15 billion rubles state support in 2021 for the Russian car market

15 billion rubles state support in 2021 for the Russian car market


 

Kommersant.- The government plans to allocate 14.9 billion rubles state support on demand stimulation for the automotive industry for 2021 in accordance with the budget bill, which is currently being discussed in the State Duma. In particular, 11.1 billion rubles will be allocated on preferential car loans in 2021. Within the framework of the programme, the buyer will be entitled to a discount on the deposit, equivalent to 10% of the vehicle value.

The state support was initially planned as 12.5 billion rubles for 2020, including the 10.5 billion rubles on preferential leasing. As a matter of fact, 5.5 billion rubles from that figure have been used to pay off bank loans resulting from the implementation costs of the programmes from previous years, which reduced the real volume by a half.

In the meantime, the loans problem will not be as steep in 2021. As told by VTB bank to Kommersant, there are no plans to subsidise old car loan programmes in 2021, due to reaching the end of the planned schedule of loans. As reported by Kommersant, three-year loans were issued under the programme as a main form of practice. VTB reminds that the programme will be implemented for a shorter period, due to the reduction in the budget.

Preferential car leasing forms the second component of state support. On a year-on-year basis, the allocation amount on the programme almost doubled in 2021, up from 2 billion to 3.8 billion rubles. However, as in car loans, the financing of preferential leasing rose significantly in 2020, to 8 billion rubles for leasing funds, in addition to 2.5 billion rubles for the new Affordable Rental programme.