Despite the mighty breakthrough and wealth of the friendly Chinese auto industry, the Russian new car market is still scarce. On the one hand, this benefits dealers who raise prices and make a lot of money on each car. On the other hand, this cannot go on for long as the constant deficit support will simply destroy the dealership industry.
After all, money is not so much in sales as in maintenance: spare parts and repairs cost many times more, and if there are no new cars, then there is no one to serve. Therefore, the vise of greed will gradually loosen. However, there is another reason that holds back the influx of new cars to Russia. This has never happened before, and here again – logistics.
According to wheeled vehicle distributors, import to Russia is possible through two “bottlenecks”: the ports of the Far East and St. Petersburg. Of course, they are tightly packed, there is not enough capacity. And domestic car production is just starting to gain momentum – pah-pah-pah, knock-knock-knock on the tree.
So the only way to increase import and export flows is to expand existing transport arteries and build new ones. No wonder Vladimir Putin spends so much time on the North-South Corridor. However, the opening of a new transport route is still a long way off. However, there is also good news.
Imports from China, including car imports, will grow and accelerate strongly in 2023: the first car transporters crossed the international bridge over the Amur. Having received a new transport connection with the Celestial Empire, the Russian market will be saturated with various goods more quickly, logistics costs will decrease – competition will lead to discounts – and most importantly, the waiting time will be drastically reduced. The main problem now is port queues, which often delay goods by up to two or three months. The new bridge solves this problem. Not quite, but noticeable.
Naturally, it takes time to coordinate the supply chains, taking into account the new introduction, the signing of various agreements and the compilation of routes. But in the end, this will give a noticeable amount of goods to the whole market, which will primarily affect the price – the demand will be met, the right to choose will pass from the seller to the buyer. And this is really very good news.
Despite the mighty breakthrough and wealth of the friendly Chinese auto industry, the Russian new car market is still scarce. On the one hand, this benefits dealers who raise prices and make a lot of money on each car. On the other hand, this cannot go on for long as the constant deficit support will simply destroy the dealership industry.
After all, money is not so much in sales as in maintenance: spare parts and repairs bring many times more, and if there are no new cars, then there is no one to serve. Therefore, the vise of greed will gradually loosen. However, there is another reason that holds back the influx of new cars to Russia. This has never happened before, and here again – logistics.
According to wheeled vehicle distributors, import to Russia is possible through two “bottlenecks”: the ports of the Far East and St. Petersburg. Of course, they are tightly packed, there is not enough capacity. And domestic car production is just starting to gain momentum – pah-pah-pah, knock-knock-knock on the tree.
So the only way to increase import and export flows is to expand existing transport arteries and build new ones. No wonder Vladimir Putin spends so much time on the North-South Corridor. However, the opening of a new transport route is still a long way off. However, there is also good news.
Imports from China, including car imports, will grow and accelerate strongly in 2023: the first car transporters crossed the international bridge over the Amur. Having received a new transport connection with the Celestial Empire, the Russian market will be saturated with various goods more quickly, logistics costs will decrease – competition will lead to discounts – and most importantly, the waiting time will be drastically reduced. The main problem now is port queues, which often delay goods by up to two or three months. The new bridge solves this problem. Not quite, but noticeable.
Naturally, it takes time to coordinate the supply chains, taking into account the new introduction, the signing of various agreements and the compilation of routes. But in the end, this will give a noticeable amount of goods to the whole market, which will primarily affect the price – the demand will be met, the right to choose will pass from the seller to the buyer. And this is really very good news.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.