Russian car sales plunge despite government action

Despite subsidized car loans, Russia's new-car sales fell 41.5% in April in the worst performance for the month since 2009, an association reported.

Some 132,456 cars and commercial vehicles were sold during the month, a second month of weak sales, the automobile committee of the Association of European Businesses reports.

"With 132 thousand new vehicle registrations, total market sales in April mark a new low point in the AEB sales history over the past 10 years," Joerg Schreiber, chairman of the AEB's automobile manufacturer committee, in a statement. "Only in 2009 did we record a similarly weak but slightly better result for this month."

The AEB says the top 10 manufacturers are all Russian, not imported vehicles from Europe, Asia or the U.S. The ruble has grown in strength compared to dollar.

Unlike 2009, Schreiber says the government has taken "select countermeasures" to halt the slide. Bloomberg News says they include subsidizing car loans, allowing individuals to lease and extending rebates.

It also says General Motors, Ford and other major makers have announced temporary price cuts to try to spur demand.