Russia will increase import duties on foreign cars to boost investment in local manufacturing and vehicle production, prime minister Vladimir Putin said in a television interview.
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He said he wanted technologically advanced overseas producers to work alongside Russian groups like AvtoVAZ.
He told Vesti 24 that tariffs would be raised gradually over the next few years but the government did not want to undermine foreign carmakers’ business in Russia.
Russia has increased import duties on new vehicles to 25% from 20% since early 2009 in support of local manufacturers, many of whom were forced to the brink of collapse by last year’s financial and economic crisis.
Industry leader AvtoVAZ, in which Renault has a 25% stake, had to be bailed out by the state to avoid bankruptcy last year, but has since lead a market recovery.
Daimler and Fiat have also entered the Russian market as partners to KAMAZ and Sollers, respectively, while others, including Nissan, Toyota, Ford and General Motors, have opened or expanded manufacturing plants.
Putin said: “We want you to gradually transfer technology skills, increase productivity and the level of technical training for our specialists. And for our part we will do our best to ensure a successful launch of businesses.”
The Russian government has launched initiatives to boost car and truck sales including a scrappage scheme that rewards drivers of 10 year old Russian cars looking to trade in for newer models.
Car sales in Russia rose 45% in July following falling almost 50% in 2009.
