Ministry of Industry and Trade distributed quotas to utilize vehicles
OREANDA-NEWS. Ministry of Industry and Trade determined how to allocate 10 billion Rubles, allocated for the continuation of the state program of parc renewal in 2015. Carmakers of passenger cars will receive 60% of the funds, automakers of commercial vehicles - 40%, wrote the newspaper "Vedomosti", citing its sources. Then the money will be divided between the companies, also with account of the share in total production in Russia the last year. According to sources, it was discussed previously the idea not to set limits for each automaker, but foreign automakers who have built plants in Russia, asked to keep such a scheme.
Based on this, AvtoVAZ may get less than 1.5 billion Rubles, whereas only for the second half of last year, grants from the state budget were 2.7 billion Rubles. State subsidies for KAMAZ, "GAZ Group" and "Sollers" will be close to the level that was in the allocation of 10 billion Rubles in 2014. In addition, some companies are asking the Ministry of Industry to subsidize part of the cost for discounts over limits at the end of 2014, say industry players. According to them, the recycling program has proven popular and it has reduced the rate of decline in sales, and in December the market has experienced high demand due to the devaluation of the ruble.
Last year, it was also defined limits for local manufacturers, depending on the contribution to the production (in 2013): 2 billion Rubles were accounted for AvtoVAZ, KAMAZ, "GAZ Group" and "Sollers" each and another 2 billion Rubles for the rest. During the allocating of additional 2.9 billion Rubles, allocated by the Government in 2014 to expand the program, it was taken into account the results of sales in the main part of the program, sources say.
Previous program operated in the September-December of 2014. Companies were given discounts from 40 thousand to 350 thousand rubles for the purchase of a new car, depending on the type of vehicle and schemes of old car delivery - a recycling scheme or trade-in.
Totally, according to Ministry of Industry and Trade, in 2014, it was sold 188,178 vehicles of various types by the program of parc renovation. For passenger cars it was 82.37% of total sales, LCV - almost 12%, trucks - 4.41%, buses - 1.24%. AvtoVAZ sold most of all by the program; the Top-5 also includes "Kia Motors Rus", UAZ, "Volkswagen Group Rus", "GAZ Group". Most of the cars were sold under the scrapping scheme (almost 64%), the main customers were individuals (90%).
The money was transferred to all companies - participants of the state program at the end of December, say industry players. This year, the recycling program with the support of the state was resumed by AvtoVAZ, "Sollers", Toyota and Nissan - on the same terms. It is planned to launch this program also by other companies.
Now the Ministry of Industry asked to allocate another 10 billion Rubles to expand the recycling program this year, as the results of the program in 2014 showed that 10 billion Rubles may be sufficient only for a quarter.
This year, due to the expected sharp fall of the market (minus 24%, according to AEB – it is more than twice as many as in 2014) and rising prices for cars due to the ruble devaluation, the effect of the program will be noticeably smaller, industrial participants believe. The main benefit will be derived by the budget car manufacturers, for the production of which discounts are more tangible, supposes the analyst "VTB Capital" Vladimir Bespalov. Schematic diagram of the distribution of funds does not change, but the cars get a greater support. For I quarter it is logical, the expert said: the first quarter is the weakest by sales for commercial vehicles, passenger cars are sold better.
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