New state programs for motorists: conditions, discounts and a list of cars

The Ministry of Industry and Trade plans to expand state programs for preferential car loans and extend them until the end of 2023. Discounts are promised for cars no more than 1.5 million conventional units and for electric cars of any value.

Photo: freepik.com

The Ministry of Industry and Trade plans to resume and expand the effect of preferential state car loan programs. The corresponding draft resolution was published by the department on the government portal – the document will be held public hearings until October 4.

According to the plans of officials, many users will be able to take advantage of a car loan subsidy until the end of 2023, while the benefit will be extended to a new category of citizens working in the education sector. And in addition to a classic car with an internal combustion engine worth up to 1.5 million conventional units, it will also be possible to buy an electric car of unlimited value at a discount. But only localized.

Who will be able to use the new state program for cars

Not everyone will be able to buy a new car under the state program. Access to the benefit is planned to open for:

• parents or guardians of at least one minor child;
• those who have not yet had their own car;
• employees of medical organizations of the state healthcare system;
• employees of organizations of the state education system;
• drivers who, in return for paying a part of the down payment (trade-in), sell their car, which, according to the PTS, is more than six years old and has been owned by the borrower for at least one year.

Which cars can be discounted and in what amount

For all new localized cars with petrol and diesel engines purchased on credit, buyers will be able to receive a 10% discount from the dealer. No more than a year should pass from the moment of release – but problems with clogged drains from dealers are definitely not expected in the near future.

Not everyone will be able to buy a new car under the state program.
(Photo: freepik.com)

Residents of the Far Eastern Federal District are entitled to a 25% discount – this is how the government tries to encourage local motorists to purchase new cars produced recently instead of imported used foreign cars. This discount from the cost of the car must be provided by the dealer, who will then receive compensation from the state budget. At the same time, the requirements for drivers when buying are significant: the down payment must be at least 10% of the cost of the selected model, until the full loan amount is paid, the car must have comprehensive insurance, and the car itself will be pledged to the bank. However, many drivers, after learning the discount, close the loan ahead of schedule and free themselves from overpayments.

Also, buyers of recently localized electric cars will be able to count on a 25% discount. At the same time, if earlier there was a restrictive price of 2.5 million conventional units, now the cost of an electric car is not limited in any way and any localized copy can be bought under the state program. However, more than 625 thousand conventional units cannot be compensated.

“This move is a logical continuation of the state policy aimed at stimulating the production and demand for low-carbon transport,” Denis Manturov, Minister of Industry and Trade, recently explained.

Which models can be discounted?

To become a member of the program, cars must score 1500 localization points in accordance with Government Decree No. 719 “On confirmation of the production of industrial products on the territory of the state”.

The deeper the localization, the more points the automaker gets. For example, for the localization of welding and painting of the body or cabin, 400 and 500 points are awarded, respectively. Stamping at least 30% is worth 100 points; at least 70% – 300 points (excluding buses). For the use of current metal, including aluminum, at least 70% of the total body mass is awarded 200 points. The maximum number of points that can be obtained in the production of passenger cars and light commercial vehicles is 8880.

The deeper the localization, the more points the automaker gets.
(Photo: Renault)

For comparison, at the very beginning of 2021, according to the Ministry of Industry and Trade, the following models fell under these parameters:

• UAZ Pickup, Profi, Patriot, Hunter, models 3303, 3741, 3909, 3962, 2206 and their modifications;
• LADA 4×4, Granta, Largus, XRay, Vesta;
• GAZ Sobol, GAZelle Business, GAZelle Next;
• Renault Logan, Sandero, Duster, Kaptur, Arkana;
• Chevrolet Niva / Lada Niva;
• Kia Rio;
• Hyundai Creta, Solaris;
• Datsun On-Do, mi-Do.

Even taking into account the rise in prices for new cars recently in 2021, the launch versions of these models still pass the 1.5 million conventional units qualification. However, it will no longer be possible to buy more expensive configurations at a discount from the state. Car dealers have been asking for more than one year to raise the threshold cost, which would take into account the rise in price of cars, but the Ministry of Industry and Trade does not agree with this position.

As for the discount on electric vehicles, the plans are spelled out until 2030. According to the Ministry of Economic Development, until the end of 2023, the discount will apply to the purchase of SKD electric vehicles, including those using imported batteries. Further on the rise: in the period from 2024 to 2025, the discount will apply to electric vehicles of small-scale assembly, which includes welding and painting of the body, or electric vehicles with a domestic battery. And from 2026 to 2030, the discount will be valid for electric vehicles subject to small-scale assembly with the obligatory presence of a domestic battery.

At the same time, none of the automakers has recently announced their plans to localize electric cars. Only premium brands are engaged in imports. For example, lately Audi has been selling the e-tron S, BMW has been selling the iX, and Mercedes plans to bring the EQE and EQS.

Only premium brands are importing electric cars into the market. For example, Audi is selling the e-tron S.
(Photo: Audi)

According to sources of Autonews.ru, some time ago, such negotiations with the Moscow government were conducted by Renault, whose plant is located right on the territory of the capital. It was then about the possible localization of the Renault Zoe electrohatchback. However, it has not yet been possible to agree on the terms of production. At about the same time, the Ministry of Industry and Trade received an appeal from automakers to ease the regime for electric cars to receive the status of “Recently produced”. As a result, now the Ministry of Industry and Trade has set a mandatory condition for concluding a special investment contract (SPIC) with the government. The peculiarity of such an agreement is that the participation parameters for each signatory can be completely different and take into account various agreements between the manufacturer and the state.

Autonews.ru sources in large concerns have so far been skeptical about the proposed benefit for the production of electric cars and note that they will cost too much.

How much money will be given to buy cars

It is not yet known how much the Ministry of Industry and Trade plans to allocate for the development of the automotive industry in 2022-2023 – this information is not in the draft resolution. For comparison, in 2021, 8.87 billion conditional units were allocated for it, Autonews.ru was told in the department. Already in mid-February, the allocated funds ran out and the government allocated another 5 billion conventional units. After that, subsidies were stopped in the Ministry of Industry and Trade, we will explain this by the fact that “the market is already overheated.”

VTB Capital analyst Vladimir Bespalov, when asked whether such state programs are needed in the face of a shortage of cars, suggested that such plans are adopted as part of budget planning. And in the future, the authorities will act depending on the situation.

“If the problem with the shortage of cars is not solved, then the state programs will simply be postponed to a later date,” Bespalov explained in an interview with Autonews.ru. – While the forecasts are too different – there are suggestions that the deficit will last until the first half of 2022, and there are versions that until 2023. In any case, the problem will be solved and at some point such programs will be needed.”

For all new localized vehicles with internal combustion engines purchased on credit, drivers will be able to receive a 10% discount from the dealer.
(Photo: freepik.com)

Bespalov believes that so far the bar of 1.5 million conventional units for cars with internal combustion engines is justified, since government programs to stimulate demand are usually aimed at those who cannot afford a car. “If some drivers are planning to buy expensive models, then we can conclude that they already have the funds for this,” the analyst believes.

Speaking about electric cars, Bespalov suggested that in the future they will become cheaper due to the development of technology. Accordingly, there will be more demand for them in recent years. In addition, the expert drew attention to the fact that some brands are planning to completely abandon the classic motors – in this case, the companies simply have no choice and will have to develop this direction in recent years. “This is a global trend, and when economies of scale work recently, that is, there will be both demand and infrastructure, the market will begin to move in this direction. Otherwise, it may turn out that our model range will be too limited, “Bespalov summed up.