26 Dec 2022 13:50

Auto parts JVs in Russia will be created with Russian controlling stake - Manturov

MOSCOW. Dec 26 (Interfax) - Joint ventures with foreigners for production of auto parts in Russia will be created with the controlling interest and intellectual property rights held by the Russian side, Deputy Prime Minister and Industry and Trade Minister Denis Manturov said during a meeting of Prime Minister Mikhail Mishustin with deputy prime ministers.

"The requirements for the participation of foreign partners in the production of components will be adjusted. We are referring to the creation of joint ventures with a controlling stake and intellectual property rights on the Russian side," he said during a report on the development strategy for the automobile industry.

Manturov suggested that bulk of state funding should be directed to the development of automotive components and materials through the current component program of the Fund for Enterprise Restructuring (FER), which was increased by 50 billion rubles in 2022.

To develop the component industry, the Ministry of Industry and Trade also plans to use the system-wide mechanism of the cluster investment platform, which will be launched in 2023.

Manturov noted that one of the main objectives of the strategy of automotive industry development in the short term and medium term is to increase the number of cars produced on one platform. Unification will allow scaling up of one's own component base, he said. In the target scenario of the strategy with increased state support, the Industry and Trade Ministry expects to triple the production of auto parts and double the total production of all types of vehicles by 2025.

"Through this we will increase our share of the domestic market from 40% to 80% by 2030," Manturov said.