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UPDATE 1-Russia pledges around $275 mln for auto purchase scheme

(Adds details, context)

MOSCOW, Aug 28 (Reuters) - The Russian government will earmark 10 billion roubles ($273 million) to fund incentives for new vehicle purchases this year, the industry minister said on Thursday, offering long-awaited relief for the crisis-hit auto market.

Car sales have tumbled in Russia this year as economic growth has slowed, causing people to put off large purchases. Consumer sentiment has come under further pressure because of Western sanctions over the crisis in Ukraine.

The scheme, which will begin on Monday and run through to the end of the year, is expected to subsidise the sale of more than 170,000 passenger and light commercial vehicles, buses and trucks, Industry Minister Denis Manturov told reporters.

"As to next year, everything will depend on how the situation develops in the market, with car production. The decision will be taken not earlier than mid-September next year," he said of the possible revival of the programme in 2015.

Under the scheme, buyers of new passenger cars will be eligible for a discount of at least 40,000 roubles when scrapping their old vehicles, while the discount for commercial vehicles will start at 350,000 roubles.

Consumers will also be able to trade in an old car - aged more than six years - and get discounts of 40,000 to 300,000 roubles towards a new one.

The downturn in Russia's car market gathered pace in July, with sales sliding 23 percent year-on-year after a 17 percent fall in the previous month, according to the Association of European Businesses (AEB).

AEB slashed its forecast for Russian car sales last month and said it expected a 12 percent drop this year to 2.45 million vehicles, having previously forecast a decline of just 1.6 percent. The data comprises sales of passenger cars and light commercial vehicles.

($1 = 36.6860 Russian rouble) (Reporting by Darya Korsunskaya; writing by Maria Kiselyova, editing by John Stonestreet)