Government support for the Russian automotive market has been extended

Government support for the Russian automotive market has been extended

Vedomosti – The Russian government has extended the stimulation programme for automotive market in 2016 – fleet renewal (22.5 billion rubles allocated), induced car loans (11.3 billion rubles, including the obligations from 2015) and induced car leasing (5 billion rubles). The relevant regulations have been published on www.government.ru site on Thursday.

Some of the conditions of the programme have changed as compared to 2015. Thus, the maximum value of automobiles to be eligible for the induced car loan programme has been increased by 150,000 rubles to 1.15 million rubles (the credit costs go down on account of the budget), as warned by the sources of Vedomosti in January.

The main measure of the support programme is the renewal of the automobile fleet (the discounts made on cars by manufacturers will be compensated from the budget) (the manufacturers will be compensated with discounts on cars from the budget). This year, the conditions for receiving government subsidies will be relaxed for major truck and bus manufacturers, in relation to the production quantity of the previous year. The decision has been taken due to falling production numbers, as told by an employee from one of the manufacturers. For example, KAMAZ has manufactured 30,000 trucks and buses in 2015, in comparison with over 35,000 the year before, according to figures given by the company representative.

Changes have taken place in induced car leasing programme as well. From now on, not only the vehicles manufactured during the current year, but also the year before will be eligible for the programme.

Participation conditions for leasing companies have also been subject to changes. In 2015, it was compulsory for all candidates to have signed a minimum number of 100 transport vehicle leasing agreements in 2014. The period in question for the previously signed contracts has been extended under this year’s terms (2014-2015). Furthermore, the leasing companies now have the opportunity to participate in the programme, as long as their equity capital exceeds 500 million rubles.