In Russia, discussion has intensified around a new federal initiative labeled Affordable Car. The plan aims to deliver new, domestically produced vehicles to large families. A leading political group, Fair Russia – For Truth, together with Yana Lantratova, the first deputy chair of the State Duma Education Committee, sent a letter to Prime Minister Mikhail Mishustin outlining the proposal. News outlets cited this document as the basis for the remarks.
The letter highlights a challenging demographic situation in the country. From January to June this year, there was a notable natural decrease of about 272,500 people. The birth rate also declined by around 3 percent compared with the first half of 2022, with births totaling roughly 616,200. The authors argue that these figures place pressure on population growth and family welfare, urging policy action to support families and the future workforce.
They contend that measures supporting large families, including preferential vehicle purchases, could significantly influence demographic trends. The authors acknowledge that the current Family Car program has several shortcomings. Foremost among them is the size of the loan and the terms of interest, which strain household budgets and may limit accessibility for many families.
To address these concerns, the MPs propose launching a program called Affordable Car. This would be a long-term, preferential social car rental initiative aimed at large families, with the Ministry of Industry and Trade of the Russian Federation suggested as the operator of the program. The proposal envisions the creation of state automobile centers where products from the domestic automotive sector would be sold. Financially, the plan would cap the annual rental fee at no more than 5 percent of the vehicle’s original purchase price. Vehicle insurance and maintenance costs would be funded from the state budget. Additionally, families that rent a car continuously for six years or longer would be eligible to purchase the vehicle at a 50 percent discount off its initial cost, creating a meaningful path to ownership for long-term renters.
Earlier discussions included ideas to provide young families with one million rubles to buy cars. There have also been suggestions in the State Duma about a possible increase in maternity capital up to one million rubles in the future. These proposals reflect ongoing interest in using public policy to support family formation and child welfare in the country. Attribution: Public policy brief and parliamentary coverage cited by News.