AvtoVAZ has said that its first half sales rose 22.7% on the year to 220,800 vehicles.

In June, AvtoVAZ sold 51,200 vehicles, up 77.4% on the same month last year.

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The firm is benefiting this year from a Russian scrappage scheme that favours locally made products.

Under the program, which started operating in March, owners of cars produced before 2000 can receive bonuses worth 50,000 roubles to buy new Russian-made cars in exchange for cars for scrappage.

JD Power Automotive Forecasting predicts that the Russian car market will reach 1.59m units this year – around 17% up on last year – as result of the scrappage scheme boost and a gradually improving economic environment.

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