Few people in Russia are not aware of sky-high prices for new cars, even for the most budget segment. Significant (if not the main) flaw for this is the protective customs duties and recycling costs. They are compulsorily paid by car importing companies.
Therefore, even the cheapest new foreign car in Russia costs at least twice as much as in the home market. For example, Jetta VA3 (analogue of VW Polo) from the conveyor of the Chinese production branch of Volkswagen is sent to the salon of a local dealer at a price of 600,000 rubles – in terms of our money. And in Russia the same car at retail is already worth about 1.6 million rubles.
And this despite the fact that his importing company does not “fatten” at all, leaving only 100,000-150,000 rubles “margin” for itself. The rest of the difference between “Chinese” and “Russian” prices, less about another 150,000 rubles in logistics costs, will be borne by the domestic treasury. Thus, Russian potential buyers do not queue for the “people’s car” from China. Expensive because. And at least 178,000 rubles in its “horse” price tag falls on the disposal fee. If it weren’t for him, you look and an additional buyer would have appeared for the model!
Recently, AVTOVAZ announced that the cost of its version of the Russian “affordable car” – LADA Vesta NG – starts at 1.24 million rubles. About 1.5 – 1.6 million rubles dealers will ask for the top versions of the model. However, if you scraped together the money for the most expensive LADA (almost 1.7 million), then you might not be able to resist looking at the Chinese Volkswagen for 1.6 million: you spit on patriotism and choose a foreign car , pays a ridiculous 100,000 rubles. Especially when it comes to buying a car on credit.
It seems that only this situation does not give rest to the “tops” of the Russian auto industry. They still fail to make a beautiful and reliable (at least like the same Jetta VA3) car for the same “Chinese” price. Comes in much more expensive. But they have at hand a wonderful “market tool” – the lobbying abilities of the current head of AvtoVAZ, the former Minister of Transport Maxim Sokolov.
By the way, at the meeting of the Ministry of Industry and Trade, he already spoke out in favor of a radical increase in the recycling fee for foreign auto competitors LADA Vesta NG – from the current 178,000 rubles to 300,000 rubles – by 70% against once. So that the Jetta VA3, and other “almost competitors” of the brainchild of AVTOVZ, have increased in price by another 122,000 rubles.
Such a price difference is likely to discourage poor Russian motorists from considering foreign cars as an alternative to the world-class LADA. Of course, in words, the rapid growth of scrap metal collections is explained solely by concern for the protection of the domestic car market. And not the profit of AvtoVAZ. Although in reality this is pure cunning. If Vesta NG’s Chinese competitors were already sold here at the same prices as in their homeland, then yes: AvtoVAZ didn’t stand a chance against them.
At the same time, protective customs duties closed out all its potential competitors in an excellent way. That is, an increase in salvage costs will not significantly change the situation in the car market in Russia. Only the prices of all new cars will skyrocket. Making them even less accessible to most Russians. Unfortunately. But on the other hand, AVTOVAZ will be more alive than all living because of this: it will continue to please us, if not with mass-produced cars, then at least with the very fact of its existence …
Few people in Russia are not aware of sky-high prices for new cars, even for the most budget segment. Significant (if not the main) flaw for this is the protective customs duties and recycling costs. They are compulsorily paid by car importing companies.
Therefore, even the cheapest new foreign car in Russia costs at least twice as much as in the home market. For example, Jetta VA3 (analogue of VW Polo) from the conveyor of the Chinese production branch of Volkswagen is sent to the salon of a local dealer at a price of 600,000 rubles – in terms of our money. And in Russia the same car at retail is already worth about 1.6 million rubles.
And this despite the fact that his importing company does not “fatten” at all, leaving only 100,000-150,000 rubles “margin” for itself. The rest of the difference between “Chinese” and “Russian” prices, less about another 150,000 rubles in logistics costs, will be borne by the domestic treasury. Thus, Russian potential buyers do not queue for the “people’s car” from China. Expensive because. And at least 178,000 rubles in its “horse” price tag falls on the disposal fee. If it weren’t for him, you look and an additional buyer would have appeared for the model!
Recently, AVTOVAZ announced that the cost of its version of the Russian “affordable car” – LADA Vesta NG – starts at 1.24 million rubles. About 1.5 – 1.6 million rubles dealers will ask for the top versions of the model. However, if you scraped together the money for the most expensive LADA (almost 1.7 million), then you might not be able to resist looking at the Chinese Volkswagen for 1.6 million: you spit on patriotism and choose a foreign car , pays a ridiculous 100,000 rubles. Especially when it comes to buying a car on credit.
It seems that only this situation does not give rest to the “tops” of the Russian auto industry. They still fail to make a beautiful and reliable (at least like the same Jetta VA3) car for the same “Chinese” price. Comes in much more expensive. But they have at hand a wonderful “market tool” – the lobbying abilities of the current head of AvtoVAZ, the former Minister of Transport Maxim Sokolov.
By the way, at the meeting of the Ministry of Industry and Trade, he already spoke out in favor of a radical increase in the recycling fee for foreign auto competitors LADA Vesta NG – from the current 178,000 rubles to 300,000 rubles – by 70% against once. So that the Jetta VA3, and other “almost competitors” of the brainchild of AVTOVZ, have increased in price by another 122,000 rubles.
Such a price difference is likely to discourage poor Russian motorists from considering foreign cars as an alternative to the world-class LADA. Of course, in words, the rapid growth of scrap metal collections is explained solely by concern for the protection of the domestic car market. And not the profit of AVTOVAZ. Although in reality this is pure cunning. If Vesta NG’s Chinese competitors were already sold here at the same prices as in their homeland, then yes: AvtoVAZ didn’t stand a chance against them.
At the same time, protective customs duties closed out all its potential competitors in an excellent way. That is, an increase in salvage costs will not significantly change the situation in the car market in Russia. Only the prices of all new cars will skyrocket. Making them even less accessible to most Russians. Unfortunately. But on the other hand, AVTOVAZ will be more alive than all living because of this: it will continue to please us, if not with mass-produced cars, then at least with the very fact of its existence …
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.