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What we’re driving: Russia says goodbye to parallel car imports

  • November 24, 2023
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An increase in the recycling fee, the jump in the exchange rate of the national currency and many other factors have created serious (if not insurmountable) obstacles to

What we’re driving: Russia says goodbye to parallel car imports
An increase in the recycling fee, the jump in the exchange rate of the national currency and many other factors have created serious (if not insurmountable) obstacles to the parallel import of cars. Transporting cars has simply become unprofitable, which is confirmed by domestic car dealers leaving this industry. And few people are willing to pay outrageous amounts of money for imported cars. But what to do? What should you ride and, more importantly, what should you work on? The AutoVzglyad portal tells about one of the ways to solve the problem.

The transformation of the domestic car market continues: as we expected, parallel imports at this time were a temporary solution intended to “close the gap”. At the height of the supply crisis, the ‘grey supply mechanism’ extinguished the flames, but they did not count on it in the long term.

Simply put, it was a tactical decision, not a strategic one. And the scheme has already started to be phased out: increasing the recycling contribution, blocking uncontrolled imports by manufacturers and many other actions should be viewed from this point of view. Preparations have begun for the structuring of the car market, a return to civilized relations and the end of the ‘wild field’.

Parallel import had one major disadvantage: warranty and technical service. The purchased car was completely hanging on the owner’s neck, which forced him to independently find both craftsmen and spare parts. Moreover, in a number of cases the latter were real nuggets: both in terms of price and the difficulty in finding them. And if in some cases of private property this “dark side of the coin” was solvable and compensated by the initial price, then in the commercial segment it became a real revelation. And problems.

Commercial transport is a much more complex structure than private transport. The downtime of a car in use, whether for a complex repair or waiting for parts, takes a toll not only on the owner’s nervous system, but also on his wallet. Downtime in transport entails costs, which have already increased in recent years. As a result, cheap procedures, which only a few years ago took a day or two, could become a reason for a “lock on the gate” and the liquidation of an existing company.

Particularly hard hit were social services, which, because they had contracts in hand, could not fulfill them for “technical reasons”: worn-out equipment that had not been properly maintained was left in “storages” and repair areas, instead of working. For example, the Russian company Ecological Operator once announced the need to completely replace its fleet of imported garbage trucks simply because it was impossible to maintain them: due to problems caused by the burden of sanctions.

Bottom line: It won’t be possible to sell old equipment for a profit, and if you can’t buy new equipment, it will be expensive. Chinese trucks? They have many nuances with the same service, but buying a specialized machine is extremely difficult: a chassis must come from the Middle Kingdom, which will be retrofitted to the buyer’s requirements in Russia. How are we going to carry out the tender? How long will it take and, the key question: how much will it cost? No, here the tactical decision was ‘there’s nothing to patch up’, and the strategic decision was just import substitution.

Fortunately, Russian manufacturers already had something to offer at the “point of no return”: many problems in the medium-duty segment were solved thanks to the “Valdai 8” – a new Nizhny Novgorod truck with a gross weight of up to 7.5 tons , which can carry up to 4 .6 tons of cargo “on board” and has a high maneuverability necessary for urban use. The car is equipped with a new economical G-series diesel engine, which in city mode consumes about 11 liters of fuel per “hundred”. A comfortable cabin, sufficient arsenal of optional equipment, a strong frame, a cabover layout – everything is there. But the most important thing is warranty, service and access to spare parts, throughout Russia and without a multi-day waiting period.

What about the special equipment mentioned above? Russian car manufacturers also produce it. In particular, at the Saransk dump truck plant, for example, they make tow trucks that can transport even commercial equipment, manipulators, auto-hydraulic lifts, dump trucks and much more – based on well-known models such as “Gazelle Business” or ” Gazelle NEXT”. At the same SAZ they unloaded also raised the already mentioned problem of environmental services: on the basis of the Lawn NEXT model, several types of garbage trucks were built at once. They made such a machine on the “Valdai 8” truck – with a spacious hopper of 6 cubic meters and a manipulator which can lift up to 600 kg.

