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Falling ruble, complicated logistics, salvage: the authorities have nipped the car market in the bud

  • August 18, 2023
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Instead of carefully watering all the living sprouts in the desert formed after the massive demarche of automakers last spring, the authorities cut off their oxygen. It is

Falling ruble, complicated logistics, salvage: the authorities have nipped the car market in the bud
Instead of carefully watering all the living sprouts in the desert formed after the massive demarche of automakers last spring, the authorities cut off their oxygen. It is not usual for us to live peacefully and earn money. You have to suffer, fight and pay exorbitant prices for something that actually costs much less. How and for the sake of what perish essentially and unenhanced parallel imports of cars? And where does this all lead us in the near future?

Lately, talks about further ways to develop the domestic car market have been overflowing. We never created our own full-fledged auto industry and what we had was almost destroyed to the ground. The workshops remained, often sold by the former owners for a token ruble. And to revive them, you need to fence the entire current garden. There are old brands and the few Chinese car mechanics who hastily joined them, for the sake of future achievements of which, it seems, they will again not spare our wallets.

Who would argue: Even if it didn’t last long, parallel imports became a little outlet that somehow allowed them to survive the turbulence. Of course, he often leans more towards “gray” semi-legal schemes, which we reportedly left behind in the masses in the early 2000s. But gray automatically appears where there isn’t enough white.

Today, a lot is changing, the share of sales of “parallel” machines, which until recently occupied more than 30% of the total flow, is beginning to decrease. The reason for this is not just the total Chinese “car pandemic” that crossed the border. Of course, the state benefits from big players with impressive budgets, while stingy little things are much trickier.

Talking heads from the car industry keep repeating that it has become unprofitable to transport ‘grey’ goods on a large scale. We are talking about new sanctions, exchange rate turmoil and of course the logistical complication, to which the new salvage rates fell like a powerful paperweight. And as a result, a regular, up to several times a month, increase in car prices. Especially brightly and clearly, the industry flashed the rewritten price tags this summer.

It turns out that if the purpose of increasing the salvage fee was to support Avtovaz and revive the dead car plants inherited by the domestic company, then it is now clear who will pay for all this. Again, we are ordinary people who have to buy cars at exorbitant prices so that the white and fuzzy “Chinese” regularly share profits with our state. With their volumes, the savings of the Russian state are a trifle. In short, we try to ride up the mountain on a lame horse again.

But the state is not satisfied with the current adverse situation, reinforced by deliberate protective measures on a local economic scale. According to tradition, you need to squeeze so that the joints burst. Taking advantage of the fact that “grey” sellers, who wanted to sell the car quickly for a bargain price, did not always get “purely” the documents needed for legal import, the coveted SBKTS (Certificate of Vehicle Design Safety) became included in the risk group.

In other words, for several months Rosstandart, after allegedly revealing violations, has been canceling “scabs” in significant quantities. Without them, you will not be able to register the vehicle with the traffic police until you pass the examination procedure in recognized organizations. And these studies, according to eyewitnesses, are long and very expensive.

So it is more or less clear how and why parallel imports are dying. But what will this lead to in the near future? The desired bright future is not yet in sight. Plants, even if there are partners and money, to establish production for more than a month. And speaking of a full cycle, it takes years.

Paraimport, unable to withstand the pressure, will soon give up for the sake of the officials’ welfare. However, there are already honest fears from smart offices that official suppliers cannot put endless pressure on the cost of the product either. The market is at its limit and the newly established equilibrium between supply and demand in the course of a prolonged price increase is about to collapse. And already this year pessimists from the dealer environment are sure that in the current state of affairs, sales of new (read Chinese) cars will not just stop growing, but will drop noticeably.

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Photo by globallookpress.com

Lately, talks about further ways to develop the domestic car market have been overflowing. We never created our own full-fledged auto industry and what we had was almost destroyed to the ground. The workshops remained, often sold by the former owners for a token ruble. And to revive them, you need to fence the entire current garden. There are old brands and the few Chinese car mechanics who hastily joined them, for the sake of future achievements of which, it seems, they will again not spare our wallets.

Who would argue: Even if it didn’t last long, parallel imports became a little outlet that somehow allowed them to survive the turbulence. Of course, he often leans more towards “gray” semi-legal schemes, which we reportedly left behind in the masses in the early 2000s. But gray automatically appears where there isn’t enough white.

Today, a lot is changing, the share of sales of “parallel” machines, which until recently occupied more than 30% of the total flow, is beginning to decrease. The reason for this is not just the total Chinese “car pandemic” that crossed the border. Of course, the state benefits from big players with impressive budgets, while stingy little things are much trickier.

Talking heads from the car industry keep repeating that it has become unprofitable to transport ‘grey’ goods on a large scale. We are talking about new sanctions, exchange rate turmoil and of course the logistical complication, to which the new salvage rates fell like a powerful paperweight. And as a result, a regular, up to several times a month, increase in car prices. Especially brightly and clearly, the industry flashed the rewritten price tags this summer.

It turns out that if the purpose of increasing the salvage fee was to support Avtovaz and revive the dead car plants inherited by the domestic company, then it is now clear who will pay for all this. Again, we are ordinary people who have to buy cars at exorbitant prices so that the white and fuzzy “Chinese” regularly share profits with our state. With their volumes, the savings of the Russian state are a trifle. In short, we try to ride up the mountain on a lame horse again.

But the state is not satisfied with the current adverse situation, reinforced by deliberate protective measures on a local economic scale. According to tradition, you need to squeeze so that the joints burst. Taking advantage of the fact that “grey” sellers, who wanted to sell the car quickly for a bargain price, did not always get “purely” the documents needed for legal import, the coveted SBKTS (Certificate of Vehicle Design Safety) became included in the risk group.

In other words, for several months Rosstandart, after allegedly revealing violations, has been canceling “scabs” in significant quantities. Without them, you will not be able to register the vehicle with the traffic police until you pass the examination procedure in recognized organizations. And these studies, according to eyewitnesses, are long and very expensive.

So it is more or less clear how and why parallel imports are dying. But what will this lead to in the near future? The desired bright future is not yet in sight. Plants, even if there are partners and money, to establish production for more than a month. And speaking of a full cycle, it takes years.

Paraimport, unable to withstand the pressure, will soon give up for the sake of the officials’ welfare. However, smart offices already fear that official suppliers cannot exert endless pressure on the costs of the product. The market is at its limit and the hardly sketched equilibrium between supply and demand in the course of a prolonged price increase is about to collapse. And already this year, pessimists from the dealer environment are sure that at the current state of affairs, sales of new (read Chinese) cars will not only stop growing, but will also noticeably decline.

Source: Avto Vzglyad

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