Local OEMs will receive subsidies for the transition to Russian electronics

Local OEMs will receive subsidies for the transition to Russian electronics


Kommersant.- The Ministry of Industry and Commerce has developed a support programme to stimulate the demand for Russian electronics in the automotive industry. The ministry is ready to issue an annual subsidy of 4 billion rubles to each car manufacturer, for the introduction of electronic components into their vehicles. Electronics manufacturers may also be eligible for similar subsidies, in the amount of 1.5 billion rubles. The ministry has so far managed to allocate only 3 billion rubles for the purpose, however, according to calculations, the introduction of Russian components would still be profitable for the manufacturers, taking into account the increased compensation for utilisation fees.

Kommersant has been informed about the model of government support for the development of auto electronics in the Russian Federation, formulated by the Ministry of Industry and Commerce and introduced to the enterprises in the industry. The list of aforementioned components include: electronic blocks of active and passive safety, engine control, gearbox, drive, brake system, ADAS and driver assistance systems, as well as other telematics, including GLONASS modules. As pointed out by the sources of Kommersant in the car industry, the replacement processes of some components are long and complicated, such as an engine control unit, the costs of which increase due to validation, internal testing and calibration mainly. Then it’ll be necessary to re-certify the vehicle, as a result of the replacement of the key element.

According to assumptions, the support for the introduction of Russian electronics to the automotive industry will be applied to mass production of vehicles with the compensation of various relevant costs.

There will be two new subsidies: up to 50% compensation for the purchasing and implementation costs of Russian electronics and up to 90% compensation for R&D costs for the creation of modules and the electronic component base.

The amount of subsidy is limited to 1.5 billion rubles per project. As told by the Ministry of Industry and Commerce, there are plans to allocate 3 billion rubles for the programme in 2021.

The share of domestic electronics manufacturers in the Russian market amounted to 7.2% in 2020, as told by the Executive Director of the Consortium of Enterprises in the field of Automotive Electronic Devices and Telematics: Dmitri Kornachev. In the absence of such measures, the development of Russian electronics will practically be impossible, Kornachev said. The director is of the opinion that in order to increase the supply volume, it’s necessary to receive orders from the largest car manufacturers. Therefore, the Russian output should be significantly cheaper or more profitable in the future to create additional demand, he added.