Ministry to Reinstate Encouragement Plans to Boost Car Demand
The Russian government has announced the restoration of the 'First Car' and 'Family Car' programs, aimed at supporting new car buyers and families with children, during a session in the Federation Council. These programs traditionally offer subsidies or favorable loan conditions to encourage car acquisition.
Under the 'First Car' program, buyers purchasing their first car can benefit from discounts on new Russian-assembled vehicles. Electric vehicles under this program receive a uniform discount of 35%. In addition, residents of the Far East region receive a 25% discount on auto loans, while other regions are eligible for a 20% discount.
The 'Family Car' program, on the other hand, offers a range of discounts to various groups. Families with children, participants in SVO, medical and educational institution employees, individuals with disabilities, and owners of cars over 6 years old can all enjoy discounts of 10% to 40%. Furthermore, families trading in their old cars and participants in SVO can also avail of the program's benefits.
However, the specific details of the 'Family Car' program, including the exact discount percentages for each group and regional discounts, were not specified in the announcement. It is worth noting that there has been a 28% decrease in the Russian car market in the last five months due to strict credit conditions and high interest rates.
In 2024, the Russian automotive market experienced a 35% growth due to state support programs. Given the recent downturn, experts suggest that the renewal of these programs could be crucial for market stabilization and growth.
For the latest, precise program details such as eligibility and benefits, it is recommended to consult official Russian government sources or automotive industry announcements, as such specifics were not covered in the most recent publicly accessible reports or news articles.
Finance plays a significant role in the renovated 'First Car' and 'Family Car' programs, offering discounts on cars and favorable loan conditions to encourage car acquisition, particularly for first-time buyers and families with children. The 'First Car' program, for instance, grants a uniform 35% discount on electric vehicles and regional discounts up to 25%, while the 'Family Car' program extends discounts of 10% to 40% to various groups, including families with children, medical and educational institution employees, individuals with disabilities, and car owners over 6 years old.
