MOSCOW -- Russia's government plans to spend about 5 billion rubles ($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 percent this year 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 programs in recent years, which include compensating banks for lowering interest rates on auto loans.
Denis Manturov, the country's industries and trade minister, said Russia still owed the banks under earlier lending support programs, but gave no details, RIA and TASS reported.
Last month Russian sales fell 5.2 percent to 152,057 and were down 2.4 percent to 1.42 million through 10 months.