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Car dealers and distributors began to overstock. The number of people who want to buy cars from the Middle Kingdom is significantly lower than the volume of their
As often happens now, the source of information that caused a storm among those involved in one way or another in the car market was the analysis agency Autostat. Its executive director, Sergei Udalov, said that Russian dealers have accumulated 175,000 unsold Chinese cars: “Now we see that, almost from the summer of this year, the sales level has become lower than the total of deliveries (imports) and production. This is what is accumulating in the warehouses of distributors and dealers.”
Is it a lot or little? In modern times that is quite a lot, even if it does not cause any sensation. In October, the total volume of the passenger car market – a record for the past year and a half, by the way – was only 112 thousand, and in November this was even less. Moreover, this takes into account not only the “Chinese” contribution, which amounts to about 58%, but also domestic cars, and pitiful Korean leftovers, and vehicles brought in through parallel imports.
If RBC is to be believed, Dmitry Babansky of SBS Consulting notes that dealers will sell the stock of 175 thousand new cars in 1.5 to 2 months. “In a normal market situation, dealers even create stocks one to three months in advance. The current stock is very normal.” But the fact is that Mr. Babansky is dishonest: they won’t sell it. About 110,000 more cars will ‘rush onto the coast’ next month. And besides, how many of them will “stay on the coast”?
It seems that the recipe is simple. Finally, if you lower your high price tag, people will come to you. But no, our dealers can only cut costs by marching, and then on the cunning advice of Behemoth. Alexey Podshchekoldin, chairman of the Russian Automobile Dealers Association, knows what he is talking about: “The manufacturer, together with the dealer, can give a maximum discount of 10-15%, which amounts to about 300 thousand rubles. That is, the price is still from 3 million to 2 million rubles. will not decrease due to this discount. The car will certainly not be a budget car.”
“There was a situation and prices were reduced,” sang Vysotsky. But these are legends of remote antiquity, when “canals flowed where they should flow, and in the end they flowed out where they should.” The history of modern times does not remember price tags being rewritten for the benefit of the people. Now it is at least naive to expect such a miracle. Sober analysts expect an even bigger drop in sales, as the market is vastly undersaturated. In this respect we are generally a wonderland.
I cannot resist quoting Oleg Moseev, head of Automarketer, who announced plans by Chinese companies to sell 1.2 million passenger cars in Russia by 2024: “Demand is cooling because interest on loans is unaffordable. 1.2 million [китайских автомобилей] impossible to sell. Imagine adding AVTOVAZ, UAZ and some other localized brands here. I only have one question: where does the money come from? The accumulated “bag” on dealer inventories is already significant. Imagine bringing it all here and shipping it to dealers.”
Mr Podshchekoldin rightly blames stupid government policies for the current situation: “From whom are we protecting our market, which amounts to 400,000 cars? The design of the import support is incorrect and needs to be changed. And we must involve the Chinese in the meetings on Russian territory. Assembly is also now virtually unsupported, meaning duties are virtually the same for imported finished cars as for cars assembled here.”
But who is against it, our dear Alexey Gennadievich! We are all for it! But no, not everything is memento mori, that is, the Ministry of Industry and Trade! All his actions seem aimed at at least completely discouraging the average Russian driver from having his own car, and at most depriving him of such an opportunity. Car sharing, SIM card – that’s everything for us. And on this point, the government’s economic bloc fully agrees with a certain Mr. Liksutov, who successfully drove car owners in Moscow to… – yes, yes, right there.
During a recent “direct line” with the people, the President of the Russian Federation said: “We have put our trust in our so-called partners. And this auto parts industry has been almost completely lost in our country. That’s why we have to create it. The Ministry of Industry and Trade does this. The problem is solved. You know, I try to say this very carefully because if you say tomorrow, they won’t have time for that tomorrow. This is what he said and promised, but they didn’t do it. But I assure you that the producers are actively working.”
Since it is the Ministry of Industry and Trade that is dealing with the problem, manufacturers and sellers do not share the president’s confidence. The general director of the AutoSpetsCenter Group of Companies, Andrei Terlyukevich, did not know what the president would say when summarizing the results of the year, which is why two days earlier he told RBC that he even expected two waves of price increases – in December and at the beginning of the new year.
