Categories: Auto News

The Ministry of Industry and Trade is ready to make concessions to Chinese brands: AvtoVAZ against

Vedomosti found out that the ministry is discussing with automakers the terms of changing the investment regime. The 30-30-30 formula is on the agenda: with its help, the Russian authorities intend to stimulate investment from Chinese automakers that are “not collecting” points to fully compensate for the recycling fee. AvtoVAZ and KamAZ have already spoken out against the reform.

The essence of the 30-30-30 formula is as follows: foreign manufacturers will be able to receive partial compensation from the state for investments in car production, localization of components and operating costs for promotion. Thus, the investor will be able to return the funds in proportion to the number of points scored for localization.

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The Ministry of Industry and Trade expects that the mechanism will motivate Chinese automakers to gradually invest in localizing production in Russia. Now most foreign factories pay recycling tax at almost the maximum rate. AvtoVAZ and KamAZ are actively opposed to preferences for the “Chinese”: Russian factories believe that competitors will gain an advantage in the budget segments of the market.

At the moment, negotiations on the 30-30-30 formula are paused, and the final decision on the issue of the updated investment regime will be made before the end of December. An alternative would be to delay tightening the current localization scoring system.

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