Russia’s car market overtakes Germany in August sales

Russia's car market overtakes Germany in August sales

Russia’s car market became the largest in Europe in August, overtaking Germany due to a fall in sales there, according to Russia’s analytical agency Autostat.

Car sales in Germany declined in August, casting doubt on the chances of a recovery in vehicle demand in the region. New-car registrations fell 5 percent year-on-year during the month to 214,100 passenger cars, industry association VDA said last week.

According to a press release on Autostat’s Web site, in August, Russia sold 235,000 to 240,000 vehicles, of which 13,000 to 15,000 were light commercial vehicles, such as delivery vans.

Analysts have long expected Russia’s car market to become the biggest in Europe but will be looking for evidence that it is sustainably larger than Germany’s.

EDIT: The Russian Government has been subsidizing car buyers, and obviously it helps sales.