We dare not give the president advice, but some high-ranking officials are clearly trying to ruin his plans in their liberality.
As often happens now, the source of information that caused a storm among those involved in one way or another in the car market was the analysis agency Autostat. Its executive director, Sergei Udalov, said that Russian dealers have accumulated 175,000 unsold Chinese cars: “Now we see that, almost from the summer of this year, the sales level has become lower than the total of deliveries (imports) and production. This is what is accumulating in the warehouses of distributors and dealers.”
Is it a lot or little? In modern times that is quite a lot, even if it does not cause any sensation. In October, the total volume of the passenger car market – a record for the past year and a half, by the way – was only 112 thousand, and in November this was even less. Moreover, this takes into account not only the “Chinese” contribution, which amounts to about 58%, but also domestic cars, and pitiful Korean leftovers, and vehicles brought in through parallel imports.
If RBC is to be believed, Dmitry Babansky of SBS Consulting notes that dealers will sell the stock of 175 thousand new cars in 1.5 to 2 months. “In a normal market situation, dealers even create stocks one to three months in advance. The current stock is very normal.” But the fact is that Mr. Babansky is dishonest: they won’t sell it. About 110,000 more cars will ‘rush onto the coast’ next month. And besides, how many of them will “stay on the coast”?
It seems that the recipe is simple. Finally, if you lower your high price tag, people will come to you. But no, our dealers can only cut costs by marching, and then on the cunning advice of Behemoth. Alexey Podshchekoldin, chairman of the Russian Automobile Dealers Association, knows what he is talking about: “The manufacturer, together with the dealer, can give a maximum discount of 10-15%, which amounts to about 300 thousand rubles. That is, the price is still from 3 million to 2 million rubles. will not decrease due to this discount. The car will certainly not be a budget car.”
“There was a situation and prices were reduced,” Vysotsky sang. But these are legends of remote antiquity, when “canals flowed where they should flow, and in the end they flowed out where they should.” The history of modern times does not remember price tags being rewritten for the benefit of the people. Now it is at least naive to expect such a miracle. Sober analysts expect an even bigger drop in sales, as the market is vastly undersaturated. In this respect we are generally a wonderland.
I cannot resist quoting Oleg Moseev, head of Automarketer, who announced plans by Chinese companies to sell 1.2 million passenger cars in Russia by 2024: “Demand is cooling because interest on loans is unaffordable. 1.2 million [китайских автомобилей] impossible to sell. Imagine adding AVTOVAZ, UAZ and some other localized brands here. I only have one question: where does the money come from? The accumulated “bag” on dealer inventories is already significant. Imagine bringing it all here and shipping it to dealers.”
Mr Podshchekoldin rightly blames stupid government policies for the current situation: “From whom are we protecting our market, which amounts to 400,000 cars? The design of the import support is incorrect and needs to be changed. And we must involve the Chinese in the meetings on Russian territory. Assembly is also now virtually unsupported, meaning duties are virtually the same for imported finished cars as for cars assembled here.”
But who is against it, our dear Alexey Gennadievich! We are all for it! But no, not everything is memento mori, that is, the Ministry of Industry and Trade! All his actions seem aimed at at least completely discouraging the average Russian driver from having his own car, and at most depriving him of such an opportunity. Car sharing, SIM card – that’s everything for us. And on this point, the government’s economic bloc fully agrees with a certain Mr. Liksutov, who successfully drove car owners in Moscow to… – yes, yes, right there.
During a recent “direct line” with the people, the President of the Russian Federation said: “We have put our trust in our so-called partners. And this auto parts industry has been almost completely lost in our country. That’s why we have to create it. The Ministry of Industry and Trade does this. The problem is solved. You know, I try to say this very carefully because if you say tomorrow, they won’t have time for that tomorrow. This is what he said and promised, but they didn’t do it. But I assure you that the producers are actively working.”
Since it is the Ministry of Industry and Trade that is dealing with the problem, manufacturers and sellers do not share the president’s confidence. The general director of the AutoSpetsCenter Group of Companies, Andrei Terlyukevich, did not know what the president would say when summarizing the results of the year, which is why two days earlier he told RBC that he even expected two waves of price increases – in December and at the beginning of the new year.
We dare not give the president advice, but some high-ranking officials are clearly trying to ruin his plans in their liberality.
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.
