SERGEY KOGOGIN ON THE IMPORTANCE OF STATE SUPPORT MEASURES FOR THE DEVELOPMENT OF THE COUNTRY'S ECONOMY

22 June 2020

Sergey Kogogin, Director General of KAMAZ, believes that it is important to strengthen measures of state support for the automotive industry in the context of a pandemic and crisis.

Today, the Russian industry faces the task of entering foreign markets, but it is impossible to do this without conquering the domestic market and developing sales in Russia. «Sales growth is hindered by the demand crisis, which is associated with both the pandemic and the global economic crisis. In these conditions, state support is particularly important and necessary. And the measures announced by Deputy Prime Minister of the Russian Federation Yuri Borisov regarding the priority of domestic products over foreign analogues in purchases within the country are particularly relevant today», - said Sergey Kogogin.

Sergey Kogogin also stressed that measures to stimulate domestic demand are also important for continuing to implement their investment plans. For example, KAMAZ is still implementing the largest investment project in the commercial segment, «Development of the KAMAZ car range and modernization of capacities for their production». In 2012-2020, the volume of investments amounted to about 52 billion rubles. The K5 generation cab frames factory was launched (capacity 55 thousand units) with localization up to 90%, production of R6 engines with localization more than 80% (12 thousand units/year). In the current 2020 year, KAMAZ plans to spend 10 billion rubles, including on creating a modern car Assembly line, creating a gas engine R6, starting work on the development of the Euro-6 engine, completing it projects, and implementing an electronic technical process at factories. Over the next five years (2021-2025), it is planned to spend about 50 billion rubles more on expanding the cab Assembly line, developing engine production to 30 thousand units, expanding the digitalization of production, and developing driverless cars and electrical equipment.

«We cannot suspend or terminate investments. We are continuing our progress towards our goals, and it is important to achieve results in order to justify the investment. Stopping today is like taking a few steps in the opposite direction. In these conditions, measures of state support and stimulating demand are particularly important, since the flywheel of investment in production has already been launched», - said the Director General of KAMAZ.

As noted by Sergey Kogogin, the support of the domestic automaker is not only support for the automotive industry, but also assistance to municipal associations for the renewal of fleets and the development of passenger transport. New programs for the purchase of domestic vehicles will help municipalities update and replenish their fleets with new equipment - more modern, safe and environmentally friendly. For example, KAMAZ today has a wide range of municipal vehicles that cities need and helps them successfully perform the tasks facing municipalities. In addition, state support measures will help to save jobs, which is especially important and relevant in this difficult period.

Top