Business

Russia to introduce new car scrappage scheme

  • 28 August 2014
  • From the section Business
Russian car showroom

Russia has said it will introduce a new scrappage scheme to try to boost flagging car sales.

The government has put aside 10bn roubles ($272m; £164m) to pay owners of cars that are at least six-years old an incentive to buy a new vehicle.

Car owners will be eligible for a discount of at least 40,000 roubles.

The government expects the scheme, which will run to the end of the year, to subsidise the sale of more than 170,000 vehicles.

The scheme could "seriously stimulate sales," said Prime Minister Dmitry Medvedev, according to local news agencies.

Car sales fell by almost a quarter in July compared with a year earlier, following a sharp fall in the previous month.

Russia, along with many other countries including the US, the UK, Germany and France, first introduced a car scrappage scheme during the global economic downturn.