Electric Vehicles

Russia

By Simon Johns - Oct 13, 2023

Russia is well behind the curve when it comes to electric vehicle ownership, but that’s not to say it’s not trying. The Russian government has taken several steps to get the nation’s transport carbon footprint down, but they’re not happening apace.

Its main policy objective is to domestically produce an EV. The country has a long history of car manufacturing cars – designed and produced locally, made in joint ventures with foreign carmakers or are built under license. It approved the so-called “Concept” for the production and use of electric vehicles until 2030. These include both battery and hydrogen fuel cell passenger cars and trucks.

EV account for 0.07% of an estimated total of 46 million cars driven in Russia. The government is aiming for output of 220,000 units, which would increase the proportion of EVs on the road to 0.4%.

The government intends implement the concept in two stages. In phase one until 2024, at least 25,000 locally manufactured EVs and 9,400 e-charging stations. In 2022, 2,000 units.

During the second phase, EVs should account for at least 10% of total vehicle production. It also envisions the launch of launch of at least 72,000 e-charging stations and 1,000 hydrogen charging stations. It also includes battery manufacturing capacity.  

To kick start domestic EV production, special investment contracts will entice investors to finance localized production of EVs, motors, batteries, fuel cells, cathode and anode material, electronics and other equipment. Sanctions will likely dissuade foreign investors.

On the consumer side, the government is offering incentives such as lower rates of transport tax, parking fees free toll roads and favourable loans to purchase cars. It also aims to stamp up 25% of the purchase price of Russian-made EVs, or up to U.S.$6,400.

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