Russia’s car purchase incentive scheme could be extended into 2015

Article by Christian A., on October 27, 2014

The incentives that the Russian government is providing for new-vehicle purchases could go beyond 2014, according to the Industry and Trade Ministry citing industry minister Denis Manturov. The ministry, however, provided no details of possible additional funding of the scheme.

Russia has already allotted RUB10 billion ($244 million) to fund the trade-in program that will last until to the end of 2014, as part of an effort to support the auto industry as it tries to go through a current economic slump. In fact, the Russian auto market has seen vehicle sales falling.

Auto sales in Russia dropped 20 percent and 26 percent in August and September, respectively, according to the Association of European Businesses lobby group. Russia’s already slumping economy is suffering further from western sanctions over the current conflict in Ukraine as well as from consumer delaying making large purchases – all resulting to lower demand for vehicles.

Carmakers in Russia saw their sales fall 13 percent in the first nine months of 2014 to 1.78 million. Under the current trade-in scheme or scrappage program, buyers of new passenger cars could avail of at least RUB40,000 (752 euros) when scrapping or trading in their old vehicles.

According to the AEB, full-year sales in Russia will dive down 12 percent in 2014 to 2.45 million as the trade-in scheme help encourage consumers to buy vehicles.

Topics: russia, incentives

If you liked the article, share on:

Comments

Recommended

Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Earlier this week, Nissan revealed a teaser of the new 2018 LEAF’s interior, giving us an idea of what the electric vehicle has to offer. The company released a video...
by - June 25, 2017
The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries