The Russian government plans to allocated RUB10 billion (EUR150 million) next year in a bid to extend an incentives program for new auto purchases, according to Industry and Trade Minister Denis Manturov. The Russian economy has taken toll from Western sanctions imposed over the Ukraine crisis as well as falling oil prices that has weakened the local currency.
This has led to higher inflation that has forced Russians to put off making large purchases. Manturov also said that the government has allocated another RUB2.9 billion for the program this year.
He quipped in August that Russia would allocated RUB10 billion to finance the incentives this year. Under the current program, those who scrap or trade their old vehicles could avail of at least RUB40,000 in discount when purchasing new passenger cars or at least RUB350,000 when buying commercial vehicles.
The scheme was intended to slow down a decline in vehicle sales in Russia. Car sales in the country dropped 10 percent in October – a slowdown from the 20-percent drop in September, according to data from the Association of European Businesses (AEB). For the first 10 months of 2014, Russian car sales fell 13 percent.