The Ministry of Industry and Trade is discussing reducing subsidies for electric vehicle and hybrid purchases under favorable auto loan programs from the current 35% to 10%. The initiative came from manufacturer Evolute and could affect all brands whose models fail to score 2500 points under the new localization assessment system. Currently, maximum government support stands at 925 thousand rubles; after the changes, the basic subsidy will not exceed 500 thousand.
How government support conditions for electric vehicles will change
Under current rules, the state subsidizes up to 35% of the cost of a Russian electric vehicle or hybrid when purchased on credit or lease. For 2026, the budget allocates 20 billion rubles for favorable auto loans and 30 billion for leasing. The new scheme being considered by the Ministry of Industry and Trade will preserve the maximum 35% discount only for highly localized models.
Starting in 2026, updated localization requirements take effect: a model must either score a minimum of 1100 points under the production assessment system or be produced under a special investment contract. Points are awarded for specific operations — 400 points for body welding, 500 for painting, 400 for engine production in Russia. Maintaining full subsidies will require 2500 points, and so far no Russian electric vehicle meets this criterion.
Large discounts quickly exhaust subsidy program limits. Reducing the subsidy amount will make it available to more buyers.
Why manufacturers are asking to cut subsidies
Managing partner of Evolute, Andrey Reznikov, explained the initiative by noting that high subsidies quickly deplete the program budget. Reducing the discount size will allow coverage of more buyers throughout the year. Auto industry representatives also point to the need for fund redistribution under budget constraints.
Founder of UMO EVM, Ilya Rashkin, proposes a differentiated approach to hybrids and pure electric vehicles. Hybrids run on electric power for only 11–20% of their journey, meaning the subsidy effectively pays for gasoline mileage. For electric vehicles, government support is important to maintain — new production facilities are launching under the current program in 2026.
Electric vehicle sales dynamics in Russia
According to Autostat, plug-in hybrid sales grew 2.3 times in the first half of 2026, reaching 30.7 thousand units. Pure electric vehicles showed modest 5% growth — to 4.6 thousand vehicles. Market leaders in EV sales were Evolute, UMO, Avatr, Geely, and Zeekr. In the hybrid segment, top positions were taken by Voyah, Geely, Evolute, GAC, and Lixiang.
The difference in dynamics is explained by subsidy amounts and price accessibility of hybrids. Models produced under special investment contracts will only be able to participate in the program under basic conditions after changes — with a 10% discount and a limit of 500 thousand rubles instead of 925 thousand.
What subsidy cuts mean for brand promotion
Reduced government support will reshape the positioning of electric vehicles and hybrids in the Russian market. Brands will face the need to revise media plans and communication strategies: the focus will shift from price accessibility to technological advantages and operational savings. Manufacturers will need to work more actively with thought leaders in the automotive field, build long-term integrations with bloggers who can explain to audiences the real benefits of owning electric vehicles. When planning campaigns, the ETC team takes into account changes in market conditions and helps brands find relevant brand ambassadors whose reach and audience trust compensate for reduced direct financial incentives.
Frequently asked questions
When will the new EV subsidy rules take effect?
The exact date has not yet been determined. The Ministry of Industry and Trade has notified leasing companies of possible changes, but officially the program continues to operate under previous conditions with subsidies up to 35% of vehicle cost.
Which electric vehicles will be eligible for the maximum 35% discount?
Maximum subsidies will be retained only by models scoring 2500 points or more under the localization assessment system. According to expert estimates, no Russian electric vehicle or hybrid currently meets this requirement.
How much does an EV subsidy cost now?
In 2026, the state subsidizes up to 35% of the cost when purchasing a Russian electric vehicle or hybrid on credit or lease, with a maximum amount of 925 thousand rubles. After the changes, the basic discount will be 10%, but not more than 500 thousand rubles.
In brief
- The Ministry of Industry and Trade is discussing reducing EV subsidies from 35% to 10% at the initiative of manufacturer Evolute
- The maximum 35% discount will only be retained for models with 2500-point localization — currently no brand meets this requirement
- Hybrid sales in the first half of 2026 grew 2.3 times to 30.7 thousand, electric vehicle sales grew 5% to 4.6 thousand
- The basic subsidy after changes will be 10% and no more than 500 thousand rubles versus the current 925 thousand
- Electric vehicle manufacturers will need to revise their promotion strategy with emphasis on technological advantages instead of price accessibility
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