Russian dealers have sold some 7,000 cars as part of a new car scrapping program since it was launched a week ago, an Industry and Trade Ministry official said Tuesday.
Following the example of many Western countries, Russia launched a program on March 8 offering 50,000 rubles ($1,680) for the recycling of old vehicles in a bid to support Russia's ailing car industry.
"Last week some 7,000 were sold in line with this program," Alexei Rakhmanov, the head of the ministry's automotive industry department, said, adding that most applications (54%) were for Russian-made Lada cars.
The disposal program's money is provided to those ready to have their 10-year-or-older car scrapped and buy a new one from an Industry and Trade Ministry-compiled list of over 60 Russian and foreign car brands produced in Russia.
However, Industry and Trade Minister Viktor Khristenko earlier said the weak point of the plan, that could theoretically expand to Russia's estimated 14 million 10-year-or-older cars, is the lack of a developed car scrapping infrastructure, with a mere 153 disposal stations having so far been licensed.
The scrapping experiment will take place in 49 Russian regions out of more than 80 and will last until November 1, 2010. Khristenko also said a smoothly functioning scrapping program should be ready by September.
The government has allocated some 10 billion rubles ($370 mln) to the program and predicts that some 200,000 new cars, mainly domestically produced Ladas, Chevrolets and Opels, will be sold in 2010 by more than 1,500 authorized dealers in line with the program.
MOSCOW, March 16 (RIA Novosti)
