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Russian car market increases by 62% in October

10 November 2010 09:21 (UTC +04:00)

Baku â€“ APA-Economics. Russiaâ€™s car market is climbing steadily out of a deep trough in sales, thanks to cheaper credit, a recovering economy and a scrappage scheme fuelling demand for cheap, basic models, Financial Times reported.

Vehicle sales rose by 62 per cent in October on the year to more than 188,000, the Association of European Businesses, which represents Russia-based carmakers, said on Tuesday.

This was their highest monthly rise this year. Year-to-date the market is up 22 per cent on 2009.

Russiaâ€™s â€œcash-for-bangersâ€ scheme applies to Russian-built cars more than 10 years old. The Rbs50,000 incentive ($1,630) shaves about 10 per cent off the price of a typical western car, but offers the biggest proportional discount on basic, locally-built cars such as the Lada â€“ made by Renaultâ€™s Russian affiliate Avtovaz â€“ whose cheapest model starts at about Rbs180,000.

Nine of the countryâ€™s 10 best-selling models were Russian-produced, said the AEB.