Notes from the statements made by Dmitry Medvedev and Denis Manturov.
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Dmitry Medvedev:
Government meeting
A production decline has become apparent in the auto-making industry, mostly because of a downturn in demand for vehicles.
The auto-making industry is a key sector of the economy, influencing the situation in related industries; it is necessary, therefore, to adopt comprehensive measures, including incentives encouraging the growth of demand and the production of new vehicles.
For this purpose, mechanisms of technical regulation and monitoring state purchase are being used. This work will be continued. But there are other ideas as well. The Ministry of Industry and Trade suggests implementing a large-scale vehicle replacement programme running from September to the end of this year. Owners surrendering old vehicles for disposal or wishing to make a part-exchange deal will be able to receive discounts on new vehicles from producers and dealers. This can strongly encourage vehicle sales.
Additional federal allocations will be required for this purpose.
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Denis Manturov: The programme will be launched on 1 September and will be in effect until 31 December of this year. The allocations for the programme will amount to 10 billion roubles. Funds will be conveyed to the regions of the Russian Federation as subventions at the end of this year. The programme itself will start being carried out on 1 September by dealers based on deliveries and by producers at their own expense, with the discount premium to buyers to be compensated by the regions at the end of the year.
Under this programme, we are planning to sell more than 170,000 different varieties of vehicles before the end of this year.
The programme will cover all categories of vehicles – passenger cars, off-road vehicles, light commercial vehicles, lorries, and buses.
In this case, we make no difference between individuals and legal entities. The main distinction from the previous programme is that we plan not only disposal of vehicles against a subsequent discount but also discount-carrying trade-in deals for vehicles older than six years. There is no difference in this case whether you trade in a lorry and buy a passenger car or vice versa.
The programme rules are maximally universal and meant to give buyers a choice. Discounts on disposal deals are 40,000 roubles plus for passenger cars and up to 350,000 roubles for lorries. For trade-in deals, 40,000 plus and up to 300,000, respectively.
This is a targeted programme intended to run until the end of this year; it will be limited to this period. Where plans for the next year are concerned, they will depend on the market situation and the state of the auto-making industry. Decisions on market incentives will be approved on a segment-to-segment basis subject to their development rates not earlier than the middle of the next year.
The programme has been fully coordinated with the Ministry of Finance as have the sources of funding. The ministry will redistribute the allocations it has received.
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