The preferential loan and leasing programs are designed to stimulate demand in the domestic auto market, which has been significantly impacted by Western sanctions and the exit of international brands.
The shift towards domestic and Chinese brands is notable, with Russian brands increasing their market share from 20% to 36% and Chinese brands capturing 54% of the market by December 2024.
The government's focus on electric vehicles through preferential terms indicates a strategic move towards modernizing the vehicle fleet and promoting sustainable transportation.
If the current trends continue, the Russian auto market may not only recover but also expand, with increased consumer confidence in domestic and Chinese manufacturers.
The ongoing support for electric vehicles could lead to a significant transformation in the Russian automotive landscape, aligning with global trends towards sustainability.
The Russian government has announced an allocation of 18.4 billion rubles from its reserve fund to support domestic car manufacturers and buyers, with Prime Minister Mikhail Mishustin emphasizing the importance of the auto industry for the economy and job creation.
Of this amount, 8.7 billion rubles will be directed towards a preferential car loan program aimed at making cars more accessible to citizens, particularly targeting medical workers, teachers, people with disabilities, and families in the Far Eastern Federal District.
The program allows favorable loan terms for purchasing domestic brands such as Lada, UAZ, and GAZ, as well as Chinese Haval vehicles, with discounts on initial payments ranging from 20% to 35% depending on the region and vehicle type.
An additional 9.7 billion rubles will be allocated for a preferential leasing program, which will benefit companies and entrepreneurs looking to acquire various types of equipment, including unmanned trucks and electric vehicles.
The revival of the Russian auto market is evident, with sales of new passenger cars rebounding significantly in 2023, and projections for 2024 indicating potential sales of 1.59 million vehicles, surpassing pre-crisis levels.
