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Chinese cars will only become more expensive: why has the Ministry of Industry and Trade caved in to Chinese car manufacturers?

  • October 12, 2023
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On October 1, the Ministry of Industry and Trade, with wisdom that is truly supernatural, changed the rules for parallel imports. It banned the import of all car

On October 1, the Ministry of Industry and Trade, with wisdom that is truly supernatural, changed the rules for parallel imports. It banned the import of all car brands under this scheme, which did not stop official deliveries. The AvtoVzglyad portal was surprised why such a departmental step caused disappointment and displeasure among the Russian car owner.

It is necessary to put the people into such a nervous state with constantly inadequate actions that every decision, without exception, provokes domestic administrators at best to cautious bewilderment and at worst to considerable anger. It seems, what does Luzh have to do with it… excuse me, Manturov?

In this particular case, nothing other than a stable tendency to see in every step of the above-mentioned ministry the desire to inflict as much harm as possible on compatriots cannot be canceled overnight. But in fact, the story is as simple as Columbus’ egg, as the famous defender of motorists’ rights Pyotr Shkumatov quickly told in an interview with RG:

– The parallel import mechanism concerns brands that have left the Russian market… It is another matter when a brand seems to work in Russia and has not left the market, while external legal entities bring these cars and sell them cheaper. Their costs are lower because in parallel imports, sellers do not enter the official market and do not invest money in the sales service network. As a result, officially sold cars are more expensive than cars imported under the parallel import scheme…

It would seem that everything is said calmly and understandably, but the noble anger of the “misguided” consumer is ready to boil like a wave – once again the price increase is on our heads! Certainly not like that.

In all honesty

Firstly, the expert rightly notes that the organizers of parallel imports do not have any service or warranty obligations, but for some reason he presents this fact as positive. Secondly, he forgets to mention that of the total amount of cars sold in Russia, “gray” make up only 8-10% of the “white”, as the Autostat agency helpfully tells us, and in no way can the price to influence. trends. And thirdly, according to the testimony of the Ministry of Industry and Trade itself, cited by the same RG, it is mainly expensive cars from Chinese concerns that are in an uncomfortable position. That’s something the average Russian buyer doesn’t care about, but the rich have their own quirks.

It’s about simple justice. Parallel importing – importing cars through secret channels into the country without the consent of the brand owner – is a kick in the ass, even for insignificant ‘grey’ sales. Why should those who bravely resisted Western sanctions suffer on an equal footing with those who cowardly left at the first cry, betraying not only their own financial interests but also the vast mass of customers who trusted them?

Fear of Sinophobes

The next question that inevitably arises after the decision of the Ministry of Industry and Trade is: who is the main beneficiary here? The answer lies on the surface: Chinese companies. Sinophobes immediately suspected the ministry of special love for our brothers from the Middle Kingdom, hastily forgetting that not so long ago, after the introduction of new rules for collecting recycling, experts and analysts unanimously claimed the opposite. For example, here is what independent financial analyst Vitaly Kalugin told AiF:

– Parallel import is still import without permission of the copyright holder. The Chinese have conquered the Russian car market. Prices will of course only increase. If we were talking about those market conditions when, for example, Mercedes, Audi and BMW were competing with each other, they would hardly have entered into a cartel agreement. And now that we have moved away from “Western competition”, Chinese companies understand very well that the Russian market simply has nowhere to go. They don’t hesitate to raise the prices of their cars, knowing that they will be bought anyway, at any price…

Prices have risen and will continue to rise

That is, according to the financial analyst, all Chinese brands are not evil competitors of each other, but forever brothers. Making an agreement for them (and there are more than twenty of them in Russia!) is a small thing. It was the Western fools who measured each other against each other and robbed each other of super profits. Of course, a financier may not know history, but no one has ever stopped the German premium troika from systematically and simultaneously raising prices. Only HSE employees have been praying for competition in the market for a long time.

What you cannot argue with is the statement about the inevitable price increase. But why don’t you have a discussion? Deputy Chairman of the State Duma’s Committee on Economic Policy Artem Kiryanov and car lawyer Sergei Radko don’t think so. As AiF writes, the first said: “Tactically, there will be a price reduction at the end of the year, because this is a general rule: cars from the previous year are sold at a certain discount.” The second shared his dreams with the same publication: “We can assume that the localization of production (which is inevitable in the future) of such cars will increase, which means that prices may fall.” These assumptions can cause nothing but a bitter smile. As one Danish parliamentarian wittily put it: “It is difficult to make predictions, especially about the future.”

