Russian Government Develops New Strategy for Automotive Industry
OREANDA-NEWS. Prime Minister, Dmitry Medvedev, instructed the Ministry of Industry, Ministry of Economic Development and the Ministry of Finance in conjunction with market participants to prepare a new version of the development strategy of the automotive industry and next year to make a document for the government until December 2nd. The strategy was adopted in 2010 and the last time it was actualized at the end of 2013. A new option is to extend its validity for 10 years - until 2030, wrote the newspaper "Vedomosti".
"Change of strategy was one of the main requests of automakers in addition to supporting of the market. It is good that the authorities heard us", - employee of a Russian car is happy. The strategy was adopted in 2010 in terms of market growth, but in 2013, sales of cars coming down, he says. The current version of the strategy has lost relevance, agrees representative of Ministry of Economic Development. It is not possible to form long-term activities of state support and to determine their resource provision, he says.
The most important thing that it is unclear what will happen after 2020, when the benefits will be finished by agreements on industrial assembly mode. This prevents long-term planning, emphasizes employee of car plant. This is also confirmed by the executive director of the agency "AUTOSTAT", Sergei Udalov, and senior manager of the automotive practice of PwC, Sergey Litvinenko. "We need to understand how the government sees the development of the industry in the long term", - agrees representative of Ford Sollers.
Agreements on industrial assembly were signed by all major automakers; they received benefits for the import of car components (up to a zero rate) in exchange for commitments to increase of localization (60%) and capacity expansion (up to 350 thousand cars per year). Companies fulfill the conditions, but against the weakening of the ruble and a shrinking market, some participants risk not to achieve the desired level of localization. It may be uneconomic, warn Mr.Litvinenko and Mr.Udalov. But if the companies will understand that the state will continue to support the industry after 2020, it is likely that they won't reduce investments. Localization of vehicles will be stimulated by the support of automotive component industry, believe interlocutors of "Vedomosti". It should be included in the strategy the export support, adds an employee of a car plant. Much will depend on the market, but in the current situation to say what it will be in 2030, it is almost impossible, says a representative of Ford Sollers. Evaluation is not carried out yet, says the Ministry of Economic Development
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