Posted on 06 Jan 2022
Russia has decided to abolish “privileges” on the import of electric vehicles (EVs) and from 1 January the government returned the import duty of 15%, Kallanish reports.
Other member countries of the Eurasian Economic Union (EAEU) such as Armenia, Belarus, Kazakhstan and Kyrgyzstan, are likely to introduce a similar duty.
Earlier, Belarus proposed to extend it until the end of 2023, but Russia rejected the proposal, because it fears the incentive will hinder the development of its own production of electric cars.
Last year, Russian authorities approved a new concept for the development of electric road transport in Russia through to 2030. It is expected that by 2024, Russia -- which does not have mass production of EVs but only prototypes of vehicles or test versions -- will make at least 25,000 electric cars. By 2030, production must amount to 10% of the total volume of vehicles.
Russian domestic sales of EVs continued to increase massively in January-October, according to data from the Association of European Businesses (AEB). Sales of new electric vehicles increased to 845 units, up 118% on-year and 16% over the entire sales of 2020. In October alone, 135 EVs were sold.
However, AEB warns that the positive dynamics of EV sales could be undermined by the government’s refusal to extend the zero import customs duty.
“This will lead to an increase in the cost of electric cars, a decrease in consumer demand and subsequent stagnation in the dynamics of sales,” it said. “In addition, some manufacturers may postpone the introduction of their EVs to the Russian market amid higher costs for lower-than-expected sales of electric cars.”
Large foreign manufacturers of electric cars were preparing to sell mass-produced EVs to Russia in 2022.
Earlier, the Russian authorities confirmed again plans to produce three EV brands in the country: Zetta, Kama and the Motorinvest project. Production should be launched in the next 2-3 years.
Source:Kallanish
