The state program for the exchange of old cars for certificates of compensation for part of the cost of purchasing new cars was officially launched in the last days of 2009. For a year and a half, the limit of issued certificates was fully exhausted, and last year the program was extended. Judging by the words of the Russian president, one should not expect another extension.
During the program, in exchange for cars produced before 2000, more than 601 thousand certificates were issued and a little less than 600 thousand cars were sold. Four out of every five cars purchased by Russians in this way were produced at AvtoVAZ factories. The rest were included in a special list of foreign cars assembled in Russia, compiled by the Ministry of Industry and Trade. The goal of the program was to keep the domestic automaker afloat amid the global financial crisis and to preserve jobs. According to Vladimir Putin at a meeting in the Kremlin in mid-August with regional ombudsmen for human rights, such a measure had a greater effect in Russia than in other countries. Now the financial situation is quite stable and the extension of the program can lead to the opposite effect - to make the manufacturer dependent on such artificial and non-market measures of state support.
Based on what the President said at this meeting, we can expect the emergence of a similar program for municipal owners of urban transport. On the one hand, due to the obsolete vehicle fleet, there has been an increase in road accidents recently, and on the other hand, manufacturers are asking to limit the service life of, for example, buses, to ten years. According to Putin, the urban transport park in megacities is especially in need of renewal.
A similar program of the Volzhsky Automobile Plant can replace the state program for the recycling of old passenger cars. The vice-president of AvtoVAZ spoke about the possibility of its appearance last year. Perhaps now, when the prospects of the state program have become quite clear, the activities of the Russian auto giant in this direction will become more active.
