Industry and Trade Ministry preparing to introduce point-based system for assessing localization of automotive electronics in Russia - draft resolution

MOSCOW. Aug 18 (Interfax) - The Industry and Trade Ministry plans to introduce a point-based system for assessing the level of localization of key elements of automotive electronics in Russia, including navigation equipment, GLONASS/GPS modules, electronic sensors and alcohol interlocks as well as the software required for them, according to a draft government resolution prepared by the ministry and published on the website regulation.gov.ru.

The ministry's amendments are expected to supplement government resolution no. 719, which sets out points for localizing production and technological operations in Russia for a number of industries, including the automotive industry for which this resolution was mainly developed.

In particular, it is envisaged that all electronic control units and instruments previously listed in the resolution as "automotive products" will be transferred to the section "radio-electronic products," which at the same time will be supplemented with new items (electronic sensors, alcohol interlocks, heavy GLONASS navigation equipment). According to the materials accompanying the draft, this will allow automotive electronics manufacturers to confirm localization under the rules for radio electronics and therefore to qualify for state support measures for the radio-electronic industry (resolutions no. 878, no. 109 and no. 1252).

The Industry and Trade Ministry said in the explanatory note that one of the reasons for the changes was the sharp rise in exchange rates in 2021-2023 and problems with the supply of components, due to which the share of foreign components in the price of Russian products exceeded 50% and ceased to be predictable. At the same time, the ministry emphasized the need for deep localization to ensure technological sovereignty.