Russia is planning to subsidise EV purchases to stimulate demand and production – but only for domestically produced models.
Maxim Kolesnikov, department head at the economy ministry, said that the new subsidy would cover a quarter of the purchase price of any Russian-made electric car – to a maximum of 625,000 roubles or around $8,570.
The subsidy could come into effect as soon as next year, he told Reuters and would be a critical part of the government’s plans to spur EV production.
At present, only 11,000 of Russia’s 45 million cars were EVs – and most of those were used cars. However, Russia has set itself a target of producing 220,000 EVs by 2030 and authorities have said that foreign car manufacturers have expressed interest in producing their models in the country.
Russia’s adoption of EVs lags significantly behind the rest of Europe. In Norway, for example, nearly 60% of new cars sold during Q1 2020 were electric while the other Nordics were not far behind.
This greater use of EVs would also help Russia meet its Paris climate pact obligations to cut emissions to 70% of their 1990 levels by 2030.
Keyword: Russian Government Plans 25% EV Subsidy – But Only for Domestically Produced Models