Photo from the portal “AvtoVzglyad”.
Photo from the portal “AvtoVzglyad”.

It is necessary to put the people into such a nervous state with constantly inadequate actions that every decision, without exception, provokes domestic administrators at best to cautious bewilderment and at worst to considerable anger. It seems, what does Luzh have to do with it… excuse me, Manturov?

In this particular case, nothing other than a stable tendency to see in every step of the above-mentioned ministry the desire to inflict as much harm as possible on compatriots cannot be canceled overnight. But in fact, the story is as simple as Columbus’ egg, as the famous defender of motorists’ rights Pyotr Shkumatov quickly told in an interview with RG:

– The parallel import mechanism concerns brands that have left the Russian market… It is another matter when a brand seems to work in Russia and has not left the market, while external legal entities bring these cars and sell them cheaper. Their costs are lower because in parallel imports, sellers do not enter the official market and do not invest money in the sales service network. As a result, officially sold cars are more expensive than cars imported under the parallel import scheme…

It would seem that everything is said calmly and understandably, but the noble anger of the “misguided” consumer is ready to boil like a wave – once again the price increase is on our heads! Certainly not like that.

In all honesty

Firstly, the expert rightly notes that the organizers of parallel imports do not have any service or warranty obligations, but for some reason he presents this fact as positive. Secondly, he forgets to mention that of the total amount of cars sold in Russia, “gray” make up only 8-10% of the “white”, as the Autostat agency helpfully tells us, and in no way can the price to influence. trends. And thirdly, according to the testimony of the Ministry of Industry and Trade itself, cited by the same RG, it is mainly expensive cars from Chinese concerns that are in an uncomfortable position. That’s something the average Russian buyer doesn’t care about, but the rich have their own quirks.

It’s about simple justice. Parallel importing – importing cars through secret channels into the country without the consent of the brand owner – is a kick in the ass, even for insignificant ‘grey’ sales. Why should those who bravely resisted Western sanctions suffer on an equal footing with those who cowardly left at the first cry, betraying not only their own financial interests but also the vast mass of customers who trusted them?

Fear of Sinophobes

The next question that inevitably arises after the decision of the Ministry of Industry and Trade is: who is the main beneficiary here? The answer lies on the surface: Chinese companies. Sinophobes immediately suspected the ministry of special love for our brothers from the Middle Kingdom, hastily forgetting that not so long ago, after the introduction of new rules for collecting recycling, experts and analysts unanimously claimed the opposite. For example, here is what independent financial analyst Vitaly Kalugin told AiF:

– Parallel import is still import without permission of the copyright holder. The Chinese have conquered the Russian car market. Prices will of course only increase. If we were talking about those market conditions when, for example, Mercedes, Audi and BMW were competing with each other, they would hardly have entered into a cartel agreement. And now that we have moved away from “Western competition”, Chinese companies understand very well that the Russian market simply has nowhere to go. They don’t hesitate to raise the prices of their cars, knowing that they will be bought anyway, at any price…

Prices have risen and will continue to rise

That is, according to the financial analyst, all Chinese brands are not evil competitors of each other, but forever brothers. Making an agreement for them (and there are more than twenty of them in Russia!) is a small thing. It was the Western fools who measured each other against each other and robbed each other of super profits. Of course, a financier may not know history, but no one has ever stopped the German premium troika from systematically and simultaneously raising prices. Only HSE employees have been praying for competition in the market for a long time.

What you cannot argue with is the statement about the inevitable price increase. But why don’t you have a discussion? Deputy Chairman of the State Duma’s Committee on Economic Policy Artem Kiryanov and car lawyer Sergei Radko don’t think so. As AiF writes, the first said: “Tactically, there will be a price reduction at the end of the year, because this is a general rule: cars from the previous year are sold at a certain discount.” The second shared his dreams with the same publication: “We can assume that the localization of production (which is inevitable in the future) of such cars will increase, which means that prices may fall.” These assumptions can cause nothing but a bitter smile. As one Danish parliamentarian wittily put it: “It is difficult to make predictions, especially about the future.”

Source: Avto Vzglyad

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