April 30, 2025
Auto

“Musical break”: how the march of “Wagner” in Moscow will affect the Russian car market

  • June 26, 2023
  • 0

As the country moves away from what happened last Saturday, smart people are already thinking about how this state of emergency will affect the domestic car trade. Indeed,

As the country moves away from what happened last Saturday, smart people are already thinking about how this state of emergency will affect the domestic car trade. Indeed, it is naive to believe that nothing will change. Nothing good awaits the average buyer.

Fortunately, there were no full-fledged “confrontations” between the soldiers last Saturday. However, the economic “wave” of what happened has already begun. More or less on the surface, such a “peasant” of the Wagnerian forced march lies, like a new depreciation of the Russian ruble.

It has been lightly supported by the so-called tax period in recent days. This is when exporting companies are forced to sell the currency earned in a month to pay taxes in rubles. And at that time there was a “black” Saturday, which brought down the ruble. Thanks to the “period”, it is now somehow holding on to levels slightly higher than Saturday’s lows. But this obviously won’t last long: at the end of the month, payments to the treasury will be completed and rates will rise.

The further slide of the “wooden” below the current 85 per dollar and about 12 per yuan means you understand what: an active adjustment of price tags in car dealerships. Prices may creep up in the near future. Despite the fact that imported cars, which are now sold in Russia, were imported with a much stronger national currency than it is today. But “business as usual” as they say…

This is unpleasant, but the situation in the Russian market will not fundamentally change. After all, the truly huge demand for affordable cars among most potential buyers of cars of the VW Polo or Hyundai Solaris class is below the price level of 1 million rubles.

At the same time, the level of comfort and equipment of LADA Granta for its current price clearly does not suit them. And most of the “budget Chinese” on the market today are offered at price tags above 2 million rubles. They are actually inaccessible to the masses of poor buyers and are of little interest to relatively wealthy citizens. Due to the further “drawing” of the ruble, the cheapest Chinese cars in Russia will become even more inaccessible to the poor, nothing more.

Recently, some car market experts have increasingly begun to talk that, they say, more and more Chinese brands and models will be located in Russia over time. This will increase competition, lower prices and increase the availability of cars for the mass consumer. Now the opponents of this point of view have another ironclad argument: what sane investor will decide to invest in any Russian production, if at any time another field commander in our country can “swell up” and get to Moscow in a few days almost unhindered to ride ?

This time everything worked out with little blood: the aviation of the RF armed forces burned several Wagner cars on the M4 highway, and they shot down several helicopters and an airplane in response. And if the insurgent column reached the goal? How can you talk about investments, localization, ‘affordable cars’ and the like under such circumstances?

globallookpress.com’s photo

Fortunately, there were no full-fledged “confrontations” between the soldiers last Saturday. However, the economic “wave” of what happened has already begun. More or less on the surface, such a “peasant” of the Wagnerian forced march lies, like a new depreciation of the Russian ruble.

It has been lightly supported by the so-called tax period in recent days. This is when exporting companies are forced to sell the currency earned in a month to pay taxes in rubles. And at that time there was a “black” Saturday, which brought down the ruble. Thanks to the “period”, it is now somehow holding on to levels slightly higher than Saturday’s lows. But this obviously won’t last long: at the end of the month, payments to the treasury will be completed and rates will rise.

The further slide of the “wooden” below the current 85 per dollar and about 12 per yuan means you understand what: an active adjustment of price tags in car dealerships. Prices may creep up in the near future. Despite the fact that imported cars, which are now sold in Russia, were imported with a much stronger national currency than it is today. But “business as usual” as they say…

This is unpleasant, but the situation in the Russian market will not fundamentally change. After all, the truly huge demand for affordable cars among most potential buyers of cars of the VW Polo or Hyundai Solaris class is below the price level of 1 million rubles.

At the same time, the level of comfort and equipment of LADA Granta for its current price clearly does not suit them. And most of the “budget Chinese” currently on the market are offered at price tags above 2 million rubles. They are actually inaccessible to the masses of poor buyers and are of little interest to relatively wealthy citizens. Due to the further “drawing” of the ruble, the cheapest Chinese cars in Russia will become even more inaccessible to the poor, nothing more.

Recently, some car market experts have increasingly begun to talk that, they say, more and more Chinese brands and models will be located in Russia over time. This will increase competition, lower prices and increase the availability of cars for the mass consumer. Now the opponents of this point of view have another ironclad argument: what sane investor will decide to invest in any Russian production, if at some point another field commander can “bloat up” and drive almost unhindered for a few days to Moscow?

This time everything worked out with little blood: the aviation of the RF armed forces burned several Wagner cars on the M4 highway, and they shot down several helicopters and an airplane in response. And if the insurgent column reached the goal? How can you talk about investments, localization, ‘affordable cars’ and the like under such circumstances?

Source: Avto Vzglyad

Leave a Reply

Your email address will not be published. Required fields are marked *

Exit mobile version