Russian Ministry of Industry and Commerce: “No automobile credit programme will be promoted this year”

Russian Ministry of Industry and Commerce: “No automobile credit programme will be promoted this year”

Vedomosti – The Russian Ministry of Industry and Commerce will not start an induced automobile credit programme this year. The Minister: Manturov has stated that the sales figures for the first quarter have been analysed and it has been decided that the decline in the market has not reached a level, which would necessitate the reinstatement of the programme. Manturov has advised the manufacturers to cooperate with the banks more actively, rather than expecting a new programme.

As one may remember, the Russian government had implemented an induced automobile credit programme between July and December 2013 and issued 260,000 credits within the scope of the programme. The amount was equivalent to 9.3% of the Russian car market in 2013.

The sectoral analysts are of the opinion that the government’s current decision not to subsidise the car market by issuing automobile credits is not a disaster, however this situation will affect the market negatively, especially in popular segments. A tough second quarter is being anticipated amongst the members of the market.