The Russian government has said it will consider the future of the country’s automobile industry in December.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
First Deputy Prime Minister Igor Shuvalov told reporters that specifically, the government will study the industry’s poor financial state. At present, the total debt of domestic auto producers amounts to RUR100bn (US$3.3bn) he said. The government may also consider modernization and development plans for the industry during the next 10 years, he added.
Shuvalov said that total auto production in Russia this year was expected to amount to 1.39m to 1.4m units. In 2008, Russia’s vehicle output amounted to 1.788m units according to ASM Holding, which monitors the country’s automotive industry.
Shuvalov added that foreign carmakers remain interested in the Russian market and have pledged to fulfill their production plans.
He added that domestic manufacturer GAZ Group may now start formalizing government guarantees, as it has settled its dispute with Alfa Bank. The government earlier decided to provide up to RUR20bn (US$660m) of guarantees to GAZ Group. The government is also providing guarantees to car maker AvtoVAZ, although has not revealed full figures.
Shuvalov said that the Renault-Nissan alliance had confirmed its intention to increase its investment in AvtoVAZ and provide it with its technologies. Renault-Nissan holds 25% plus one share in the Russian carmaker.
