The Association of European Businesses said Wednesday it expects growth in Russian new car sales to slow down dramatically next year.

AEB said it expects sales in 2012 to rise 12% to 2.8 million units.

Its 2011 AEB sales forecast, which it revised up slightly Wednesday, now stands at 2.55 million vehicles, up 34% from 2010.

New car sales in Russia rose 27% on year in October, AEB said. Sales totaled 240,865 vehicles, 51,349 more than a year earlier.

-By Nadia Popova, Dow Jones Newswires; +7 495 232-9198; nadia.popova@dowjones.com