Government has made a forecast on the Russian automotive market for 2020

Government has made a forecast on the Russian automotive market for 2020


 

RNS.- The Ministry of Industry and Commerce predicts a possible shrinkage of 1.5-2% in the Russian automotive market in 2020.

“As calculated by the Russian Ministry of Industry and Commerce, the sales of new automobiles in the Russian Federation will remain in 2019 levels, with a possible adjustment of 1.5-2%” – as stated in the press office report.

Further proposals to increase funding for state programmes to stimulate automobile demand have not been ruled out by the Ministry of Industry and Commerce, on the other hand.

“We will continue with the monitoring of the Russian car market and make efforts to fulfil the production potential of the national automotive industry and if necessary, will come up with proposals to increase funding for ongoing state programs,” as stated by the department.

Currently, there are plans to allocate 5 billion rubles on the government programme of preferential car loans First Car and Family Car, and 9.8 billion as a single leasing subsidy in 2020, 1.45 billion rubles of which will go to transport vehicles, 1.5 billion rubles to urban overground electric transport, and 3.3 billion rubles to gas-operated vehicles.

According to AEB, a year-on-year shrinkage of 2.1% is expected in the Russian automotive market in 2020, following a sales figure of 1.72 million automobiles. The sales shrank by 2.3% in 2019, with 1.76 million units, on the other hand.