Russia will partner with 'friendly' nations in passenger auto industry - Industry and Trade Ministry
MOSCOW. Oct 21 (Interfax) - It is not advantageous for the the Russian car industry to give up global partnerships, and these will continue with companies from "friendly" countries, Deputy Industry and Trade Minister Vasily Osmakov said.
Approaches to the development of the Russian passenger car industry were discussed at the meeting of the State Duma Committee on Budget and Taxes, which considered the draft state programs on Friday. This includes the Industry and Trade Ministry's "Development of industry and boosting its competitiveness" program, which administers state support measures for industry.
The Russian automotive industry is trying to restructure its model of development, moving away from a focus "on global platforms, the global division of labor and global components," Osmakov said.
"If in the segments of commercial and freight transport we will increase the level of sovereignty, as we have preserved our platforms, our engineering schools and so on, then in the passenger car industry we actually have to create our own platforms, our own industry of components. We will certainly continue to go for global partnerships with companies from 'friendly' countries. Otherwise it will all be very expensive inside [the country]. But it is clear that we will significantly accelerate and compact the approaches to the requirements for commitments and the speed of their implementation, so to speak," he said.
When asked how justified the distribution of state support in past years was in favor of, among others, foreign players who have now left the Russian market, the deputy minister said that Russian companies were also beneficiaries of state support measures.
"The amount of financing from the state program, which we have historically had, included players such as Kamaz , GAZ, Avtovaz , which have preserved and developed their own competencies and which are now our backbone. As for next year, they will be the only ones receiving state support because all these measures are tied to operations in the country. If you produce, you get them. If you don't produce, you don't get them. Of those who left, no one will receive anything," Osmakov said.
The "Development of industry and boosting its competitiveness" state program includes financing of system-wide measures in the field of industrial policy, sectoral federal projects, and complex process measures. Financing for the program amounts to 1.3 trillion rubles, according to budget plans for 2023-2025, including almost 460 billion rubles next year. Half of this amount for 2023 is to be directed towards the most capital-intensive federal project on the development of the automobile and transport machine-building industries, which includes financing of state support for demand.
In spring of 2022 most global car manufacturers operating in Russia suspended supplies of cars and components to the country and put their local production on hold for an indefinite period or transferred these assets to the state. According to Rosstat, production of cars in Russia in January-August 2022 fell 2.8-fold (by 64.5%) to 325,000 units.