Russia July car sales soar 48 pct, may slow-UPDATE 1
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Wednesday August 11, 2010 12:32:13 AM GMT
* AEB says July sales continue momentum after 2009 slump
* Sales up 9 percent for the first seven months of year
* Says Aug., Sept. could be slower due to holidays, heat
(Adds AEB comment, detail)
MOSCOW, Aug 9 (Reuters) - Russian car sales in July jumped 48 percent year-on-year as economic recovery and an extension of a scrappage scheme continued to support growth, although extreme heat could be taking its toll on buyers in the current market.
The Association of European Businesses (AEB) said on Monday 173,171 cars were sold in Russia last month, narrowly below 174,838 in June but way above the 117,264 sold in a crisis-hit July 2009.
Volkswagen vice-president and AEB member Martin Jahn said the figures were encouraging but warned against over-optimism for the remainder of the year.
"In August and September there may be some slowdown due to holidays on the majority of Russian factories as well as emergency weather conditions in several regions of central Russia," he said.
Russia is currently gripped by a severe heatwave and the worst drought in decades -- conditions likely to disrupt visits to car showrooms as well as high street shops.
The Russian car industry has been on the rise since a state sponsored scrappage scheme was put in place in March. Sales halved during 2009 as the economic crisis and a lack of access to credit sent shockwaves through the market, but are up 9 percent in the year to date. (Reporting by John Bowke; editing by Simon Jessop)
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