Russian Government Extends Scrappage Program to 2015
OREANDA-NEWS. The Government will increase the volume of state subsidies with the scrappage program in 2014 by 2.9 billion Rubles to 12.9 billion Rubles. According to the newspaper "Vedomosti", it will be sold about 200 thousand cars of different types instead of the planned 170 thousand, by which all quotas have already been taken. It was announced by the Minister of Industry, Denis Manturov, after a meeting with Prime Minister, Dmitry Medvedev. According to the head of Industry and Trade, state recycling programs will continue in 2015 - it will be allocated 10 billion Rubles, which will permit to sell about 170 thousand cars. Support will operate on the same terms, added Mr.Manturov.
Automotive market requires support in the terms of falling sales, emphasizes Mr. Medvedev. Sales of passenger cars in Russia in January-September 2014 fell by 11.9% to 1.7 million units, trucks - by 22.4% to 155 thousand units, buses - by 24% to 32,300 units, says the data of "ASM -holding".
Recycling program with the support of the Ministry Industry and Trade were launched by Russian automakers in September-October of 2014. On December 1st, it was sold 146,000 vehicles, said Mr.Manturov.
The decision to extend recycling programs is expected. Automakers have asked about it, and officials have hinted that the issue is in the elaboration, says the analyst of "VTB Capital", Vladimir Bespalov. It will support auto plants, but it does not help the market to get a plus: in 2014 the drop will be 12-13%, and in 2015 - 10%. The expected decline in sales in the next year is connected with the rising prices of cars due to the devaluation of the ruble and the overall uncertainty in the economy. In addition, 10 billion Rubles is enough not more than six months, he explains.
Mr. Medvedev instructed the Ministry of Industry to study the issue of introduction of environmental taxes on cars instead of the vehicle tax, as well as the possibility of subsidies for the purchase by regions of hybrid vehicles. By similar scheme it is subsidized the purchase of NGV buses and equipment for utilities: in 2014 for this purpose from the budget it will be allocated 3.8 billion Rubles for the purchase of approximately 2,500 units. Mr.Manturov said that in 2015 appropriations will be about 3 billion Rubles.
Hybrid cars are produced at AvtoVAZ, "GAZ Group" and KAMAZ, but they are not produced commercially. We need to develop and maintain sector of hybrid cars - they are more environmentally friendly, which is important for large cities, says the executive director of the agency "AUTOSTAT", Sergey Udalov. But such cars are unlikely to be in high demand in the near future, as they are much more expensive, as in the production, so in operation, said the expert.
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