Russian carmakers are calling for the abolition of import duty on steel because they are unhappy with the quality of local supplies.
The Association of Russian Automakers has asked the Industry and Trade Ministry to consider abolishing the import duty on several types of flat-rolled products used in auto production, according to the Kommersant business daily
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The carmakers are said to be unhappy with galvanised deep drawing rolled stock used for the front of a car’s body. The ministry will consider abolishing the duty at a meeting on 1 February.
Import duty on rolled stock amounts to 5%. A total of 1.7m vehicles were produced in Russia last year, using, on average, 250–300 kg of the galvanised rolled stock necessary for each car – a total of 425,000–510,000 tonnes.
If import duties are abolished it could save US$1.8m, Kommersant said. GAZ Group said abolition of import duties would allow Russian carmakers to reduce the overall cost of car production.
However, the government is unlikely to abolish import duties. Analysts said that Russian metals companies spent around US$2.5bn on renewing capacities for the production of auto body sheet metal over the past several years.
