The government supported the extension of the SPIC mechanism in the automotive industry

Government of the Russian Federation approved the extension of special investment contracts in the automotive industry until the end of 2033. The corresponding draft law has been submitted to the State Duma, the Prime agency writes. Recall that the initiative to extend the SPIC until the end of 2033 was previously proposed by the Ministry of Industry and Trade of the Russian Federation. The ministry noted that such measures will make it possible to adjust the payback periods of investment projects and increase the stability of the conditions for their implementation. Also, according to the Ministry of Industry and Trade, this will ensure the creation of a 10-year planning horizon, increasing the attractiveness of the Russian automotive industry in terms of investment in its development.

The instrument of special investment contracts has been operating in Russia since 2015; it involves investors investing in the country's economy in exchange for non-deterioration of business conditions and tax benefits. The SPIC has been concluded with all major Russian and foreign auto concerns that have their own production site in the country. As previously reported by "AUTOSTAT", the government of the Russian Federation extended the effect of simplified rules for the production of cars in the Russian Federation until June 1, 2023, follows from the decision of the Cabinet of Ministers. After this period, Ministry of Industry and Trade plans to tighten the requirements for the production of cars. Simplified requirements for cars produced in the country have been in force in Russia since the spring of 2022. The document allows automakers not to install a number of systems on new cars - in particular, ABS and ESP - and the ERA-GLONASS emergency response system in case of accidents may not have automatic operation functions. It is also allowed to produce cars with engines of different environmental classes, including the lowest Euro-0.

According to the deputy head of the analytics department of agency "AUTOSTAT" Viktor Pushkarev, in order to ensure technological sovereignty, it is clearly necessary to localize the production of all the most important auto components in the territory of the Russian Federation. And it means that if it is planned to launch a full-fledged sovereign production of a particular Chinese car model, then it is necessary to create a full-fledged pool of enterprises supplying its auto components. “It is necessary to create a mechanism for collecting customs duties, economic benefits, preferences, tax holidays and other economic instruments for locally assembled cars with localization of more than 70%.

In this case, there will be Chinese and other Asian companies that want to set up production in Russia. Well, it is necessary that the market still be at least 1.5 million units. Otherwise, creating production for a smaller market simply does not make sense,” said Alexei Podshchekoldin, Chairman of the Board of Directors of BN-Motors.