The State Duma Transport Committee has moved a bill that would empower Russian federal subjects to set their own minimum localization levels for taxis operating within their jurisdictions, a development reported by RIA News. The move signals a shift toward regional control over the vehicle components and assemblies that qualify as locally produced for use in taxi fleets, with potential implications for how taxi services are procured and deployed across the country.
In January 2023, Andrei Kutepov, who chairs the Economic Policy Committee of the Federation Council, discussed the idea of embedding localization standards for taxi vehicles into national law. His view was that formalizing localization criteria in legislation could spur greater demand for domestically produced cars in the taxi sector, steering procurement toward local manufacturers and inviting broader investment in national automotive production. This perspective aligns localization policy with efforts to strengthen domestic industry and reduce reliance on imports in critical transport services.
However, the proposal faced pushback from the Russian Union of Industrialists and Entrepreneurs (RUIE). The government’s authority to determine localization levels for taxi fleets was questioned on the grounds that mandatory localization could complicate the purchase process for new vehicles, given the existing constraints in car supply. Critics warned that such requirements might raise vehicle costs and disrupt the balance of supply and demand in taxi services. There was also concern that these constraints could push carriers toward informal markets or cause them to exit the taxi industry altogether, thereby destabilizing service availability and pricing for passengers. This tension highlights the broader risk that localization mandates, while intended to boost domestic production, could inadvertently narrow the market for new taxis and slow the renewal of fleets at a time when modern, safer, and more efficient vehicles are most needed.
Industry voices also addressed workforce dynamics in the context of taxi demand. Irina Zaripova, former head of the Public Council for Taxi Development, suggested that addressing the driver shortage could include expanding recruitment to immigrant workers, who may bring essential skills to the sector. This point underscores the interconnected nature of localization policies, labor supply, and service continuity in urban mobility. As cities and regions Wrestle with changing transportation needs, policymakers must weigh the benefits of bolstering domestic manufacturing against the practical realities of workforce availability, fleet modernization, and reliable taxi access for residents and visitors alike. The ongoing discussion reflects a broader global dialogue about how best to balance national industry support with flexible, competitive transport markets that meet public demand while maintaining safety and affordability for all users. (Source: RIA News)”