Russia Will Gradually Increase Tariffs On Auto Imports

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By Himfr Ivy

Russian Prime Minister Vladimir Putin has said Russia will gradually increase import tariffs on foreign cars to stimulate foreign car makers build factories in Russia and to support Russian manufacturers.

Protect the local automotive industry to enhance import duties on Russian contrarian

Performance of the Russian domestic auto manufacturers and foreign manufacturers far apart. To support the local car manufacturers, the beginning of 2009 Russia has raised the import duty on new cars. Last year’s financial and economic crisis, many local car dealer close to collapse. Last year, the Russian auto giant AvtoVAZ is the only rescue from bankruptcy with the misfortune of the government, but later led the market recovery has been gradual.

“We will gradually increase (car) tariff, first used car, then the tariff will increase the finished car.” He stressed: “We are not yet a WTO member, which gives us the right to do so.” Putin said, to improve tariffs can stimulate the production of foreign car companies setting up factories in Russia, and pointed out that foreign companies should also be transferred production experience and Jishu, helping Russia Auto Chanyetigao Shengchan Li, Jia Jiang Russia Zhuanyerenyuan of Jishupeixun. “We will make every effort to ensure the success of your business in Russia.”

Rose Industry and Trade officials were shocked to Putin’s statement. Russian government approved the “Russian Automotive Industry Development Strategy 2020” that, before 2016, car import tariffs will remain at current levels, after will be reduced.

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Foreign auto parts plant in Russia during a record breaking sales

In recent years, foreign car companies are actively building factories in Russia. At present, assembled in Russia brands include Renault, Nissan, Toyota, General Motors, Ford, Volkswagen, Peugeot, Citroen and so on. The first half of this year, these companies produced a total of 15.7561 million in the Russian car. During this period, Russia has imported a total of 251,300 vehicles. To the end of the year, Hyundai, Kia and Mitsubishi factory in Russia will put into production.

Most foreign auto makers sold in Russia during the year is expected to return to pre-crisis levels, as well as part of the foreign car sales in Russia have been broken record. From domestic and foreign car manufacturers and dealers in the Aug. 25 opening of the Moscow International Auto Show announced this year’s overall sales. Skoda Auto, president of Russia, Peter Yanie Ba and vice president, Renault Russia Kristi Ann — Aisijiefu have said that this year sales in Russia will be higher than 2008 levels. Director, Audi Russia, Peter Schwarzenberg Bawuaier predicted that the year Audi sales in Russia is expected to reach 19 000 -2 10 000, 2008, compared to 1.7076 million. However, the global car market until at least 2015 in order to restore to pre-crisis level.

Some foreign car companies have a record high. Peter, president of BMW Group Russia Kroshner Biel said in July this year before, the BMW Group in Russia made an unprecedented success, selling up to 1.1301 million, so the company plans to expand its dealer network during the year to 60 companies. Mercedes Russian president Jurgen Shaoai Er said that in July this year, Mercedes sold a record breaking month, to 1848, but did not make a further prediction, saying only that the company will add several years, 4S shop.

Expansion of production into foreign manufacturers in Russia should magic

Putin proposed to gradually increase the foreign car import tariffs statement, foreign car makers mixed. Nissan spokesman said the company plans to expand its St. Petersburg plant capacity, next year will produce a third model Murano. “In the first half of this year, the company sold 2.7102 million in the Russian car assembly was only 9187. Plans to build 30,000 in 2010, the factory’s production capacity of 50,000.” He said the company hopes to gradually plant at full capacity operation. General Motors, announced that the company will expand production in Russia. Mazda spokesman said, although the company has not planned for production in Russia, but such plans may change at any time.

Young’s automotive industry consultant Ivan Bang Qiefu that raising import tariffs to support Russia’s domestic car manufacturers are very effective measures. 2009, Russia introduced more than three years of age on the import of used cars, after the imposition of restrictive tariffs (at least 35%), their import is almost complete halt.

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