Russian New Car Sales Surged 51% in August on Cash-for-Clunkers Program

Russian new car sales jumped 51 percent last month from the same period last month as consumers took advantage of the government’s cash-for-clunkers program.

Sales of automobiles and light trucks reached 168,627 in August, pushing the year-to-date total to 1.14 million, or 14 percent more than at the same period last year, the Association of European Businesses in Moscow said.

The government is spending at least 21.5 billion rubles ($697 million) this year on cash incentives for automobile purchases. Russia is following countries around the world that extended incentive programs to reverse slumps in car sales during the worst global slowdown since World War II.

“There were some concerns that the smog in Moscow might affect the industry but other than low showroom traffic during what is anyway a quiet month, we have not yet seen evidence of this,” said David Thomas, chairman of the AEB’s automobile- manufacturers committee, in an e-mailed statement.

The four best-selling models through August are all Ladas, made by OAO AvtoVAZ, Russia’s largest automaker, followed by Renault SA’s Logan and Ford Motor Co.’s Focus, which are assembled in Russia to avoid import tariffs.

To contact the reporter on this story: Anastasia Ustinova in St. Petersburg at austinova@bloomberg.net.

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