In the first half of 2017, at least in the first quarter, we will have to maintain the already well-proven form in terms of recycling and trade-in in combination with those forms that we want to introduce next year: the “First Car” program, “ A car for a large family”, “Russian tractor”, etc.,” said Minister of Industry and Trade Denis Manturov (his words are quoted by TASS). The amount of support for next year (planned to be more than 60 billion rubles - Vedomosti) and its format have almost been agreed upon, the minister added. Previously, officials said that in 2017 they could continue programs of preferential car leasing and car loans, subsidizing the purchase of natural gas vehicles, supporting the export of cars and auto components, etc.

With the help of state support, the government wants to at least stop the decline of the market. It has been declining since 2013 and during this time it has shrunk by half; car factories are on average 40% loaded. The vehicle fleet renewal program is the main measure (it requires more than 22 billion rubles). It allows you to get a discount on a new car in exchange for recycling your old car or through a trade-in scheme. The state subsidizes a discount for automakers (40,000–50,000 rubles in the passenger segment, depending on the sales scheme). In 2017, this program may be replaced by several narrowly segmented ones, the discount for which is provided without the use of recycling and trade-in schemes. This would make it possible to attract new customers, an employee of one of the automakers is sure. Recycling no longer gives the same effect as before - those who wanted to get rid of junk cars, and trade-in increases the competition between used cars and new ones, he explains. The continuation of the park renewal program at the beginning of 2017 will most likely be a transitional stage, he thinks.

The transition to the new system is beneficial for domestic brands in the budget and mid-price segments (Lada and UAZ ), says an employee of another automaker. For passenger cars, it was planned to set a price limit of about 800,000 rubles, which would cut off a significant part of foreign cars from the programs, he explains. On average, foreign cars are almost three times more expensive than domestic cars – 1.58 million rubles, according to Autostat. At least three of the six new programs may have cost restrictions, Reuters also reported, citing a letter from Deputy Minister of Industry and Trade Alexander Morozov.

“We are for any form of government support,” says a Kia representative. “The continuation of the fleet renewal program is great news, as this program (especially trade-in) accounts for 20-25% of sales of our best-selling Kia Rio.” Renault considers government initiatives to support the industry an important factor for the development of the market, a company spokesman says. Other automakers surveyed by Vedomosti did not answer questions.

The fleet renewal program will continue until April 2017