Russia Aims to Cooperate with Tesla in Field of Electric Vehicles, Industry & Trade Minister of Country Said

Photo: Moscow Tesla Club

After Tesla CEO Elon Musk said that in the future Tesla could see Russia as a potential location for a manufacturing facility, Russian politicians were encouraged. Industry and Trade Minister of the country Denis Manturov said that Russia is considering the possibility of cooperation with Tesla in the field of electric vehicles, if "the localization of technologies and the creation of added value will take place in Russia."

Tesla is one of the most attractive companies in the world, as it has prospects in the next decade to become one of the largest in the global automotive market. The company's products are in high demand, and its factories bring thousands of jobs, increasing the economic position of the regions and countries in which they are located. That is why, after Musk mentioned the possibility of locating a Tesla factory in Russia, local politicians stepped up to the potential opportunity.

In an interview with Arguments and Facts, Industry and Trade Minister of Russia Denis Manturov said that if Musk or other manufacturers decide on larger projects in the field of electric vehicles, then the government's task will be to create incentive regulatory mechanisms. The minister also said that Russia has its own technologies for the production of electric vehicles, however they are currently too expensive, so they cannot be scaled up. Domestic producers cannot reduce prices to a level that meets the needs of the local market. Nevertheless, if Tesla decides to implement large-scale projects in the field of electric vehicles, the task of the state will be to provide the charging infrastructure.

"If Elon Musk or other manufacturers, including ours, decide on larger-scale projects in the field of light electric vehicles, then our task will be to create a charging infrastructure (first of all, this will require the support of colleagues from the Ministry of Energy) and stimulating regulatory mechanisms - for example, we will discuss and resolve the issue of transport tax."

Manturov also noted that the main task of the state is to create added value that remains in the country and localize technologies that they do not have or for which they would like to get additional competence. Therefore, if Tesla is ready to unite with Russia in terms of technology exchange and added value creation, then the country is ready for such cooperation.

Manturov acknowledges that for there to be a large increase in demand for electric vehicles in Russia, they need to be able to compete in price with cars with internal combustion engines. Recall that electric vehicles are not very popular in Russia and in 2020 in the country with a population of nearly 147 million, only 5,300 used and about 700 new electric vehicles were registered.

H/T Rakhim Dzhairkhanov

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