Carmakers Will Receive Subsidies In Accordance With The Localization Of Production

2023 Author: Natalie MacDonald | [email protected]. Last modified: 2023-11-26 13:59

Automobile concerns that have signed a special investment contract (SPIC) will receive industrial subsidies depending on the level of localization of production. Experts believe that this may lead to an additional increase in car prices, Kommersant reports.

The transition to a differentiated system will take place step by step. In 2020, all concerns that have signed a SPIC will be guaranteed to receive only 50% of industrial subsidies. In 2021, this figure will drop to 25%, and already in 2022 - to zero. Accordingly, the higher the level of localization of production, the more compensation is due to the auto concern. However, manufacturers signed SPICs with the aim of obtaining 100% of industrial subsidies, which would mainly reimburse the waste collection.

The topic of differentiation of industrial subsidies was lobbied by representatives of traditionally Russian concerns: AvtoVAZ (together with the Renault-Nissan alliance), the GAZ group and KamAZ. But after the discussion of the issue by the working group (representatives of the government and carmakers), it was decided to preserve the previous conditions - full compensation for waste collection for all concerns with SPIK.

Nevertheless, the system will most likely be introduced. The government's decision was explained by the fact that "sectoral self-regulation did not work." Auto business representatives believe that the decision of the working group simply did not suit a number of Russian concerns.

The minimum conditions that were required for the conclusion of the SPIK (localization of welding and painting processes) give 900 points. To obtain the maximum amount of subsidy, the manufacturer needs to score at least 4 thousand points. Access to public procurement, which will begin in 2025, opens from 5.5 thousand points.

If the system for differentiating waste collection compensation starts working in the near future, then due to the increase in waste collection rates, prices for Russian-made foreign cars will also rise from 2020. Now a tangible increase in prices is expected mainly for imported cars.