Russian government is restarting the vehicle utilisation programme

Russian government is restarting the vehicle utilisation programme

Vedomosti – Russian government is resuming the utilisation programme as of 01 September, in order to promote the shrinking vehicle market. The minister of Industry and Commerce: Denis Manturov has stated that the programme will remain in force for four months.

As is known, the new car market has shrunk by 10.5%, LCV market by 18.8% and truck market by 15.8% during the first seven months of the year. (Avtostat data)

Russia had implemented another utilisation programme during the 2010-2011 period. The new programme differs from the former one on three aspects. This time, the programme covers trucks and buses, alongside cars and LCVs. Secondly, corporate bodies are eligible to benefit from discounts on car purchases, as well as real persons. Finally, the old automobiles may either be scrapped or used as trade-in (minimum age limit: 6 years).

The amount of discount is 50,000 rubles for scrap and 40,000 rubles for trade-in. The deduction for trucks, buses and LCVs are 350,000, 300,000 and 120,000 rubles, respectively.

The resource allocated by the government for the programme is 10 billion rubles. For comparison; the amount allocated for the former programme was 30 billion rubles.