58% of car sales has been provided by government support since the turn of the year

58% of car sales has been provided by government support since the turn of the year

Finmarket – 597,900 automobiles have been sold through the government support programme on vehicle demand from the beginning of 2017 to 17 September, as the Russian Ministry of Industry and Commerce informed Interfax.

“597,900 vehicles have been sold within the scope of preferential loans, preferential leasing and park utilisation programmes from the beginning of the year to 17 September” – as told by a ministry representative.

The figure includes the 37,600 automobiles sold within the two months (17 July to 17 September) of the start of actual sales through the new demand support programmes in Russia, according to the representative. 18,100 of these vehicles have been sold via the Family Car programme, 14,700 via First Car, 3900 through Own Business, 767 through Russian Tractor and 124 within the frame of the Russian Farmer programme.

Meanwhile, according to the Ministry of Industry and Commerce data, the new vehicle market of all categories has grown by 10.6% within the January-August period, to 1.032 units. Car sales have risen by 9.6% to 911,100 units, LCV by 9.3% to 69,800, trucks by 41.2% to 43,600 and buses by 13.4% to 7300 units. Thereby, almost 58% of total sales have been realised as a result of government support.

Transport vehicle production has grown by 19.7% in Russia by the end of the first eight months of 2017, to 949,800 units. 838,800 automobiles have been manufactured (+20.5%), 62,800 LCVs (+10.2%), 40,500 trucks (+20.5%) and 7600 buses (+8.3%).

With reference to the Deputy Minister Alexander Morozov, the Ministry of Industry and Commerce has stated that the new programmes to support the demand for  Russian automotive products are under proposal to continue in 2018. According to Morozov, a participation option designed for vehicles equipped with ERA-GLONASS system-only, is also being discussed for the demand stimulation programmes. “At the same time, the system will expand its functionality to become a unique and important component of the car – the basis for linking various technological solutions and services to it” – as told in the statement.