Russia continues to fine-tune support for automobile industry in favor of domestic manufacturers, to encourage demand - Putin

MOSCOW. July 17 (Interfax) - State support for the Russian automobile industry should provide advantages to domestic manufacturers in the first turn, while the government will continue to encourage demand for vehicles, Russian President Vladimir Putin said at a meeting with the Magnitogorsk Iron and Steel Works personnel on Wednesday.

He was asked whether state support for the automobile industry should be adjusted for full account of the interests of both manufacturers and potential individual buyers of vehicles, who are dealing with the growing prices, including due to the higher recycling fee.

"Whenever inflation starts putting pressure and creating problems, whenever other problems occur and require additional measures, it is always suggested that the automobile industry be supported, including support for those who buy vehicles, either industrial enterprises, public transport purchased by cities and municipalities or people, individuals. Such programs have existed at all times, and the government is considering the implementation of such programs now, as well," Putin said.

"Of course, we will be adjusting the system to help people buy and manufacturers increase the production of vehicles, domestic ones in the first turn," Putin said in response to the question.

The Russian government press service said a week ago that Prime Minister Mikhail Mishustin had ordered that the draft strategy for the development of the Russian automobile industry be updated with due account for the need for improving support for domestic manufacturers. "Measures of state support for Russian automobile industry enterprises are due to be elaborated for main segments of vehicles. At the same time, it is necessary to elaborate terms of accessibility, including the high actual level of product localization, consumer properties of a vehicle, and export prospects," the press service said.