According to the Association of European Businesses (AEB), sales of new passenger cars in the Russian market in January-February 2010 declined 34% as against the same period of 2009.

This week, the Russian administration unveiled its edition of the popular US "Cash for Clunkers" program as part of attempts to increase car sales, which dropped 49% during the last year.

Mr. David Thomas, the chairman of the AEB Automobile Manufacturers Committee, said, "It is encouraging to see a further move in the right direction, 32 percent decline in February compared to a 37 percent decline in the much smaller month of January. However, the first months of 2009 were heavily distorted so it will only be once we have the full quarter-one figures that an accurate picture of the market and the impact of government measures can be gained."

The 32% year-on-year decline during the last month (Feb 2010) represented overall sales of 91,922 as compared to 73,940 in Jan 2010.

In Feb 2009, Russia witnessed sales of 134,871, with 118,024 units sold in January 2009.

Russian car sellers began issuing the "disposal premiums" Monday. The money is offered to those all set to have their 10-year-or-older car scrapped under the new plan, and purchase a new one from an Industry and Trade Ministry-compiled list of more than 60

Of the 10 best-selling cars, 9 were made in Russia, comprising the top-selling Lada Priora. Only the Renault Logan, at No. 3, and the Daewoo Nexia, at No. 9, boosted sales during Jan-Feb period of last year, by 31% and 13%, respectively.

Moreover, the government has reserved around $370 million for the programme, which may take some time to have an effect. The program runs until Nov 1 in 49 of Russia's 83 regions. (With Input from Agencies)