The Ministry of Industry and Trade has developed a strategy for the development of the automotive industry until 2035

As part of the July instruction of President Vladimir Putin, the Ministry of Industry and Trade prepared strategy for the development of the Russian automotive industry until 2035. One of its main goals is to ensure the technological sovereignty of the automotive industry. The action plan for the implementation of the strategy must be submitted to the government by December 15, 2022.

Among other things, the objectives of the strategy are:

• meeting the needs of the Russian market mainly (at least 80%) with highly localized products manufactured in the Russian Federation;
• ensuring the competitiveness of Russian products on the world market.

Necessary investment size for the period 2023-2035 in research and development work (R&D), as well as the organization component production estimated at 2.7 trillion rublesaccording to the explanatory note.

The strategy assumes three scenarios for the dynamics of the automotive market until 2035: baseline, optimistic and pessimistic:

• in base scenario the market is estimated at 0.8 million vehicles in 2022, and then gradually recovers by 2026 to the level of 1.6–1.7 million vehicles;
• in pessimistic scenario the market is expected to be at the level of 1.3 million cars;
• in optimistic scenario the market until 2025 corresponds to the baseline scenario, then a gradual increase to 2.8–3 million vehicles by 2030–2032 is expected.

In tasks for ensuring technological sovereigntyaccording to the strategy, are includedin particular the production of small diesel engines, automatic transmission (automatic transmission), ABS (anti-lock braking system), ESP (electronic stabilization system), as well as airbags.

Formerly Russian authorities allowed produce cars without ABS and airbags. The government has eased the requirements so that manufacturers can abandon components that are not available due to sanctions.

By March, disruption of global supply chains due to logistics issues and sanctions led to stop the vast majority of automobile plants in the passenger segment.

Now 80% of the Russian car market is occupied by Chinese cars.

Read more in the publication “b FM” “Cars stalled in duties”.

Maria Fedotova