The Russian government has revealed plans to turn around the local car industry which has seen a large drop in sales.
The plan – unveiled at a cabinet meeting chaired by Russian prime minister Vladimir Putin – involves ploughing around $20bn into the automotive sector to 2020 according to local reports citing industry minister Viktor Khristenko.
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“Our end goal is to have in this country a modern auto industry which includes the whole supply chain up to the end product,” Putin said. “We need to work hard to make the national auto industry more competitive.”.
Natixis Securities said the Russian market fell 49% last year.
Putin praised Russia’s success in securing investment from major global vehicle producers to make cars locally though it should be noted that import tariffs encourage this.
Including investment by foreign auto companies, the government expects to invest up to US$40bn in the auto industry by 2020.
