TU-TESL

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According to foreign media such as Russia News Agency, the government plans to invest about 5 billion rubles (US $78.3 million) in new car loans next year to support stagnant car sales. In fact, Russia has been supporting new car demand through a variety of projects in recent years, including compensating banks to reduce car lending rates. Denis manturov, Russia's minister of industry and trade, said Russia still owes some of the banks' previous loan support plans, but gave no details. According to the association of European businesses, new car sales in Russia are expected to drop 2.2% to 1.76 million vehicles this year due to sluggish economic growth and falling disposable income. In fact, LROs's car sales in October fell 5.2% to 152000, while in the first 10 months, new car sales in the country fell 2.4% year-on-year to 1.42 million. In a recent statement, Joerg Schreiber, chairman of the Council of automobile manufacturers of the European Business Association, said that Russia's sales results in October kept the automobile market on the path of slow growth and continuous decline in 2017 and 2018. In addition, if China raises part of the tax fees again, it may inhibit the demand for new cars in the Russian market. The purpose of this tax is to be able to include recovery costs at the end of the vehicle's useful life. In fact, as early as September when the national sales data was released, the European Business Association lowered its sales forecast for Russia this year, which will be 2.2% lower than that of 2018, and the cumulative sales are estimated to be around 1.76 million. However, considering that Russia only sold 1.271 million new cars in the first three quarters, and there is still a distance of nearly 500000 cars from the target of 1.76 million cars, it is estimated that in the last three months, such a volume can only be achieved by maintaining a monthly growth rate of more than 5%. Now it seems that the probability of reaching the goal is still small.