Russian govt updates development strategy for automotive industry, decides on conditions to qualify for state support

MOSCOW. July 10 (Interfax) - The draft development strategy for the Russian automotive industry is to be updated to facilitate the enhancement of support measures for domestic manufacturers, the Russian government's press service reported.

This was the instruction issued by Prime Minister Mikhail Mishustin after the strategic planning session on the development of the industry, which took place in the middle of June.

"State support measures available to Russian automotive companies will need to be formed for the main automotive transport segments. The conditions for companies to access them also need to be determined. This includes a high proportion of products which are de facto manufactured in Russia, automobiles' consumer properties and export potential," the statement reads.

Indicators measuring the effectiveness of each support measure will be listed in the state program entitled "Developing and Increasing the Competitiveness of Industry". The authorized ministries must give their own proposals on this by the end of November.

"Changes made to the draft strategy should include measures to increase labor efficiency in the industry and decrease the cost of production. Another instruction is to forecast the structure of the automotive vehicle stock to take into account the developing market for transport running on alternative fuel types, as well as self-driving and connected vehicles. The work should also take into consideration prospective plans for the development of public transport infrastructure, the growing need for environmental protection and the changing consumer preferences of citizens, as well as the segmentation of transport means into different fuel types, depending on their purpose, and the varying distances of their destinations," the Cabinet of Ministers said.

While updating the draft strategy, the ministries will also need to create a process map for cooperation between manufacturers of vehicles, automobile components and materials and software developers, in the same way as it is done in national technological leadership projects.

Mishustin also instructed ministries to take into account the necessity of creating a legislative foundation for the work of the institute of chief engineers - specifically, their participation in shaping technological policy.