Committee on Cooperation Development and Production Localization in the auto industry of Russian Engineering Union summed up results of the auto component industry work in the HY1 2023, as well as discussed industry’s state support measures and their implementation results.
Director of Auto industry and Railway Engineering Department of the MIT of Russia Tigran Parsadanyan welcomed meeting participants. Co-Chairman of the Committee, member of the BoD of AVTOVAZ JSC E.K.Vaino named main achievements of the component industry in the HY1 and challenges facing it.
Members of the Automotive Industry Association “Automotive Industry Cluster” took part in the meeting as well. This organization unites 168 suppliers and car manufacturing plants from 24 Russian regions. Cluster sees the cooperation with the Ministry of Industry and Trade of Russia in the field of Russian car industry development and, in particular, car and component production localization, as well as manufacturing technologies, testing and certification as one of its tasks.
AVTOVAZ President positively assessed Cluster’s activity during the meeting having noted high credibility to this organization. Cluster has offered more than 80 new suppliers to AVTOVAZ for one and a half years – this played a role in the conditions of increasing sanctions pressure. “We understood that we can rely only on own forces, own personnel, technologies and count on the support of our Government, branch Ministry and regional leaders”, Maksim Sokolov told having separately mentioned the support of the Samara Region Governor Dmitry Azarov. AVTOVAZ President also confirmed plans to produce 400K cars in 2023 and implement promising projects in the upcoming years, including the LADA Iskra family SOP.
AvtoVAZ Head underlined the importance of state policy’s focus on domestic market protection and Russian enterprises stimulation for further localization. AvtoVAZ has currently more than 1650 suppliers with over 500 thousand people working there. “We, as manufacturer, are responsible for ones who are engaged in the auto industry. We will be able to ensure the implementation of our country’s strategic tasks and technological sovereignty achievement only if ones, who produce components and cars and ones, who form state industry policy and implement deliberate support measures of really Russian-made highly localized products consolidate efforts”, M.Sokolov commented. The discussion participants named scrappage fee indexation, public procurement law improvement and taxi law amendments among the solutions the industry is in need of. This refers to setting strict requirements regarding taxi localization level, as well as cars and electric cars used for state and municipal needs on lease or as part of transport services agreement.