Sergey Chemezov Presented Proposals for the Development of Russian Automotive Industry at a Meeting of the Federation Council

At the 577th meeting of the Federation Council, CEO of Rostec and Chairman of the Russian Engineering Union Sergey Chemezov spoke about the role of the corporation in facilitating the development, production and export of high-tech industrial products.

In his speech, the head of the State Corporation presented proposals for the development of the Russian automotive industry. As Sergey Chemezov noted, state regulation of the industry should be based on the fundamental principle of linking state support measures with the level of actual localization of the products.

“The more the product is localized, the more such automobiles should be subject to various incentive programs: government procurement, preferential lending, preferential leasing, a block of industrial subsidies, and more,” he shared his thoughts.

Commenting on the speech of the head of Rostec, First Deputy Chairman of the Russian Engineering Union, Chairman of the State Duma Committee on Industry and Trade Vladimir Gutenev recalled that in order to support the motor transport industry, the State Duma adopted in the first reading a bill on taxi localization.

“The legislative initiative proposed that the Government establish a minimum threshold for the localization of automobiles used as taxis at the federal level, and that regions increase it based on their own development programs,” the parliamentarian explained.

According to the head of the relevant Committee, the localization assessment mechanism was adjusted as amendments to the draft Federal Law for the second reading.

“We are talking not about the share of localization, but about the number of points that are scored for certain technological operations. The more complex the operation, the more points the manufacturer will receive if it is carried out on the territory of the Russian Federation. The same is true for components and units: if you produce them in Russia, you get more points,” Vladimir Gutenev explained.

The deputy added that the adoption of the bill will stimulate the creation of advanced technologies for the production of automobiles and components on our territory, which will reduce production costs and prevent the growth of transportation costs.

“The more products we manufacture above the break-even zone, the lower the total costs for each unit of goods will be. The more automobiles and components produced in Russia are purchased, including for taxis, the cheaper they will be for manufacturers and the slower the prices will grow," Vladimir Gutenev assured.

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