Russians bought 134,912 new cars in February, 38% less than a year earlier, according to monthly data released Thursday by the Association of European Businesses.

Drastically dropping sales in the first two months of the year -January sales were down 33% on the year -comes on the back of increased customs tariffs, high loan interest rates and ruble devaluation, the association said.

As Europe's mature markets slowed down last year, international car makers had pinned their hopes on Russia's growing consumer base.

Last month, the association, whose members include the heads of international car makers in Moscow, cut its 2009 forecast for new car sales in the country to 1.9 million from 2.4 million.

The association said that among the top ten best-selling passenger cars so far this year, eight were produced in Russia.

Volkswagen AG (VOW.XE) and PSA Peugeot-Citroen (12150.FR) were the only major carmakers to record an increase in sales. Both companies have recently opened plants in Russia, enabling them to avoid heavy duties on imported cars.

Below is a break down of sales by group:

                       Feb 09      Feb 08    Change 
   AvtoVAZ             29,344      46,197      -36% 
   General Motors      10,870      21,755      -50% 
   Ford                10,497      13,942      -25% 
   Hyundai              7,669      16,743      -54% 
   Nissan               7,364      13,102      -44% 
   Toyota               6,522      11,377      -43% 
   Volkswagen           3,987       2,608      +53%

Company Web site: www.aebrus.ru

-By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 937 8445; jacob.pedersen@dowjones.com