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The plot with the sudden decision of the government of Russia to increase the recycling fee for cars imported into the domestic market is gradually gaining momentum. It
A week ago, the government passed a resolution that would increase the so-called recycling fee to the treasury when importing almost any car into Russia. An exception is made only in the event that a person independently imports a vehicle for personal use, not more than one car per year. With all other options, from August 1, the “scrap” for cars will increase 1.7-3.7 times, and for light “commtrans” 2.5-3.4 times. At the same time, officials fully complied with AvtoVAZ’s demand, publicly announced by management about a month and a half ago: to increase the scrap fee for competing foreign cars LADA from the current 178,000 rubles to 300,000 rubles.
The car dealers were the first to sound the alarm. Their association (ROAD) predicts that after an increase in the disposal fee, any foreign car will increase in price by at least 120,000 rubles. That means a contraction of at least 30 percent in the already meager Russian car market. Translated from economic to Russian, this means that 30% fewer Russians can afford to buy a new car.
The price of the most affordable Chinese models now revolves around 2 million rubles. The only more or less decent car of Russian manufacture is the LADA Vesta NG. With a factory recommended price of 1.2 million rubles for a rather scantly equipped car (against the background of Chinese competitors), about 1.5 million rubles are demanded in the showrooms of brand dealers.
Moreover, representatives of AVTOVAZ have already announced a price increase for their products – once the recent collapse of the ruble took place. This only means that the cost of Togliatti cars will also be close to two million.
But then the authorities got involved and, by increasing recycling fees, artificially protected the “competitiveness” of LADA products. Which, as you know, has been protected for ten years and so vigorously by protective customs duties. Indeed, in addition to salvage costs, to import a car into the Russian Federation, you will have to pay about half the cost at customs! But even such a handicap, it turns out, does not save the Russian auto industry from malicious, evil Chinese competitors …
But this time, the authorities clearly went too far with his protection. In addition to car dealers, citizens also realized it. And they began to write petitions to the government of the Russian Federation on all available resources on the Internet. After all, many of them are waiting for the arrival of cars ordered abroad after August 1, when the decision on the new salvage contribution will come into effect. They ordered their future vehicles under conditions where the salvage fee for private individuals did not exceed several thousand rubles, and by the time the vehicles arrive in Russia, this payment will already amount to several hundred thousand rubles. As they say: surprise!
And in the Far East it will be completely “fun” after August 1: after all, almost all cars there are imported “right-hand drive”. The products of AVTOVAZ and a few Russian companies that screw wheels onto Chinese car kits do not get there at all. So the Transbaikalia car market is facing major problems. The deputies also felt the painful consequences of the lobby decision for the disposal fee.
– The increase in the recycling fee from August 1 is an almost deadly hook for the car industry and parallel imports of foreign cars in the Far East. Experts predict an increase in the price of foreign cars by almost a third and strongly recommend shifting the conditions for increasing the scrappage premium by at least 1.5 years. This is especially important for remote regions where there are no domestic car manufacturing or recycling centers. In this regard, I appealed to the Government of the Russian Federation with a proposal to postpone the increase in payment for the removal of the vehicle, ”said Yaroslav Nilov, head of the State Duma Committee on Labor and Social Policy .
In general, it is noticeable that the audience is tense. But it’s unlikely to affect anything in the end. Because in these kinds of confrontations, the side that has more chances to call “who needs it” always wins. Millions of motorists do not. And the mates of the domestic auto industry have.
A week ago, the government passed a resolution that would increase the so-called recycling fee to the treasury when importing almost any car into Russia. An exception is made only in the event that a person independently imports a vehicle for personal use, not more than one car per year. With all other options, from August 1, the “scrap” for cars will increase 1.7-3.7 times, and for light “commtrans” 2.5-3.4 times. At the same time, officials fully complied with AvtoVAZ’s demand, publicly announced by management about a month and a half ago: to increase the scrap fee for competing foreign cars LADA from the current 178,000 rubles to 300,000 rubles.
The car dealers were the first to sound the alarm. Their association (ROAD) predicts that after an increase in the disposal fee, any foreign car will increase in price by at least 120,000 rubles. That means a contraction of at least 30 percent in the already meager Russian car market. Translated from economic to Russian, this means that 30% fewer Russians can afford to buy a new car.
The price of the most affordable Chinese models now revolves around 2 million rubles. The only more or less decent car of Russian manufacture is the LADA Vesta NG. With a factory recommended price of 1.2 million rubles for a rather scantly equipped car (against the background of Chinese competitors), about 1.5 million rubles are demanded in the showrooms of brand dealers.
Moreover, representatives of AVTOVAZ have already announced a price increase for their products – once the recent collapse of the ruble took place. This only means that the cost of Togliatti cars will also be close to two million.
But then the authorities got involved and, by increasing recycling fees, artificially protected the “competitiveness” of LADA products. Which, as you know, has been protected for ten years and so vigorously by protective customs duties. Indeed, in addition to salvage costs, to import a car into the Russian Federation, you will have to pay about half the cost at customs! But even such a handicap, it turns out, does not save the Russian auto industry from malicious, evil Chinese competitors …
But this time, the authorities clearly went too far with his protection. In addition to car dealers, citizens also realized it. And they began to write petitions to the government of the Russian Federation on all available resources on the Internet. After all, many of them are waiting for the arrival of cars ordered abroad after August 1, when the decision on the new salvage contribution will come into effect. They ordered their future vehicles under conditions where the salvage fee for private individuals did not exceed several thousand rubles, and by the time the vehicles arrive in Russia, this payment will already amount to several hundred thousand rubles. As they say: surprise!
And in the Far East it will be completely “fun” after August 1: after all, almost all cars there are imported “right-hand drive”. The products of AVTOVAZ and a few Russian companies that screw wheels onto Chinese car kits do not get there at all. So the Transbaikalia car market is facing major problems. The deputies also felt the painful consequences of the lobby decision for the disposal fee.
– The increase in the recycling fee from August 1 is an almost deadly hook for the car industry and parallel imports of foreign cars in the Far East. Experts predict an increase in the price of foreign cars by almost a third and strongly recommend shifting the conditions for increasing the scrappage premium by at least 1.5 years. This is especially important for remote regions where there are no domestic car manufacturing or recycling centers. In this regard, I appealed to the Government of the Russian Federation with a proposal to postpone the increase in payment for the removal of the vehicle, ”said Yaroslav Nilov, head of the State Duma Committee on Labor and Social Policy .
In general, it is noticeable that the audience is tense. But it’s unlikely to affect anything in the end. Because in these kinds of confrontations, the side that has more chances to call “who needs it” always wins. Millions of motorists do not. And the mates of the domestic auto industry have.
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.
