“For known circumstances and reasons.” Putin – about the problems of the automobile industry in Russia

President Vladimir Putin, at a meeting on the development of the automotive industry, called for Russia’s technological dominance in the main parameters of the automotive industry.

“Of course, this does not mean that all production processes in the automotive industry must take place strictly in our country, but key, critical things such as engineering, intellectual property rights and know-how must of course be Russian,” he said. , – RIA Novosti quotes him.

Putin also demanded to ensure the functioning of enterprises and protect the labor collectives. He also drew attention to the suspension or refusal of cooperation with the Russian Federation of various partners that affect the output. He noted that the generally accepted world practice in automotive production is cooperation and cross-border production chains, and that “a number of contractors and suppliers of automobile factories are and still are abroad.”

“Most of these ties have been severed today due to known circumstances and reasons. Partners of Russian auto factories have suspended deliveries or announced their withdrawal from our market, despite their long-term commitments. It is obvious that this output will affect the production volume, and it is already being noticed and reflected.”

He noted that indicators have worsened this year compared to last year:

In March, automobile production on the Russian market was three times lower, and in April it was five times lower.

The commercial vehicle market has suffered greatly and there may be a serious demand shortage. The main buyers – business and shipping companies – are not yet ready to invest.

Putin said that the basis for the development of the automotive industry is high-quality and affordable cars for Russians, therefore, it is necessary to “form an approach to work” on it. “I’ll repeat what we talked about at previous industry meetings – of course you can’t just focus on the current problems of the auto industry,” Putin said.

“Now it is especially important to create strategic approaches to the development of the industry, to create a long-term vector of technological and production changes based on the needs of citizens for high-quality and affordable cars, the demands of the economy. Business, city and municipal economy in terms of automotive equipment, including road, construction and municipal equipment.”

Transfer authorities to Lada

Speaking at SPIEF on 16 June, Finance Minister Anton Siluanov said, declarationThat the state should bear the risks of the business of selling goods and ensure demand, for example, by “transferring state workers to native Ladas”.

The head of the Ministry of Finance emphasized that now the emphasis should be on “our own forces and friendly partners”, especially in radio electronics, digital developments and other areas. In addition, the government must bear some of the business risks.

“And the state will buy airbags for Lada. The state will ensure the operation of the business so that this business is sustainable and has a future,” Siluanov promised.

Still, according to him, “medicine” in the form of state support to industry should not become a “medicine”. Otherwise, it would threaten to accelerate inflation and make the lives of Russians worse.

Following Siluanov’s call, AvtoVAZ promised to supply the authorities with special cars to replace foreign cars that were not delivered to the country due to sanctions. “We are ready if such a decision comes out” [власти] will accept” said Official representative of “AvtoVAZ” Sergey Ilyinsky “socialbites.ca”.

Last week, AvtoVAZ resumed production of the Lada Grant, but without ABS (anti-lock braking system) and airbags. This is the first car model produced in the business after a downtime due to a lack of components. It has been specially developed to ensure the maximum possible localization of production. Today announced car prices – 658.3 thousand rubles.

Decline in industrial production

In early June, at a meeting on economic issues, the president noted a decline in industrial production, including in the automotive industry, in April.

Many foreign automakers, including Toyota, BMW, Nissan, Stellantis, Lexus, Volvo, Daimler Truck and others, announced the suspension of production and supply of cars to Russia, amid Western sanctions and disruption of supply chains. Several companies left Russia, production of domestic companies was also suspended.

According to the Association of European Enterprises, sales of new passenger cars and light commercial vehicles (light commercial vehicles) in Russia in May 2022 decreased by 83.5% compared to the same period of the previous year: 24,268 thousand units were sold.