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Automotive Component Manufacturers Will Receive New Benefits

Automotive Component Manufacturers Will Receive New Benefits
Automotive Component Manufacturers Will Receive New Benefits

Video: Automotive Component Manufacturers Will Receive New Benefits

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The government plans to provide tax breaks for Russian auto component manufacturers. This step is aimed at increasing the demand for the products of Russian factories. This is stated in the plan for the implementation of the strategy for the development of the automotive industry until 2025.

Responsible departments must develop and submit to the government a number of proposals aimed at supporting manufacturers of auto components.

  • The draft change in the scoring system for assessing the localization of production should be submitted by the end of 2019.
  • A government subsidy diffusion project aimed at increasing competitiveness in the industry will appear in the first quarter of 2020.
  • At the same time, a project to provide tax incentives for investors in research centers for the development and development of auto components should be considered. In the third quarter of 2020, the issue of subsidizing such centers when creating innovative projects will be worked out.
  • At the same time, it is planned to consider the possibility of reducing VAT on the sale of auto components.
  • In the second quarter, a list of technologies for the production of auto components that will be considered advanced will be determined - additional state support may be provided for them.

  • At the end of the year, the government will discuss the issue of concluding special investment contracts (SPIC) with companies with localized production.
  • In addition, the government plans to receive a proposal to develop infrastructure for electric vehicles and equip cities with charging stations.

If measures to support auto component manufacturers are implemented, it is possible that they will help in regulating and keeping the growth of prices for new cars. For 11 months of 2019, 1 million 580.3 thousand new passenger cars and light commercial vehicles were sold in Russia - 2.8% less than a year ago. At the same time, no significant measures are foreseen to improve the situation in the car market in 2020.

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