Russia plans RUR271 billion subsidies for auto industry

Article by Anita Panait, on January 22, 2014

Russia is planning to support its auto industry with up to RUR271 billion ($8 billion) of subsidies for the three-period that ends in 2016. The subsidies will be intended for research and development and to support jobs, as well as to offset some costs related to compliance with stringent exhaust emission standards, the Russian government said on its Web site.

Car sales in Russia dropped 6 percent to 2.78 million in 2013, and may suffer another year of weak sales this year as its slumping economy discourages consumers from making big purchases, according to data from the Association of European Businesses. The AEB said car and light commercial vehicle sales are seen to dive by 2 percent in Russia in 2014 to 2.73 million units.

Russia launched a recycling fee for imported cars, enraging the European Union which argued the fee was not compatible with country’s membership of the World Trade Organization (WTO).

The United States and Japan also complained about the recycling fee. Russia responded in 2013 by saying it would apply the same fee to all cars – no matter where they were sourced.

Some analysts even quipped that the latest support program is a way of offsetting the additional cost for local carmakers. "The introduction of subsidies will reinstate such government support to the industry at no additional cost to the budget," analysts at Bank of America said in a research note.

Topics: russia, sales

If you liked the article, share on:

Comments

Recommended

August 17, 2017 is a sad day for the Dodge Viper, its fans, enthusiasts and its admirers. It is the day when the last Dodge Viper rolled off the assembly...
by - August 20, 2017
A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries