Why Chinese cars should increase in price by the end of the year
- July 14, 2023
- 0
The reorientation to China, which has taken place in the Russian car market, will play its first cruel joke on us much sooner than many can imagine. And
The reorientation to China, which has taken place in the Russian car market, will play its first cruel joke on us much sooner than many can imagine. And not because of anyone’s ill will, but purely for economic reasons.
In fact, everything sad is simple. To begin with, China is the factory of the world. When the local authorities, due to massive riots of the population, tired of being in the coronavirus ghetto for years, lifted the covid lockdowns, the whole world rubbed their hands with anticipation: now the Chinese are going to make money, how will they relax, how they will go up and forward! After all, in a few decades, everyone has learned: the growth of the Chinese economy at 1% gives countries “tied” to it at least 0.3% of GDP.
But we have not waited for the next “Chinese miracle”. For example, accustomed to sitting at home for a few years, the citizens of the Celestial Empire are in no hurry to buy new cars as before. As a result, prices have been falling for five months in a row. They are also not as attracted to new apartments. And overall their consumption growth has clearly stalled there. The economy is booming.
The consequences of the NWO and the farmer from the monetary policy of Western countries in the time of that same COVID-19 add their own catch. One of China’s most important markets, the European Union, is steadily sliding into recession and its economy is collapsing – devoid of cheap Russian raw materials and energy resources. In the US, a similar process is likely to materialize in the fall of 2023. And in general, the US market (even the consumer goods market, not to mention high-tech goods) is steadily being closed to the PRC. After all, the United States has long sensed in Asians a threat to its economic dominance in the world and consistently squeezes them out of the house.
Over the past five years, exports from China to North American markets have declined in volume for various product groups from 12% to 40%. And recently, in connection with Taiwanese affairs, this process has only accelerated. What does all this mean for the Chinese macro economy and for the Russian car market? Elementary: Our neighbors’ industry consumes less and less raw materials and raw materials. Meanwhile, we export huge quantities of this good there – about 35% of domestic exports now go to China.
And in the near future, it is likely to reduce the consumption of our natural resources, or force domestic importers to lower their already not very high prices. This will reduce the amount of yuan flowing to us from China. And our purchases of their goods are unlikely. As a result, the exchange rate of the yuan against the ruble will inevitably rise. And certainly a lot. Which entails an inevitable increase in the ruble value of cars imported to us from China. This process will be imposed by a multifold increase in salvage costs for vehicles imported into Russia.
As a result, all these securities will reach the retail car market in Russia sometime in the October-December period of the current year and rewrite the price tags in car dealerships. And all we have to do is say with a sigh, “Well, we warned you!”
globallookpress.com’s photo
In fact, everything sad is simple. To begin with, China is the factory of the world. When the local authorities, due to massive riots of the population, fed up with the coronavirus ghetto for years, lifted the covid lockdowns, the whole world rubbed their hands with anticipation: now the Chinese are going to make money, how will they relax , how they will go up and forward! After all, in a few decades, everyone has learned: the growth of the Chinese economy at 1% gives countries “tied” to it at least 0.3% of GDP.
But we have not waited for the next “Chinese miracle”. For example, accustomed to sitting at home for a few years, the citizens of the Celestial Empire are in no hurry to buy new cars as before. As a result, prices have been falling for five months in a row. They are also not as attracted to new apartments. And overall their consumption growth has clearly stalled there. The economy is booming.
The consequences of the NWO and the farmer from the monetary policy of Western countries in the time of that same COVID-19 add their own catch. One of China’s most important markets, the European Union, is steadily sliding into recession and its economy is collapsing – devoid of cheap Russian raw materials and energy resources. In the US, a similar process is likely to materialize in the fall of 2023. And in general, the US market (even the consumer goods market, not to mention high-tech goods) is steadily being closed to the PRC. After all, the United States has long sensed in Asians a threat to its economic dominance in the world and consistently squeezes them out of the house.
Over the past five years, exports from China to North American markets have declined in volume for various product groups from 12% to 40%. And recently, in connection with Taiwanese affairs, this process has only accelerated. What does all this mean for the Chinese macro economy and for the Russian car market? Elementary: Our neighbors’ industry consumes less and less raw materials and raw materials. Meanwhile, we export huge quantities of this good there – about 35% of domestic exports now go to China.
And in the near future, it is likely to reduce the consumption of our natural resources, or force domestic importers to lower their already not very high prices. This will reduce the amount of yuan flowing to us from China. And our purchases of their goods are unlikely. As a result, the exchange rate of the yuan against the ruble will inevitably rise. And certainly a lot. Which entails an inevitable increase in the ruble value of cars imported to us from China. This process will be imposed by a multifold increase in salvage costs for vehicles imported into Russia.
As a result, all these securities will reach the retail car market in Russia sometime in the October-December period of the current year and rewrite the price tags in car dealerships. And all we have to do is say with a sigh, “Well, we warned you!”
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.
