MOSCOW, Nov 28 (Reuters) – Russia’s government plans to spend around 5 billion roubles ($78.3 million) next year on new auto loan subsidies to support stagnating car sales, Russian news agencies reported.
New car sales in Russia are expected to fall 2.2% in 2019 to 1.76 million units, according to the Association of European Businesses lobby group, amid sluggish economic growth and falling disposable incomes.
Russia has been supporting demand for new cars through various programmes in recent years, which include compensating banks for lowering interest rates on auto loans.
Denis Manturov, the Industries and Trade Minister, said Russia still owed the banks under earlier lending support programmes, but gave no details, RIA and TASS reported.
$1 = 63.8345 roubles
Reporting by Gleb Stolyarov; writing by Maria Kiselyova;
Editing by Andrew Cawthorne