UPDATE 1-Russian car sales down 56 pct y/y in June -AEB

* Ford, GM sales down by more than 50 percent in H1 2009

* Volkswagen, Peugeot sales down by 11, 6 percent in H1

(Adds details of car sales by make, background)

MOSCOW, July 8 (Reuters) - Russian car sales shrank 56
percent year-on-year in June, but the pace of contraction
moderated slightly from the 58 percent slump seen the previous
month, the Association of European Businesses said on Wednesday.

In the first half of 2009, sales of new cars fell 49 percent
as consumers tightened their belts in the face of job losses and
salary cuts during Russia's first recession in a decade. Banks'
unwillingness to give out loans has also weighed on sales.

The decline in Russian car sales contrasted with car sales
in fellow emerging market India, reported up for the fifth month
running on Wednesday, confirming India as one of the few growth
markets in the world. [ID:nBOM443073]

Ford Group (F.N), the biggest foreign make, saw its
first-half sales plummet 52 percent.

General Motors GMGMQ.PK sales dropped 54 percent over the
same period although Russians bought nearly 400 more luxury
vehicles built by its Hummer division, representing growth of
over 100 percent on the first six months of previous year.

Seven of the top selling models were locally built, although
manufacturers with production facilities in Russia did not buck
the trend of falling sales.

Volkswagen (VOWG.DE), which is considering expanding car
production at its Kaluga plant in Russia, saw an 11 percent drop
in the first half of 2009, although its cars showed a gain of
four percent in the first half despite falling van sales.

France's PSA Peugeot Citroen (PEUP.PA), which in June
announced a $730 million investment in a Russian plant with
Mitsubishi Motors Corp (7211.T), saw first-half sales fall by
six percent compared with a 67 percent drop for Mitsubishi.

In the first half of 2009 AvtoVAZ (AVAZ.MM), maker of the
Lada, sold 44 percent fewer vehicles than over the same period
in 2008 but still twice as many as any other make at 180,000
cars.
(Editing by Mike Nesbit)