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The Government of the Russian Federation will present a new strategy for the development of the automotive industry by September 1

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The strategy for the development of the automotive industry will be presented by the government before September 1. This became known following the results of the industry meeting, which President Vladimir Putin held as part of the St. Petersburg Economic Forum. What decisions will be made to support the automotive industry?

Russia must achieve technological sovereignty in the automotive industry and produce high-quality and affordable cars for citizens, Vladimir Putin said at a meeting on the development of the automotive industry as part of the St. Petersburg International Economic Forum.

In recent months, car production in the country has been declining markedly. According to Rosstat data for April, a little less than 20,000 passenger cars were produced in the first four months of the year. The overall decline was about 47 percent. This is directly related to the disruption of global supply chains and the withdrawal of foreign partners from the Russian market, the President noted.

“Partners of Russian car factories, despite their long-term obligations, either suspended deliveries or announced they were leaving our market. It is obvious that this demarche will affect production volumes, and noticeably. And it is already being reflected. The output of the domestic auto industry turned out to be three times lower, and in April it was five times lower,” Russian President Vladimir Putin said.

In this regard, the head of state called it a primary task to ensure the operation of car factories in Russia and their supply with the necessary components, to maintain employment. Here, the import substitution programs that have been implemented in our country since 2014 should play an important role. According to the president, we are not talking about a complete transition to our own production. However, key critical things such as engineering, intellectual rights and know-how must be Russian.

The second task is to ensure a sufficient supply of cars on the domestic market in order to contain the growth in prices for them. Against the backdrop of a rise in prices, sales of passenger cars in the country fell sharply. In May, 24,268 units were sold. This is 83.5 percent less than in the same period in 2021. As for the first five months as a whole, here sales decreased immediately by 51 percent and amounted to 318,114 cars.

“Let me remind you that in the past two years, about one and a half million cars were sold in Russia annually. However, this year the volume of sales of cars has decreased significantly. According to the results of five months, by 51 percent. Whereas, according to experts, in order to avoid a sharp increase in the cost of cars , the decline in sales should not have gone beyond 20-25 percent,” said Russian President Vladimir Putin.

A decision has already been made on systemic support for the Russian automotive industry in the next three years. This was stated by the head of the Ministry of Industry and Trade Denis Manturov following the results of the meeting. In particular, more than 20 billion rubles will be allocated this year. Including car loans, preferential leasing and discounts on electric vehicles.

“First of all, this is the resumption of car loans – 10.2 billion rubles, 4.9 billion rubles – for preferential leasing, 2.6 billion rubles – for discounts on electric transport and 3.3 billion – for gas-engine equipment,” the head said. Ministry of Industry and Trade of the Russian Federation Denis Manturov.

Each job in the auto industry in our country today supports nine jobs in other related areas, the president said. Therefore, it is extremely important now to support the domestic auto industry. The head of state demanded that everything necessary be done by the end of the year so that the situation in the industry does not become excessively acute and ensure its global competitiveness. The new strategy for the development of the automotive industry will be presented before September 1.

“It is necessary before September 1, I ask the government to do this, to develop and approve an updated strategy for the automotive industry, taking into account today’s realities. And, of course, Russia’s own critical technologies and industries should become its key element. Moreover, their level should ensure the global competitiveness of our industry in general,” Russian President Vladimir Putin said.

Russia’s independence in the automotive industry must be real and have a solid foundation, the president said at the end of the meeting.

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