Yes, the problems caused by sanctions and the departure of imported car companies hit the commercial segment the hardest, but domestic manufacturers of trucks and special equipment were the fastest to ramp up production. In this simple way, very interesting competition in the comtrans segment is emerging in Russia for the first time in a long time. Domestic car manufacturers, which have maintainability, attractive prices, a wide dealer network and affordable spare parts, will fight for their right to the domestic market with Chinese equipment, which is even more technologically advanced and diverse. How will this fight end? We’ll find out soon enough based on the sales results. Ultimately it is the buyer who votes, and he always votes fairly – because in rubles.

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

The transformation of the domestic car market continues: as we expected, parallel imports at this time were a temporary solution intended to “close the gap”. At the height of the supply crisis, the ‘grey supply mechanism’ extinguished the flames, but they did not count on it in the long term.

Simply put, it was a tactical decision, not a strategic one. And the scheme has already started to be phased out: increasing the recycling contribution, blocking uncontrolled imports by manufacturers and many other actions should be viewed from this point of view. Preparations have begun for the structuring of the car market, a return to civilized relations and the end of the ‘wild field’.

Parallel import had one major disadvantage: warranty and technical service. The purchased car was completely hanging on the owner’s neck, which forced him to independently find both craftsmen and spare parts. Moreover, in a number of cases the latter were real nuggets: both in terms of price and the difficulty in finding them. And if in some cases of private property this “dark side of the coin” was solvable and compensated by the initial price, then in the commercial segment it became a real revelation. And problems.

Commercial transport is a much more complex structure than private transport. The downtime of a car in use, whether for a complex repair or waiting for parts, takes a toll not only on the owner’s nervous system, but also on his wallet. Downtime in transport entails costs, which have already increased in recent years. As a result, cheap procedures, which only a few years ago took a day or two, could become a reason for a “lock on the gate” and the liquidation of an existing company.

Particularly hard hit were social services, which, because they had contracts in hand, could not fulfill them for “technical reasons”: worn-out equipment that had not been properly maintained was left in “storages” and repair areas, instead of working. For example, the Russian company Ecological Operator once announced the need to completely replace its fleet of imported garbage trucks simply because it was impossible to maintain them: due to problems caused by the burden of sanctions.

Bottom line: It won’t be possible to sell old equipment for a profit, and if you can’t buy new equipment, it will be expensive. Chinese trucks? They have many nuances with the same service, but buying a specialized machine is extremely difficult: a chassis must come from the Middle Kingdom, which will be retrofitted to the buyer’s requirements in Russia. How are we going to carry out the tender? How long will it take and, the key question: how much will it cost? No, here the tactical decision was ‘there’s nothing to patch up’, and the strategic decision was just import substitution.

Fortunately, Russian manufacturers already had something to offer at the “point of no return”: many problems in the medium-duty segment were solved thanks to the “Valdai 8” – a new Nizhny Novgorod truck with a gross weight of up to 7.5 tons , which can carry up to 4 .6 tons of cargo “on board” and has a high maneuverability necessary for urban use. The car is equipped with a new economical G-series diesel engine, which in city mode consumes about 11 liters of fuel per “hundred”. A comfortable cabin, sufficient arsenal of optional equipment, a strong frame, a cabover layout – everything is there. But the most important thing is warranty, service and access to spare parts, throughout Russia and without a multi-day waiting period.

What about the special equipment mentioned above? Russian car manufacturers also produce it. In particular, at the Saransk dump truck plant, for example, they make tow trucks that can transport even commercial equipment, manipulators, auto-hydraulic lifts, dump trucks and much more – based on well-known models such as “Gazelle Business” or ” Gazelle NEXT”. At the same SAZ they unloaded also raised the already mentioned problem of environmental services: on the basis of the Lawn NEXT model, several types of garbage trucks were built at once. They made such a machine on the “Valdai 8” truck – with a spacious hopper of 6 cubic meters and a manipulator which can lift up to 600 kg.

Yes, the problems caused by sanctions and the departure of imported car companies hit the commercial segment the hardest, but domestic manufacturers of trucks and special equipment were the fastest to ramp up production. In this simple way, very interesting competition is emerging in Russia in the comtrans segment – ​​for the first time in a long time. Domestic car manufacturers, which have maintainability, attractive prices, a wide dealer network and affordable spare parts, will fight for their right to the domestic market with Chinese equipment, which is even more technologically advanced and diverse. How will this fight end? We’ll find out soon enough based on the sales results. Ultimately it is the buyer who votes, and he always votes fairly – because in rubles.

Source: Avto Vzglyad

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