Russia Extends Sales Incentives to Help Auto Industry

The Kremlin will extend its long-running car scrappage program next year with 20 billion rubles ($277 million) in new funding to help bolster sales for Russia’s crumbling auto industry.

Trade Minister Denis Maturov tells the state’s Rossiya 24 television network that the government will continue the incentives, which began in 2013, at least through the first half of 2016.

The program was last extended in March. The scheme encourages consumers to scrap vehicles that are at least 10 years old and buy new ones. Recent incentives ranged from 40,000 rubles ($553) for cars to more than 350,000 rubles ($4,800) for commercial vehicles.

Deliveries of passenger cars and light commercial vehicles in Russia have plummeted from 2.94 million units in 2012 to 1.45 million through the first 11 months of 2015, according to the Moscow-based Assn. of European Businesses.