A few days ago, the Russian Minister of Industry announced that the government will allocate 10 billion rubles (about 207 million euros) to launch car incentives to stimulate the recent sluggish car sales.
Russian Industry Minister Denis Manturov said that the car incentives will be implemented from September 1 and will continue until the end of the year, which is expected to benefit 170,000 passenger cars and light commercial vehicles.
According to the above incentive policy, local Russian consumers can enjoy a subsidy of at least 40,000 rubles (about 825 euros) after purchasing old cars, while subsidies for light commercial vehicles are as high as 350,000 rubles.
Russiaâ€™s last launch of the old car scrap incentives was in 2010, and as the Russian economy grew at a slower pace, the countryâ€™s auto market also suffered a continuous decline. The sanctions imposed by the Ukrainian crisis in Europe and the United States further aggravated the deterioration of the auto market.
According to the European Chamber of Commerce AEB, in the first seven months of this year, Russian car sales fell 10% year-on-year to 1.4 million units. The association also raised Russia's sales forecast for this year from the previous 1.6% to 12%.
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