Russia May Extend Sales Incentives

Russia's Industry and Trade Ministry says it may continue sales incentives for new cars and other vehicles into 2015 to bolster sagging demand.

Car sales in Russia are down 13% so far this year. But the decline has accelerated in the second half of 2014. Year-on-year shrinkage jumped to 17% in June, 23% in July, 26% in August and 20% in September, according to the Moscow-based Assn. of European Businesses.

Russia offered a state-funded scrappage program on 10-year-old cars in 2010-2011 and again last year. The current plan, which is set to expire at the end of December, offers discounts of 40,000 rubles (€750) on cars and as much as 350,000 rubles (€6,600) on commercial vehicles.

Russia has estimated that its incentives generated a combined 770,000 sales over the past four years.