Car sales in Russia dropped by 25 percent in August as the fallout from the Ukraine crisis exacted a heavy toll on the country's flagging economy, an industry group said on Monday. Sales dropped by 25.8 percent compared to the figure for the same month last year to just 172,000 vehicles on the back of a fall of almost 23 percent in July, said the Association of European Businesses.
Sales are down by over 12 percent for the year to date since January, the data showed. The fresh drop in sales comes after the government announced a cash-for-clunkers programme late in August aimed at jump-starting the stalled sector. "August was another difficult month for car sales, which hardly surprised anyone in the industry," Joerg Schreiber, chairman of the AEB Automobile Manufacturers Committee, said in a statement. "The recently announced government incentive for the scrappage and trade-in of vehicles raises hopes that the market slide can be stopped. Whether this will be the case or not depends on how quickly the program will come into effect," he added.