Russia’s Car Parts Industry Urged to Cluster

Russia's domestic auto parts companies face sharp decline unless the government helps them with subsidized clusters in which they can share innovations with researchers and each other, according to speakers at the Cluster Summit in Moscow.

An influx of foreign parts makers is pushing Russia's own components industry to the breaking point, declares Yuri Mikheyev, deputy head of the Center of Innovative Development and Cluster Initiatives.

Without help, he forecasts, the auto sector in Russia's Samar region will shrink nearly from 49 billion rubles (€1.1 billion) to 26 billion rubles (€590 million) by 2020. But if the government supports a cluster strategy, the region's industry could expand 6% to 42 billion rubles (€1.2 billion) over the same period.

The Moscow Times notes that there are several automobile clusters in Russia now, especially in the Central, Northwest and Volga districts. It says most are part of economic zones offering investors tax benefits and an existing infrastructure.

The head of a business development agency in Kaluga tells the conference that foreign carmakers have complained that Russia's domestic parts industry is plagued by high prices, low quality and an uncertain ability to deliver the volumes required. He adds that a shortage of trained professional workers also is a challenge.