March 15, 2011 / 10:49 AM / 8 years ago

CORRECTED - Russia's car scrappage scheme to end in September

(Corrects to sales from production in first paragraph)

* No intention of extending state-sponsored programme

* Some 487,000 certificates issued vs 500,000 target

* Russian car sales seen at pre-crisis level in 2012

MOSCOW, March 15 (Reuters) - Russia has no plans to extend the car scrappage scheme beyond September, a Trade Ministry official said, having helped put the country back on course to matching pre-crisis sales levels in 2012. The scheme, which awards 50,000 roubles ($1,751) to drivers willing to trade in models more than ten years old, has done much to revive sales of locally produced cars, mainly AvtoVAZ’s AVAZ.MM Ladas, following its introduction in March of 2010.

Alexei Rakhmanov, head of the Trade Ministry’s car industry department, said on Tuesday the scheme was likely to continue until September when he expects all the 500,000 certificates to have been used for car purchases.

“There is no intention and no obligation to continue the scheme,” Rakhmanov told reporters on the sidelines of the Adam Smith’s Russia Automotive Forum.

He said some 487,000 certificates had been issued as of March 14 but part of them had yet to be used.

Russia was on target to overtake Germany as Europe’s biggest car market before the crisis, but sales halved in 2009 as consumer confidence collapsed and access to credit dried up.

The Association of European Businesses (AEB) expects Russian annual car sales to return to pre-crisis levels of 2.9 million units during 2012 thanks to the scrappage scheme and pent-up demand, it said last month. [ID:nLDE70C0UX]

“I imagine it will be finished soon as it is not needed. It would be like throwing money out of the window,” AEB’s Chief Executive Frank Schauff told Reuters on Tuesday. ($1=28.56 Roubles) (Reporting by John Bowker and Gleb Stolyarov; writing by Maria Kiselyova; Editing by Mike Nesbit)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below