The Ministry of Industry and Trade of Russia decided not to restart the preferential car loan program, which compensates for 10% of the advance payment for a car worth up to 1.5 million rubles, Kommersant reports, citing sources.
Earlier, the department allocated 5 billion rubles for the implementation of this support measure. In May, the selection of banks that will take part in the program took place. However, now the Ministry of Industry and Trade did not confirm its launch from August or later and withdrew the funds provided to credit institutions.
The ministry said it was evaluating the feasibility of resuming the program. They explained that now there is an exuberant demand for cars. Thus, sales of cars exceed the indicators of the pre-pandemic 2019, as a result of which the market is overheated.
The fact that the Ministry of Industry and Trade decided not to extend the preferential car lending program was confirmed by Rosbank Auto and VTB. In the first, they said that further steps by the authorities will depend on demand and the general situation in the car market, as well as the level of inflation and the willingness of manufacturers to increase the supply of cars.
Daria Timchenko, head of lending and insurance divisions at Fresh Auto, noted that now there are cars with a cost of up to 1.5 million rubles. “very little”. Market participants indicated that in the current realities, taking into account the growth of inflation and prices for cars, it would be correct to change the program: to subsidize the loan rate instead of giving a discount on the car.