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Thanks to the efforts of the financial and economic authorities of Russia, car prices are rising with enviable enthusiasm and consistency. The AvtoVzglyad portal, which monitors all recent
It is an open secret that the Russian car market will not crawl out of the hole it fell into ten years ago. This isn’t even a fact, it’s much more than a fact – that’s how it really is. A leading researcher at the Institute for Research on International Economic Relations of the Financial University under the Government of the Russian Federation, Dmitry Morkovkin, told without any doubt on the RZD-Partner website that the automotive industry is one of the most economically unstable : “In our opinion, Russians should expect the largest price increases for imported household appliances, cars and domestically produced non-food products until the end of the year.”
Yes, we are not going to like the car market yet. On the contrary, his results are becoming more and more disappointing every month. The wallets of most domestic car enthusiasts are not heavier at all – except perhaps in Rosstat reports. And although employers are not rushing their employees with offers to increase wages, the weighted average price of a car is growing steadily.
The Autostat agency calculated that in August it was 3,130,000 rubles, while at the end of the six months it was at the level of 2,680,000, and five years ago it was exactly two times lower than today. The average price of a passenger car on the Russian market is less indicative, as the sales structure by model and modification is not taken into account, but it looks even scarier: the figures there are one and a half times higher. There is no doubt that this is not the limit.
By the end of this year, the weighted average price of a passenger car will not exceed last year’s by 20%, as now, but by 30%. Many experts think so, especially Igor Morzharetto. Vice President of the Russian Automobile Dealers Association (ROAD) Vyacheslav Zhigalov also agrees. “Unfortunately, we still expect prices to rise towards the end of the year. An increase in the recycling fee and serious fluctuations in the ruble exchange rate have already led to an increase in the price of cars, and by the end of the year we can speak of an increase of up to 30% from January,” he says. the RIA Novosti agency.
Neither car market experts, nor financiers, nor economists are searching for words in their pockets. They clearly explain that the increase in car prices in Russia makes perfect sense; there are several conditions for this. The most obvious are a sharp decline in the ruble exchange rate, inflation, higher logistics costs, higher recycling costs and supply shortages.
This is for specialists. But ordinary motorists have a different view of the problem. For them, the obvious reasons for rising prices are the unwillingness or inability of the government’s financial and economic bloc to fulfill its direct functions: protecting its own population, improving well-being and combating monopoly . The continued price increase, in our opinion, is explained by the natural desire of manufacturers and sellers to make money from the crisis, with full knowledge and contempt on the part of the state.
However, our systems economists sometimes lazily try to dodge accusations of incompetence, placing all the blame on the infamous “hand of the market.” Let’s listen to what Doctor of Economic Sciences, Head of the Department of Transport Complex Management at the State University of Management Alexey Stepanov, said to Russian Railways-Partner, but with a nod to the state: “The market is now uncompetitive, and there is a major lack of supply on the market.
This factor is becoming increasingly important. Therefore, to regulate the subjective factor, the state must provide a mechanism to control prices. In general, prices can rise indefinitely because there are no guidelines. Therefore, it is necessary to solve this problem economically and politically. The basis for lowering car prices is an increase in supply, which exceeds demand. In this case, the market will begin to stabilize and prices will begin to fall, but not completely, because car production directly in Russia is still insignificant.”
I would like to hear from Mr Stepanov some examples of countries where the market regulates itself through competition. It would also be nice if the doctor would delight our ears with a story about where and when the excess of demand over supply has led to lower prices in recent decades. As far as I can remember, cars kept rising in price anyway, even in 2012, when passenger car sales in Russia were approaching a crazy 3 million units.
It is an open secret that the Russian car market will not crawl out of the hole it fell into ten years ago. This isn’t even a fact, it’s much more than a fact – that’s how it really is. A leading researcher at the Institute for Research on International Economic Relations of the Financial University under the Government of the Russian Federation, Dmitry Morkovkin, told without any doubt on the RZD-Partner website that the automotive industry is one of the most economically unstable : “In our opinion, Russians should expect the largest price increases for imported household appliances, cars and domestically produced non-food products until the end of the year.”
Yes, we are not going to like the car market yet. On the contrary, his results are becoming more and more disappointing every month. The wallets of most domestic car enthusiasts are not heavier at all – except perhaps in Rosstat reports. And although employers are not rushing their employees with offers to increase wages, the weighted average price of a car is growing steadily.
The Autostat agency calculated that in August it was 3,130,000 rubles, while at the end of the six months it was at the level of 2,680,000, and five years ago it was exactly two times lower than today. The average price of a passenger car on the Russian market is less indicative, as the sales structure by model and modification is not taken into account, but it looks even scarier: the figures there are one and a half times higher. There is no doubt that this is not the limit.
By the end of this year, the weighted average price of a passenger car will not exceed last year’s by 20%, as now, but by 30%. Many experts think so, especially Igor Morzharetto. Vice President of the Russian Automobile Dealers Association (ROAD) Vyacheslav Zhigalov also agrees. “Unfortunately, we still expect prices to rise towards the end of the year. An increase in the recycling fee and serious fluctuations in the ruble exchange rate have already led to an increase in the price of cars, and by the end of the year we can speak of an increase of up to 30% from January,” he says. the RIA Novosti agency.
Neither car market experts, nor financiers, nor economists are searching for words in their pockets. They clearly explain that the increase in car prices in Russia makes perfect sense; there are several conditions for this. The most obvious are a sharp decline in the ruble exchange rate, inflation, higher logistics costs, higher recycling costs and supply shortages.
This is for specialists. But ordinary motorists have a different view of the problem. For them, the obvious reasons for rising prices are the unwillingness or inability of the government’s financial and economic bloc to fulfill its direct functions: protecting its own population, improving well-being and combating monopoly . The continued price increase, in our opinion, is explained by the natural desire of manufacturers and sellers to make money from the crisis, with full knowledge and contempt on the part of the state.
However, our systems economists sometimes lazily try to dodge accusations of incompetence, placing all the blame on the infamous “hand of the market.” Let’s listen to what Doctor of Economic Sciences, Head of the Department of Transport Complex Management at the State University of Management Alexey Stepanov, said to Russian Railways-Partner, but with a nod to the state: “The market is now uncompetitive, and there is a major lack of supply on the market.
This factor is becoming increasingly important. Therefore, to regulate the subjective factor, the state must provide a mechanism to control prices. In general, prices can rise indefinitely because there are no guidelines. Therefore, it is necessary to solve this problem economically and politically. The basis for lowering car prices is an increase in supply, which exceeds demand. In this case, the market will begin to stabilize and prices will begin to fall, but not completely, because car production directly in Russia is still insignificant.”
I would like to hear from Mr Stepanov some examples of countries where the market regulates itself through competition. It would also be nice if the doctor would delight our ears with a story about where and when the excess of demand over supply has led to lower prices in recent decades. As far as I can remember, cars kept rising in price anyway, even in 2012, when passenger car sales in Russia were approaching a crazy 3 million units.
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.
