The push by Chinese carmakers into the Russian market is stirring concerns about the future of Russian auto parts supply, says Maxim Sokolov, president of AvtoVAZ. He argues that government backing should not be extended to poorly localized vehicle projects, especially when those ventures could undermine domestic component production and value creation.
According to Sokolov, many manufacturers press for government support for assembly models that rank low on localization while aligning with businesses that already emphasize high levels of internal production. He cautions against policies that pick winners through subsidies, urging a more selective approach that safeguards Russia’s own manufacturing ecosystem and its skilled workforce.
From his perspective, providing state assistance to weakly localized projects risks channeling budget funds abroad, where the principal value of these vehicles is assembled. He emphasizes that government resources should ideally go toward strengthening domestic supply chains, not propping up configurations that add limited value within Russia.
The AvtoVAZ chief notes that the inflow of cheaper, fully assembled options from abroad can erode the market share of local producers and erode the cake of economic activity that Russian factories generate through design, engineering, and parts manufacturing. The result could be a broader impact on regional employment and the technological base that supports automotive innovation in the country.
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Source: TAS