|
|
Russian Automotive industry is
composed of four types of manufacturers – Domestic players, Foreign OEM’s,
Joint Ventures and Russian players assembling foreign brands. Trade is
important for the automotive industry as imports forms a major part of
domestic sales. Government of Russia has implemented decrees specifically
for automotive industry to attract foreign OEM manufacturers which includes
tax and customs duties reforms and concessions. Russia’s WTO accession is
expected to impact on the present regulatory environment. Russian players
are expected to face a stiff competition from US, European and Japanese auto
makers as the Russian Auto industry would open up for trade and investments.
WTO accession is expected to favor the foreign players as Russia would
retain rights to grant subsidies, incentives will be provided for foreign
investments in the country. Russia is concluding number of trade agreements
including countries like India and China, the country may also be used as an
export base, especially by Chinese manufacturers. Due Russian Government’s
policy support for the OEM manufacturers and opening up of the economy for
the foreign investments in automotive market it is anticipated that Central
and East European countries will also have an effect on Russia’s prospects
as an export base.
