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Children's cars: The Ministry of Industry and Trade will expand the program of preferential car loans
The Ministry of Industry and Trade intends to expand the program of preferential car loans at the expense of families with children. Currently, only families with a child in the Far East can receive a subsidized loan for the purchase of a domestic car. This initiative will help somewhat revive sales of Russian-made models, however, in the current economic conditions, other support measures would have a greater effect, experts say. Details can be found in the Izvestia article.
"We will not set records"
Anton Alikhanov, the head of the Ministry of Industry and Trade, announced plans to expand the preferential car loan program during the launch ceremony of Lada Iskra cars at AvtoVAZ.
— The categories that we had before — teachers, doctors, members of the SVO and their family members — are already saturated in many ways, they have taken advantage of state support measures. We will expand the preferential program for a family car," Anton Alikhanov said.
Anton Alikhanov, Minister of Industry and Trade of the Russian Federation, at the presentation of the LADA Iskra car at the plant of the Russian automaker AvtoVAZ in Tolyatti
The minister noted that the relevant instructions to the department were given by First Deputy Prime Minister Denis Manturov. Alikhanov stressed that "we probably won't set the records of last year, but we will be able to overcome this difficult period." The minister did not specify the conditions and possible dates for the introduction of the updated car loan program.
Preferential car loans: terms and models
The preferential car loan program for families with children was in effect until 2023. Currently, it is available only for families with a child (without restrictions on the number of children) living in the regions of the Far East (Far Eastern Federal District). The existing program provides for a discount of 25% of the cost of a car with an internal combustion engine purchased with borrowed funds. The discount for electric vehicles and hybrids is 35%. At the same time, the discount itself does not provide for a direct price reduction, but for subsidizing part of the interest on the car loan. The government compensates banks for this difference from the budget. This year, 36 billion rubles have been reserved in the treasury for preferential car loan programs, and 37.7 billion rubles each in 2026 and 2027.
Cars that are available under this program must be manufactured in Russia, have a localization level of at least 2 thousand points and cost no more than 2 million rubles. This list of the Ministry of Industry and Trade includes all Lada, UAZ and GAZ models (weighing up to 3.5 tons), and Moskvich 3 as corresponding to these parameters. The Haval Jolion crossover, which was previously also included in this list, was excluded from it at the beginning of 2025. As for electric cars and hybrids, the benefits apply to all models of the Evolute, Voyan Dream and Voyah Free, as well as the Moskvich 3e and Amberauto A5, which are produced in Russia.
Difficulties of choice
According to Maxim Kadakov, editor-in-chief of Za Rulem magazine, most likely, the program that is currently operating in the Far Eastern Federal District will be used as a basis, possibly adjusting its conditions somewhat.
— I don't think they will invent anything new. Apparently, family car loans operating in the Far East will simply be expanded to other regions of the country. Maybe they'll reduce the discount to 20%," he believes.
At the same time, the expert notes, taking into account the interests and needs of families with children, the choice of models available under the state program is not too large, especially for families with two or three children.
— For such families, the size of the car, the space of the cabin and the volume of the trunk are critically important. In this sense, "Sable", "Loaf" and "Largus" can be considered "Family" from the list of the Ministry of Industry and Trade. The first two models actually disappear: few people buy a "Sable" for personal use, even fewer of those who will take a "Loaf" for trips with the whole family. In fact, only Lada Largus remains for the target audience," Maxim Kadakov said in a conversation with Izvestia.
Will it help or not?
The experts interviewed by Izvestia have different assessments of the prospects for expanding the preferential car loan program and including families with children in it. According to Irina Frank, CEO of Frank Auto, this may have a positive impact on the Russian car market, especially in the current conditions of declining sales.
— Supporting demand through subsidies is one of the few available tools in a situation where the purchasing power of the population is limited, and car prices are rising due to inflation and other negative factors. The program focuses on families with children, a category for which a car often becomes a necessity rather than a luxury. This creates steady demand, especially for affordable Russian—made models that meet localization and cost requirements," she believes.
The expansion of benefits can strengthen the position of domestic brands and partially compensate for the market decline, which reached 25% in the first quarter, the expert notes. At the same time, Irina Frank admits that the question of the relevance of the program at high rates on car loans is ambiguous. Therefore, the effect will depend on the speed of the program's implementation and the availability of credit resources.
The expansion of the preferential car loan program for families with children is the right step on the part of the state, but this is precisely a targeted measure to support certain categories of the population, and not an incentive for the entire automotive market in the context of a reduction in car loans, says Andrey Ignatenko, director of the Insurance and Financial Services Department at Avilon AG.
— If the list of car brands is expanded, the amount of subsidies is increased and loan rates are set at 5-10% per annum, this will cause a significant increase in demand. But if the range of brands remains the same, a massive surge in sales is unlikely and this measure will not have a noticeable impact on total car sales," he told Izvestia.
To a certain extent, the expansion of the state program to families with children will help stimulate sales of Russian models, agrees Igor Morzharetto, partner of the analytical agency Autostat. However, in the current economic situation, the effect of it will not be particularly noticeable, he believes.
— Everything depends on the very high interest rates on car loans caused by the high key interest rate. For many, 25-30% per annum is an unbearable overpayment, regardless of whether there is a discount on the car under the state program or not. Because of this, the volume of car loans is seriously declining," he told Izvestia.
A direct subsidy for the purchase of a car from the state would have a much greater effect, when the budget would compensate not the interest rates to banks, but part of the cost of the car to the manufacturer himself.
— On the one hand, a potential consumer would be able to choose how to purchase a car: with their own funds or using a loan. On the other hand, real support would be provided not to banks, as it is now, but to domestic car factories themselves," said Igor Morzharetto.
Maxim Kadakov believes that it would be more logical to provide a family with a tax deduction when buying a Russian car, as it happens when buying real estate.
— In this case, it will not matter what money is used to purchase the car: for cash, on credit, borrowed from a neighbor or relative, won the lottery or due to a successful transaction on the stock exchange. The important thing is that it is the buyer, and not the bank, who will eventually receive the same benefit from the state.
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