Industry and Commerce Denis Manturov has held a video-conference meeting on the performance of the automotive industry within the first nine months of 2020. 

The director of the Department of Automotive Industry and Railway Engineering Denis Pak has made a keynote speech at the meeting. As told by Pak, the task of keeping the drop rate in production in the automotive industry below 30% in the context of the shrinkage in the global market has been achieved. Production fell by 25.5% within the aforementioned period and demand by 13.6%.

The shrinkage levels in production in some countries during the same period are as follows: Spain – 38.3%, Brazil – 34.7%, Italy – 34.2%, UK – 33.2%, France and India – 28.9%, Germany – 25.5% and USA – 18.8%.

In the meantime, as told by Denis Pak, production has risen by 5.5% year-on-year in September and demand by 4.5%. According to Pak, these results have been achieved thanks to the additional support provided by the government on the automotive industry, in the amount of 25 billion rubles.

New programmes have been launched, such as Affordable Rent, outpacing the purchases made by federal executive authorities and state enterprises, preferential car loan programme has been expanded to cover all state medical institution workers, as well as car trade-in transactions. “According to our calculations, the implementation of support measures in 2020 has led to the production and sales of more than 250,000 vehicles” – as emphasised by the director of the department. 

Talking about next year’s plans, Denis Pak has mentioned the necessity of bringing a points system in exports, which would  integrate the component manufacturers and enterprises in related industries in the supply chains of global car manufacturers. Pak has also outlined the mechanism for the provision of grants by the Industrial Development Fund for the localisation of the production of car components, subject to the supply of the products to two or more car manufacturers.

In addition, as told by the director of the department, two tasks are currently being faced by the EAEU: the complete transition of the Union member states to the issuance of electronic passports for vehicles and the expansion of points scoring requirements for the localisation of automotive products in relation to all member states.

Pak has added that 17.5 billion rubles will be allocated on systematic measures of state support in 2021.