Sales within the state incentives programme in the period from 1 January to 1 November 2015 amounted to 453’573 car. Only from October 26 to November 1, was implemented 15’593 cars. The largest number – 280’000 cars in 2015 was a goal in the framework of the fleet renewal. Leaders in this case remains AVTOVAZ, the sales of which amounted to 95’000 vehicles, 42% of the sales of them fall on the Lada.
In 2015 the Russian government at the request of the Ministry of industry and trade of Russia has conducted 3 programs to stimulate demand for the cars program fleet renewal, preferential loans, preferential leasing.
So, from may 2015, 28’000 vehicles were sold under the program of preferential leasing. 1300 people took advantage of this new for Russian market product, as the purchase of vehicles for leasing to individuals. According to experts, this tool for stimulating demand in the Russian market is promising.
The Russian auto leasing company Carcade revealed a significant increase in financial leases of vehicles of domestic brands in the period of implementation of the state program of preferential leasing of transport. Portfolio transactions the Carcade concluded with customers on the terms of the program (with the 10% discount), the share of contracts on transfer of lease cars VAZ, GAZ, UAZ, KAMAZ, PAZ, vis, NEFAZ total is 33%. In 2014 and early 2015 (before program start) the share of transactions of leasing of cars of different classes of Russian brands in the auto leasing portfolio of the company does not exceed 20%.
The content of the program of fleet renewal remains a matter of debate among market players. Automakers discussed with the Ministry of industry the proposal for the correction of the system of compensation payments under the state program of fleet renewal to 2016 quotas were given to automakers in proportion to the level of localization of production. Previously, quotas were allocated depending on the volume of production of cars. With the introduction of the new system will benefit the following companies: Alliance AVTOVAZ-Renault-Nissan (the level of localization 68%), Volkswagen Group and Ford (45%), Hyundai produces at the St Petersburg plant also brand Kia (46%), Nissan (39%).
Moreover, the Ministry has proposed from January 2016 to implement index for recycling at 65%. At the moment the basic rate for passenger cars is RUB 20,000, for trucks and buses – RUB 150,000. Despite the fact that this fee is paid as importers and domestic producers, the local market players receive subsidies, the size of which is often comparable to the required amounts. Automakers are asking the government to waive the recycling collection. Indexing has not yet been approved by the government, but this decision has been made.
According to analysis of experts, the number of issued loans will increase in 2016 19.9%. Thus, at the moment the loan market is decreased because of falling demand for new cars in connection with crisis. The loan market is in crisis in connection with falling of sales of cars. In January–September 2015 year in Russia were sold on credit 35-40% of all vehicles compared to 45% for the same period in 2014.
At the moment the main trend for the increase in demand for car loans is a decrease in Bank interest rates. Thus, Sviaz-Bank has lowered rates on programs, the purchase of new cars and allocated separately purchase used cars. Now the rate under the program “Your car”, in which customers can get a loan to buy a new car or commercial vehicle 17%-20% per annum, and the offer of “Your car” – 20-23% per year. A minimum down payment equal to 20% of the car’s value, the loan amount may reach 5 million rubles. Gazprombank also lowered the rate on a standard loan program. Now borrowers can receive a loan to buy a new car foreign or domestic production under 15,5—19,5% per annum (previously 17.5 to 20.5%) depending on loan term, type of car and dealership. Minimum down payment is 20% of own means of the client of the value of the car.
As an example of the success of stimulating demand through car loan can be the Rolf company, which sells about 40% of new cars through loans. The program of preferential car loan applies to cars and light commercial vehicles 2015 release. The cost of the purchased vehicle may not exceed 1 million roubles, and the total mass of 3.5 tons. When the advance payment in the amount of not less than 20% of the cost of the car loan interest rate will be reduced by government-subsidized in the amount of 2/3 of the Bank of Russia key rate effective on the date of the loan agreement (currently 11%). Credits will be issued until the end of 2015 for a period of up to 36 months.
