Preferential Tax Treatment On Imported Components Has Russia Hoping For Increased Local R&D, Production
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Having proposed a lower tax rate on imported components, the Russian government is hard at work trying to persuade major foreign automakers to boost Russian production.
Among other incentives, the favorable tax treatment on imported components will be in place for as many as eight years, in hopes that global automakers such as GM and Ford increase local manufacturing to as much as 300,000 units per year while establishing and/or revamping Research & Development centers as well as expanding stamping and powertrain assembly operations.
The goal, according to Inside Line, is to increase the localization rate of components to as much as 60 percent and the installation rate of Russian-produced powertrains to at least 30 percent.
“Foreign firms are looking for more support from Moscow to help stabilize the automotive market in Russia,” writes Inside Line Correspondent Evgeniy Vorotnikov.
Currently, The General’s Russian manufacturing efforts include the assembly of the Chevrolet Lacetti by means of a partnership with Avtotor in Kaliningrad as well as the Chevrolet Cruze and Captiva on the the outskirts of St. Petersburg.
Source: Inside Line
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