Car sales in Russia

On the back of an economic recovery and government rebate program on used vehicles, new car sales in Russia zoomed by 80 percent in November, the highest in two years; said the Association of European Businesses on Wednesday.

Giving out the details in a statement, the association said that sales of automobiles and light trucks reached 189,902 for the month of November and total sales till date stood at 1.7 million, a growth of 28 percent over same period last year.

AEB’s automobile-manufacturers committee Chairman David Thomas said in an email statement that the number may reach to 1.9 million by the end of the year, which is “significantly beyond any previous forecasts”.

Russian government will spend at least 21.5 billion Rubles ($687 million) this year in a cash incentives program to revive the fortunes of car manufacturers. The country is following a global trend in boosting demand to take the industry out of a slump not witnessed since World War II.

“Clearly the scrappage scheme and improving credit availability have combined with increased consumer confidence to deliver growth across all segments and most brands”, Thomas added.

As the economy picks up pace, foreign manufacturers like Ford, Volkswagen and Toyota have started increasing productions and have lined up new models.

Domestic company AutoVAZ’s model Lada is the market leader followed by locally produced Ford Motor’s Focus and Renault’s Logan.