Russia to hike output of foreign-made cars
Russia's Industry and Energy Minister states that Russia will be able to produce annually 800'000-900'000 foreign-made cars by 2010. Minister also indicates that lower custom duties on imported car components will assist the car production several-fold. On the other hand, he expressed his concern about imports of new and second-hand cars, which amounted to 500'000 units last year. Russia's domestic car market share is shrinking, while its output remains steady, said the Minister. He sees lower custom duties on imported car parts as a remedy. Minister hopes the arrangement to shift the Russian car market from commodity imports to capital investment. Car sales are expected to increase to 2.6-2.7 million units by 2010.