Russia to stimulate its automotive component market

March 26, 2013

A round table forum titled “Global automotive market: major trends, present and future. Prospects for further development of the automotive component market in Russia” was held on the first day of St Petersburg Technical Fair within the St Petersburg Industrial Congress and AUTOPROM Russia 2013 conference, 12th March 2013.

Igor Korovkin, Chief Executive Officer of the Association of Russian Automakers, and moderator of the meeting, stated that the Russian Government has recently adopted a programme for industry development and competitive growth. The first paragraphs of this programme are devoted to stimulating various aspects of the automotive industry. Technical requirements for wheeled vehicle safety, in particular, will be improved alongside implementation of environmental standards.

The strategic tasks for the industry development for the next 5-7 years were also defined. According to Korovkin, the most important task is to create manufacturing facilities that could satisfy over 70% of car market demands and up to 90% of the trucking and bus market.

Another obligatory point of market development strategy is to reduce Russian outflow of capital received from automotive sales. As experts say, these actions should trigger modernisation and successful development of the industry.

According to Tatiana Arabadji, Editor-in-Chief of the Car Business Magazine, government measures intended to create prerequisites to develop the automotive industry and to attract foreign suppliers should largely help Russia enter global supply chains. Her presentation also outlined possibilities for foreign companies operating in Russia.

Problems of cooperation with Russian and foreign investors and peculiarities of national brand development were also discussed during this round-table meeting. Particular focus was given to safety and environmental issues.

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