Taxis under SPIC rules: new localization requirements

Bill No. 481272-8 (amendments to Federal Law No. 580-FZ “Concerning the Organization of the Transport of Passengers and Baggage by Taxi…”), which proposes to toughen the requirements for vehicles used in taxi services, is about to undergo a second reading. The bill was initially submitted to the State Duma in January 2024 but was later sent back for revision. The official text of the amendments has not been published, but the key provisions were disclosed in RBC and TASS publications. Below is a summary of the possible key changes and their potential impact on the industry.

First reading and reaction

The bill was passed in the first reading in January 2024 and included provisions allowing regions to establish taxi localization requirements based on a point system for manufacturing operations carried out in Russia.

However, the business community expressed concern at the tight deadlines for compliance and the risk of a resulting shortage of suitable vehicles. The Russian Union of Industrialists and Entrepreneurs estimated that only four Lada models met the original requirements (~3200 points). The Union warned that this could lead to as many as 100,000 self employed drivers being driven out of the market and could push up fares by ~15%. Industry representatives asserted that AvtoVAZ was effectively the only major manufacturer capable of meeting such requirements. Nevertheless, the updated version of the amendments, drafted with the involvement of the Presidential Administration, retains the effective date of the new requirements (1 October 2025), although it relaxes the requirements themselves through the inclusion of the SPIC mechanism and a lower starting threshold for localization.

Taxi vehicles must be sufficiently localized or built under the SPIC mechanism

It is proposed that, from 1 October 2025, only motor vehicles with a high proportion of Russian components (meeting the prescribed level of localization) or those manufactured under special investment contracts (SPICs) will be allowed to be used in taxi services. In other words, only vehicles assembled mainly in Russia or under the SPIC mechanism will be permitted to carry passengers.

Minimum localization level: 22% rising to 25%

The amendments provide for the establishment of an initial localization threshold: from October 2025 vehicles used as taxis must have a localization level no lower than 22%, which will later rise to 25%. The figure will be calculated based on a special point system (see below). The threshold is lower than in the original version of the bill, in which a requirement of ~3200 points was set, which was only met by a handful of AvtoVAZ models.

Phased implementation of the requirements up to 2033

A transitional period is to be introduced. The taxi register would also include vehicles manufactured under SPICs concluded between 1 March 2022 and 1 March 2025. For vehicles manufactured under contracts signed after that date to be placed on the taxi register, consent would have to be obtained from the Russian government. From 2028 the use of imported (non-localized) vehicles would be subject to the receipt of a special permit. From 1 January 2033 only vehicles meeting the prescribed localization level may be used to transport passengers.

According to the RBC, the condition regarding the conclusion of a SPIC within the timeframe mentioned above is currently met by two projects operating under the SPIC 2.0 mechanism: 

• The “Moskvich” plant has resumed production with the localization of internal combustion engine and EV components.
• “Motorinvest” (the Evolute brand) manufactures EVs in the Lipetsk Oblast.

Potential requirements from 2033

From 2033 the requirements will become even tougher. Only vehicles with the required number of points will be allowed to be used in taxi services. Compliance will be monitored via a special taxi register which will record a vehicle’s marque, model, VIN and date of manufacture.

Localization requirements

The localization level of vehicles is determined in accordance with Decree No. 719 of the Government of Russia, which awards points for manufacturing operations and the use of Russian components. Each operation (welding, painting, engine assembly, etc.) carries a certain number of points. Totalling these produces the overall localization score of a particular model.