Russian Government Can Change Scheme of Subsidies for Recycling Cars
OREANDA-NEWS. Automakers convince the Ministry of Industry to change the scheme of subsidies for recycling of old cars, by increasing the competition for access to the money of the state.
According to the newspaper "Vedomosti", by citing sources in the industry, the main considered option for 2015 - is the distribution of subsidies by segments of the market, depending on the type of vehicle. It may be two blocks (passenger cars and all commercial vehicles) or four (passenger cars, LCV, trucks and buses). The shares are not determined yet, sources say: there is a debate between officials and industry representatives. They expect that the decision by Ministry of Industry will be taken until the end of the year, and in January it will be a document from the government. The total amount of subsidies for 2015 by the state program of parc renovation that was previously announced by the Minister of Industry and Trade, Denis Manturov - is 10 billion Rubles.
The existing scheme provides the allocation of limits directly to producers. It was intended by 2 billion Rubles for AvtoVAZ, KAMAZ, "GAZ Group" and "Sollers", another 2 billion rubles - for all other participants. Totally it was planned to allocate 10 billion Rubles, but the program was so popular that manufacturers have taken ahead of their limits. At the beginning of December, it was added other 2.9 billion Rubles in the state program. The new money will be allocated with account of the sale of any producer to expand the program, sources say. The limits are connected to the number of cars and the amount of discounts. In general, it is a transitional model, they added.
All 12.9 billion Rubles of subsidies will be allocated to the end of December of the anti-crisis fund of the government. Government decree, which is regulating the distribution of subsidies, has already been signed, told the interlocutors of "Vedomosti".
Binding to the segments - is more understandable and effective scheme, which increases competition within the segment, say industry players. This approach is more than justified, as it allows the flexibility to reallocate funds between producers, depending on demand, agrees analyst of "VTB Capital", Vladimir Bespalov. This is beneficial first of all for manufacturers of inexpensive mass models - as Russian brands, so foreign brands, commented industry participants. If there is no differentiation (eg, by engines, the class), then low-cost cars win, in the price of which the share of subsidies is the largest, agrees Mr.Bespalov.
Change of the size of discounts is not discussed, but the state support of scheme trade-in could not be in 2015, - the question is studied, sources say. The main objective of recycling programs - is to update the outdated parc of Russia. This scheme was used in 2014 as a temporary measure to support the falling car market. In case of refusal of state trade-in foreign automakers will suffer first of all: this scheme accounts for more than half of the sales of foreign cars under recycling programs. In total sales by the state program the share of trade-in is less - about a third, reported earlier the Ministry of Industry. Refusal from trade-in, if it happens, will reduce the popularity of the state program of parc renovation, but on the other hand, it will permit to stretch the state support for a longer period, says one of the dealers. If the demand is the same as it is now, then 10 billion Rubles will be enough for not more than six months, say Mr.Bespalov and an employee of one of car plant.
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