The Association of European Businesses said on Tuesday that it raised its target to 1.8 million vehicles from a prior estimate of about 1.67 million. AEB members include automakers Ford Motor Co. and Volkswagen AG. Russian new car sales could grow more than predicted this year as the government’s rebate program stimulates demand.
AEB added that new car sales of light vehicles and passenger cars surged 62 percent in October from the same month in 2009 to 188,478. That thrust sales in the first 10 months to 1.5 million vehicles, or 22 percent more than the same period in 2009.
Partly owned by Renault SA, the state-run AvtoVAZ led the advance, with sales increasing 78 percent to 50,251 last month, giving it more than ¼ of the domestic market.
The Russian government sees a 4 percent growth of the economy in 2010.
Russia is recovering from the 7.9 percent contraction in 2009 as higher domestic consumption and commodities prices drive growth.
In March, the Russian government started giving vouchers worth 50,000 rubles ($1,631) to individuals who agree to exchange cars older than 10 years for new Russian-made vehicles. The government did this in an effort to help manufacturers affected by the steepest economic decline on record. [via autonews - sub. required]