MOSCOW: The Russian government announced last week a cash-for-clunkers program that offers consumers an incentive of some $1,100 to jump-start stalled car sales.
“This could seriously stimulate sales,” Prime Minister Dmitry Medvedev said at a government meeting, according to Russian news agencies.
Consumers who trade in a car at least six-years-old will be able to receive around $1,100 towards the purchase of a new vehicle, officials said.
Commercial trucks would get more in the program that began September 1 and which is forecast to last until at least the end of the year.
“We hope to encourage the sale of more than 170,000 vehicles by the end of the year,” Industry Minister Denis Manturov said.
Russian car sales plunged by nearly 23 percent to fewer than 181,000 vehicles in July, according to the Association of European Businesses, which compiles data on the market. Sales are down by nearly a tenth for the year to date.