Russia announces new rules for foreign vehicle assembly

Article by Christian A., on December 4, 2010

Russian Development Minister Elvira Nabiullina has finally come to an agreement with her counterpart from the Industry and Trade Ministry over new rules for foreign vehicle assembly in Russia.

The revised rules indicate that foreign automakers that produce more than 300,000 vehicles each year in the country will be exempted from paying import taxes on auto components for eight years.

Under the present Russian laws, foreign automakers can take advantage of discounted rates of no more than 5%, compared to the standard rate of 5% to 15% that domestic manufacturers have to pay.

Nabiullina also revealed that there is a catch in the new regulations, as the 30% of cars made in the country under foreign badges have to be equipped with engines built in Russia.

Alexei Rakhmanov, head of the Industry and Trade Ministry’s Auto Industry Department, said that the government may annul several auto assembly agreements with auto producers that are not being put into action.

As an example, Rakhmanov cited one manufacturer, Ukrainian automaker Bogdan, which assembles buses in the Nizhny Novgorod Region.

It was also reported that the Russian government intends to keep import taxes on automobiles unchanged until 2014–2015. Foreign companies consider the importing of parts and assembly of automobiles in Russia to be profitable because the labor is cheaper and the customs duties on car part imports are low. [via autonews - sub. required]

Topics: russia, sales

If you liked the article, share on:

Comments

Recommended

The first time Porsche revealed the Panamera Sport Turismo to the public was during the 2017 Geneva Motor Show earlier this year. And now it has already entered production, and...
by - July 27, 2017
Autocar has got some juicy rumours for us regarding a new McLaren hypercar. The British publication has inside sources claiming that a new model will be added to the Ultimate...
by - July 27, 2017
Ferrari has recently launched the New Power15 extended warranty program. The company developed this program in response to the notion that supercars are very expensive to maintain. Truth be told,...
by - July 27, 2017
The UK it seems is about to take the same road as its neighbouring country France by banning sales of petrol and diesel vehicles beginning 2040. As reported by The...
by - July 27, 2017
What has BMW been up to lately? The company recently announced that they are currently focusing on electrification, and so far, their new architecture will enable “electrification of every model...
by - July 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries