| Execution of plans and industrial policy Most of the vehicles sold on the Russian market should be produced in Russia - this is the main idea of the Concept for the Development of the Automotive Industry until 2010, approved by the government in July 2002. At the same time, it is not so important who will make the cars (foreign automakers on their own or with the participation of Russian factories), the main thing is that this happens on our territory. The second most important installation is that most of the components that must meet quality standards and logistics must also be produced in Russia. However, most of the measures envisaged to stimulate the development of automobile production have not been implemented. So far, only customs regulation of car imports is noticeable.
Both manufacturers and experts agree that a program on paper is clearly not enough to revive the Russian automobile industry. It is necessary not only to implement the provisions of the concept approved by the government, which never happened, but also to achieve changes at the macroeconomic level.
According to Alexander Kovrigin, deputy general director of ASM-Holding, who also took an active part in the development of the automobile concept, in order to develop the industry, the government must determine industrial policy at the macroeconomic level. If such a document is adopted, Mr. Kovrigin believes, the investor will receive guarantees that his business will be predictable for a certain time. “Electricity accounts for a large share of the cost of a car. With the current energy reform, it is impossible to say what tariffs will be in a year, and investors need to know that electricity, which today costs 1 ruble per kWh, will not cost 5 rubles tomorrow, says Mr. Kovrigin. -- The industrial strategy should identify priority areas for reform. It is clear that the budget is not enough for everyone. For example, this year money is allocated for mechanical engineering, the aviation industry, the automobile industry, etc. Moreover, we are not necessarily talking about direct subsidies. There are many instruments: customs policy, taxation, credit rates.”
President of the Union of Automobile Manufacturers of Russia Evgeny Levichev recalls that at one of the recent meetings of the Russian Union of Industrialists and Entrepreneurs the question was raised about the need to adopt a law on economic and technical policy in the country. At the same time, he emphasizes, it is necessary to give preference and, therefore, direct investments to the development of processing industries, which include mechanical engineering. “We have all the conditions for the development of the automotive industry - metal, electricity, working potential,” continues Mr. Levichev. - However, there are external forces interested in Russia remaining a semi-raw materials power. The most offensive thing is that within the country there are those who continue to think that Russia can only live off oil and gas. Meanwhile, by attracting investments, it is possible to sharply increase production volumes and thereby improve the state of the industry. But here too, unfortunately, we are going our own way. In Russia, investments per capita are tens and hundreds of times less than in the countries of Eastern Europe or China, whose auto industry has already reached a volume of 3 million cars. In those industries where investments are returned over a long period of time, state support and the creation of attractive conditions for investors are necessary.”
However, automakers failed to achieve preferences for component manufacturers, although it is this area, in their opinion, that requires closer attention from government officials. The situation here is deplorable: about a dozen types of components are not produced in Russia at all, and out of 2,000 enterprises specializing in this area, only 15 produce products that meet international quality requirements.
Current regulations (presidential decree “On additional measures to attract investment in the automotive industry” and the accompanying government decree) provide the investor with the right to use the free warehouse regime, i.e. duty-free import from abroad of everything necessary (raw materials, equipment, components) for the production of cars in Russia. This measure is primarily effective for organizing the production of foreign cars in the country: the final cost of the car is reduced by customs duties that are not collected. According to Ford experts, the customs warehouse regime can reduce the price by 12%. In order for this measure to benefit component manufacturers, it was proposed to reduce the investment threshold (the amount of investment that gives the right to benefits), which currently amounts to $1.5 billion, to 100-150 million rubles. After all, the production of components requires investments that are tens of times less than investments in car production. If, for example, to organize a production similar to Ford in Russia, about 100-150 million dollars are required, then to organize the production of auto components from scratch, 3-7 million dollars is enough. “The concept of development of the automobile industry provides for a lowering of the threshold for receiving benefits for manufacturers of auto components and simplification of bureaucratic procedures,” says Mr. Levichev. “However, to our surprise, these proposals met resistance in some departments.” According to some reports, the Ministry of Economic Development, the State Customs Committee and the Ministry of Finance are against it. It was not possible to obtain an explanation from the officials.
Among the measures necessary for the development of the industry, experts also name a further increase in duties on imported cars to 35% for at least seven years. It is also necessary to determine changes in customs barriers for automotive components. “Parts that we are able to make ourselves should be subject to the same tax as a finished car,” says Alexander Kovrigin. “It is proposed that the import of those components that are not produced in Russia at all, and if they are produced, are of very questionable quality, should not be subject to customs duties at all.” Yana VIKTOROVA |
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