Russia's Industry and Trade Ministry resumes programs to incentivize demand for cars at 20.7 bln rubles

MOSCOW. July 14 (Interfax) - Russia's Industry and Trade Ministry is resuming programs to stimulate demand for domestically produced automobiles in 2022 with a total budget of 20.7 billion rubles.

"Leading Russian banks and leasing organizations have confirmed their willingness to ensure the launch of subsidized auto financing and subsidized leasing programs in the second half of July 2022," the ministry press service said.

Under the auto financing program, the discount subsidized from the federal budget is as high as 20% of the price of the vehicle, while for automobiles sold in the country's Far East Federal District, the discount is up to 25% to offset the cost of delivering the vehicle from the European part of Russia.

"All models of UAZ, Lada and GAZ costing up to 2 million rubles will participate in the subsidized auto financing programs. And also all Evolute brand electric vehicles produced at the Motorinvest plant in Lipetsk, for which there is a higher discount of 35% of the price of the automobile, but not more than 925,000 rubles," Industry and Trade Minister Denis Manturov was quoted as saying by the press service.

Production of Evolute electric vehicles will be launched in September and the first vehicles will go on sale the same month.

The basic discount under the subsidized leasing program is 10% of the vehicle price, but not more than 500,000 rubles, and it will apply to all cars, light commercial vehicles and trucks built in Russia under the UAZ, Lada, GAZ, Kamaz and Ural brands. The discount for electric vehicles will also be 35%, up to 925,000 rubles per vehicle.

Sales under the programs to boost demand are expected to total at least 50,000 vehicles by the end of 2022 under the auto financing program and at least 25,700 vehicles under the subsidized leasing program.