The government has proposed a new method of support for Russian automotive industry

The government has proposed a new method of support for Russian automotive industry

Vedomosti – The Russian Tractor programme, planned to be launched in 2017, will be implemented within the frame of another existing state programme: preferential leasing, as told by the Deputy Minister of Industry and Commerce: Alexander Morozov. The tractor customers will be eligible for further discounts following the changes, the amount of which has not been disclosed by the ministry. The current rate is 10% of the value of the vehicle.

It’s assumed that preferential leasing will also cover new programmes: “Russian Farmer” for agricultural vehicles and “Own Business” for LCVs.

According to plans, in the event of advance payment, the leasing company will be able to provide a government reimbursable discount of up to 12.5% of the purchase price of the vehicle to leaseholders, who are entitled to additional state support measures within the scope of the Russian Tractor, Own Business and Russian Farmer programmes.

New programmes such as: “First Car” and “Family Car” may be included to another demand stimulation programme for the Russian automobile market: Preferential Car Loans, providing additional discounts on vehicles.

The government representative has not revealed how much will be allocated on each new programme. However, as anticipated, 10 billion rubles will be allocated for both preferential leasing and preferential car loans programmes.

Furthermore, subsidies will start on the utilisation of the public transport fleet and the model range will be expanded in the traditional subsidy programmes for tram and trolleybus purchases, with the addition of electric buses in 2017, as told by Morozov.

According to the deputy minister, the coverage of the subsidies on the purchases of compressed natural gas (CNG) vehicles will also expand with the inclusion of taxis to buses and machinery for housing and communal services.

The new regulations are expected to come into force at the end of the second quarter. 17.5 billion rubles (approx. $310 million) have been allocated on the main demand stimulation programme for the Russian automobile market: fleet utilisation, in 2017. There are plans to replace fleet utilisation with new addressed programmes before the end of the year, according to the sources of Vedomosti.