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Fraudsters: In pursuit of car sales growth, authorities are killing their car industry

  • June 28, 2023
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Despite the fact that the recovery of the auto industry is going fast and it is far from being the right way, senior officials of the state apparatus

Fraudsters: In pursuit of car sales growth, authorities are killing their car industry
Despite the fact that the recovery of the auto industry is going fast and it is far from being the right way, senior officials of the state apparatus assure in a black eye that life is getting better and more fun every day. Portal “AvtoVzglyad” was curious to what extent such an optimistic position is true.

For some reason, in Russia – first communist, then post-communist – an assertive statement is adopted for true patriotism, the meaning of which is that everyone in our country is hurt. Well, as a last resort, it will soon hurt – but this is starting to smell a bit renegade, so to speak. Bearing in mind this feature of the national mentality, our bureaucratic brethren try so diligently to convince us that we already live in a practically bright future, as if their lives depended on it.

What did Mr Deputy Minister mean?

For example, Deputy Minister of Industry and Commerce Albert Karimov said at the St. Petersburg International Economic Forum that the level of monthly vehicle sales is already surpassing pre-special operation figures in Ukraine. At least that’s what Vedomosti reports. Furthermore, the words of the Secretary of State are already quoted by TASS: “This is the task that we have articulated in the strategy approved by the government at the end of last year – the strategy for the development of the automotive industry – is that we supply so that our automotive industry can operate at full capacity. <…> We must reach and further increase the level of at least 60% in the passenger car market by 2025.”

Indeed, in December 2022, the Government of the Russian Federation approved the strategy for the development of the automotive industry, according to which the production of cars at domestic production sites will double in the next two to three years. The task of supplying the country with cars, and cars in the first place, was set by Vladimir Putin.

However, let’s return to Mr. Karimov’s words. I don’t know what kind of vehicles he had in mind, but as far as the cars mentioned by the president are concerned, not everything is so rosy. In the traditionally disastrous January 2022, 91,662 cars and light commercial vehicles were sold. According to the bureau “AUTOSTAT”, the registration volume of new cars in the same segments in May was 78,969 units.

The disgrace of a superpower

I’m not saying the market isn’t recovering. It’s growing and that’s obvious. But far from the revolutionary pace officials tell us about, and not in the direction they are taking. What do you mean I? Yes, everything about the same as usual. If we were Honduras (I don’t want to say anything bad about this beautiful country), we wouldn’t give a damn what exactly fills the working hours in our car factories – either with SKD assembly from foreign car kits or with the production of our own cars in a full cycle of parts manufactured right here, in their native land, using domestic technologies.

It is shameful for a country that claims to be one of the great powers to reduce the production process to a simple screwdriver assembly procedure under the strict supervision of a foreign uncle, who is the only specialist in the entire company who knows about technological secrets. Nevertheless, at the moment Russia is exactly in this position, not to say rudely – in this humiliating position.

In fact, only one company really represents the domestic brand – this is AVTOVAZ. But it accounts for 30.5% of the Russian market, which is significantly less than the 60% quoted in the strategy. Of course, there is also UAZ, but that’s so-so. He managed to win back a frivolous 1% and is even inferior to the defiantly runaway Volkswagen.

All for show

Does Albert Karimov believe that the Volzhsky plant will be able to remove this burden in one person and double its market share in the remaining two years – I remind you, after all, it is growing? It is unlikely that the Secretary of State is so naive. However, other Russian manufacturers do not really suffer from doubts and painful thoughts about the great Russian brand. Without a twinge of conscience, they put cars JAC, FAW, Dongfeng and the like on their knees. There is another white crow – the Haval plant, which also does not smell like a full cycle.

In other words, we have no indication that the leaders of the Ministry of Industry and Trade are concerned about the development of the Russian technological base, the establishment of the production of auto parts and ultimately the creation of a more or less sovereign industry. This means that the missing 30% market share in their view should be filled by Chinese cars assembled using SKD technology and hiding behind Russian names, with greater or lesser success. And you can put a check mark on completing the task.

Photo: globallookpress.com
Photo: globallookpress.com

For some reason, in Russia – first communist, then post-communist – an assertive statement is adopted for true patriotism, the meaning of which is that everyone in our country is hurt. Well, in extreme cases, it will hurt quickly – but it seems to start smelling a bit renegade. Taking into account this peculiarity of the national mentality, our bureaucratic brethren try so hard to convince us that we already live in a practically bright future, as if their lives depended on it.

What did Mr Deputy Minister mean?

For example, Deputy Minister of Industry and Commerce Albert Karimov said at the St. Petersburg International Economic Forum that the level of monthly vehicle sales is already surpassing pre-special operation figures in Ukraine. At least that’s what Vedomosti reports. Furthermore, the words of the Secretary of State are already quoted by TASS: “This is the task that we have articulated in the strategy approved by the government at the end of last year – the strategy for the development of the automotive industry – is that we supply so that our automotive industry can operate at full capacity. <…> We must reach and further increase the level of at least 60% in the passenger car market by 2025.”

Indeed, in December 2022, the Government of the Russian Federation approved the strategy for the development of the automotive industry, according to which the production of cars at domestic production sites will double in the next two to three years. The task of supplying the country with cars, and cars in the first place, was set by Vladimir Putin.

However, let’s return to Mr. Karimov’s words. I don’t know what kind of vehicles he had in mind, but as far as the cars mentioned by the president are concerned, not everything is so rosy. In the traditionally disastrous January 2022, 91,662 cars and light commercial vehicles were sold. According to the bureau “AUTOSTAT”, the registration volume of new cars in the same segments in May was 78,969 units.

The disgrace of a superpower

I’m not saying the market isn’t recovering. It’s growing and that’s obvious. But far from the revolutionary pace officials tell us about, and not in the direction they are taking. What do you mean I? Yes, everything about the same as usual. If we were Honduras (I don’t want to say anything bad about this beautiful country), we wouldn’t give a damn what exactly fills the working hours in our car factories – either with SKD assembly from foreign car kits or with the production of our own cars in a full cycle of parts manufactured right here, in their native land, using domestic technologies.

It is shameful for a country that claims to be one of the great powers to reduce the production process to a simple screwdriver assembly procedure under the strict supervision of a foreign uncle, who is the only specialist in the entire company who knows about technological secrets. Nevertheless, at the moment Russia is exactly in this position, not to say rudely – in this humiliating position.

In fact, only one company really represents the domestic brand – this is AVTOVAZ. But it accounts for 30.5% of the Russian market, which is significantly less than the 60% quoted in the strategy. Of course, there is also UAZ, but that’s so-so. He managed to win back a frivolous 1% and is even inferior to the defiantly runaway Volkswagen.

All for show

Does Albert Karimov believe that the Volzhsky plant will be able to remove this burden in one person and double its market share in the remaining two years – I remind you, after all, it is growing? It is unlikely that the Secretary of State is so naive. However, other Russian manufacturers do not really suffer from doubts and painful thoughts about the great Russian brand. Without a twinge of conscience, they put cars JAC, FAW, Dongfeng and the like on their knees. There is another white crow – the Haval plant, where it also does not smell like a full cycle.

In other words, we have no indication that the leaders of the Ministry of Industry and Trade are concerned about the development of the Russian technological base, the establishment of the production of auto parts and, ultimately, the creation of a more or less sovereign industry. This means that the missing 30% market share in their view should be filled by Chinese cars assembled using SKD technology and hiding, with greater or lesser success, behind Russian names. And you can put a check mark on completing the task.

Source: Avto Vzglyad

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