The media learned about the possible termination of the state program of recycling and trade-in

The Russian car industry in 2017 may be deprived of state support through the program of updating of Park (subsidising discounts on new cars for disposal or drop-in trade-in), wrote in a Friday newspaper “Kommersant”, citing sources in the industry.

According to them, the government began to discuss measures of support of car industry the following year, and this program is the main candidate on a departure”. Interlocutors stressed that while the decision on this point. Clarity in this issue will appear in October-November, when it is determined the amount of the anti-crisis Fund.

According to the newspaper, against the continuation of the program is economic development. Sources explain that the Agency believes the program is “harmful” creates “pent-up demand”. According to the Ministry, upon termination of the support will collapse in sales. In this case the longer to defer the program to stop, the more will fall.

The sources also indicate that such programs in the world do not go longer than three years. According to them, the measure gives effect only in the first year when the sales growth is due to the tug of demand from recent periods and then have nothing to win, buy cars, those who would have bought them”. The monetary support industry is less efficient, it does not improve the competitiveness of market participants, in contrast, help to reduce costs or increase localization, they add.

The newspaper reminds that the update utility fleet in Russia since 2014. In 2015 and 2016 is allocated to 22.5 billion rubles According to Minpromtorga, in January-August according to the program sold 263,7 thousand cars.

In August, “Kommersant” with reference to sources in the industry wrote that the Ministry has developed a new mechanism of distribution of grants to 22.5 billion RUB. for recycling and trade-in of old cars. The publication wrote that will change the ratio of subsidies to commercial and passenger transport: if earlier they were divided roughly in half, now at commercial will account for 44% and passenger — 56%. Also in the new strategy takes into account the volume of fleet cars in Russia are older than 10 years, the share of imports within the segment, the market dynamics and the weighted average price of the car.