MOSCOW: Global automakers operating in Russia may significantly increase exports of their locally made cars and engines in coming years, thanks to special customs benefits and subsidies offered to them by the Russian government.
Increasing exports of cars, auto parts and engines produced in Russia has become a priority for the government. Devaluation of the ruble has significantly reduced costs for global automakers who are placing greater emphasis on exporting their Russian-made cars amid a steep decline in local demand.
The ruble’s devaluation led to the growth of car exports from Russia in 2017. According to Russian Ministry of Industry and Trade data, last year’s exports of 84,400 units were up 24.1% compared with 2016 and were valued at $1.32 billion.
The government wants to double the number of cars exported from Russia by 2019, in part by providing additional benefits and subsidies to global automakers operating in the country. Such benefits include the lifting of value-added taxes and duties on imports of auto parts used in the production of vehicles ultimately destined for export.
