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.

If you liked the article, share on:

Topics: russia, incentives

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 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