Russia's Trade and Industry and Economy Ministries are yet to agree new requirements for foreign auto makers to assemble cars in Russia, a government official said on Wednesday.
Deputy Trade and Industry Minister Andrei Dementyev said the Economy Ministry still had objections over the minimum assembly volume for foreign car producers in Russia while the Trade and Industry Ministry had proposed that it should be set at the level of 300,000 vehicles a year.
Major Russian auto makers have called on the government to tighten rules for the industrial assembly of foreign cars in Russia by 2013-2014. They also asked the government to raise the minimum production volume for foreign auto makers in Russia to 300,000 cars annually.
Foreign companies currently find it profitable to import car parts and assemble automobiles in Russia because customs duties on car part imports are low. Tightening the requirements could encourage foreign car firms to make major long-term investment in Russia, and carry out more local production, or leave the market.
Of all the foreign investors planning to open production in Russia over the next few years, only Renault, Fiat's partner Sollers, and Russian AvtoVAZ, intend to build large plants.
Most other foreign car producers prefer opening small production lines and assembling cars with parts imported from other countries.
MOSCOW, September 29 (RIA Novosti)
