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

Is there anything more exciting than a spoiler? Well, for those who didn't know, there are those who have already seen the Mercedes-AMG Project One (in the flesh) way before...
by - April 25, 2017
Does the Honda Passport ring a bell to you? This was the first ever SUV that was sold by the Japanese automaker, but it was not that successful compared with...
by - April 25, 2017
Wagon buyers who prefer their vehicle to be luxurious, you will have an entirely brand new selection at the latter part of this year. Porsche will start rolling out 4...
by - April 25, 2017
McLaren rejects the idea of creating anything other than a sports car. That means that vehicles that would be ideal for families such as an SUV or a crossover are...
by - April 25, 2017
The new and improved Opel Grandland X is out, and this large SUV is something the European market did not know they would need. Now measuring at 14.7 feet (4.48...
by - April 25, 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