Russian government will allocate 128 billion rubles for automotive this year

Russian government will allocate 128 billion rubles for automotive this year

TASS – The amount allocated by the government of Russian Federation for the support of the automotive sector in the country will increase gradually, with the new programmes announced. The aforementioned amount has already exceeded 128 billion rubles.

The relevant statement has been made by the head of the Ministry of Industry and Commerce Transport and Privately Owned Vehicles Department: Alexander Morozov, during a sectoral conference. According to Morozov, the ministry aims to contribute by approximately 400,000 vehicles to this year’s sales volume, by means of support programmes:

  • Approximately 40,000 new automobile sales, as a result of the transportation of vehicles manufactured in the far east to the western regions of the country.
  • Extra 1500 vehicle sales, by prohibiting the admission of imported vehicles to government purchase tenders.
  • 97,000 vehicle sales in January-May and 44,000 in June-July periods, thanks to the utilisation programme in wheeled transport vehicles park.
  • 190,000 vehicle sales, resulting from the induced car credit programme.
  • 10,000 vehicle sales through automobile leasing.

Similar programmes have also been introduced in order to increase the sales of light commercial vehicles, however in smaller scales.

Morozov states that the ministry will give indirect support to car manufacturers as well. Accordingly, the government plans to spend 7 billion rubles on the modernisation of production, 59 billion rubles on industry subsidies and 25 billion rubles on government purchase guarantee for GAZ Group.

In relevance to all these developments, the government has revised its prediction for the automobile market in 2015 positively, as 1.98 million vehicles (-24%). The previous prediction, in the absence of government support, was 50% shrinkage, with 1.3 million vehicles.