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It is widely accepted that in 2023, the Russian auto industry has shown miracles in adapting to sanctions and other negative things. And the country’s car market has
The head of AVTOVAZ, Maxim Sokolov, himself provided food for gloomy conclusions. Although obviously not on purpose. This recently happened in Izhevsk at the presentation of the electric version of the LADA Largus. As the President of AVTOVAZ explained to the AvtoVzglyad portal, the further development of the Russian car market depends exclusively on measures of state aid to the domestic manufacturer. Because it is simply not realistic for us to compete with China in this area.
After all, the size of the Celestial market is such that it is possible to organize the production of components in millions of copies, which guarantees their low price. For example, feel the difference between the volume of the Russian market at the level of 1 million units of passenger cars per year and about 30 million sales in the same period in China.
At the same time, Mr Sokolov quite rightly claims that it is not appropriate to give our consumers’ money to the Chinese. Although this is exactly what is happening: in monetary terms, the share of domestic car manufacturers accounts for just over 10% of the national car market. The rest is mainly occupied by “China”.
And at the same time, according to Sokolov, AVTOVAZ plans to capture a share of at least 30-35% of the Russian car market by 2030. That is to say, the company clearly has no intention of being “eaten” by its Chinese comrades. This result can only be achieved in the way already mentioned: state aid.
Although the domestic car market is already strongly shielded from the ‘threat from the East’ – by unaffordable customs duties and the huge recycling contribution that has recently been added. But this is apparently still not enough, because additional “support” from the state is needed. And most likely they will appear – after all, the government increased the rate of the same recycling fee last summer, almost at the first request of the head of AVTOVAZ.
But where will this lead? As a result, the domestic car manufacturer gets a guaranteed sales market – in one form or another. Either it will be a stable government order, or significant subsidies from the budget for the purchase of cars of Russian brands. Or, for example, the same taxi drivers (for example, through licensing conditions) will be voluntarily and forcibly transferred to domestic “wheels”.
Such an industrial policy will place Russian car factories in near-greenhouse conditions. UAZ now exists in approximately the same region and is doing well as a supplier of light wheeled vehicles in the interest of the army. It’s a shame, of course, but in the near future, thanks to ever new state aid measures, the Russian auto industry will most likely turn into something like “UAZ, period.” Whether this event will please consumers is by no means a fact. But everything is going that way.
The head of AVTOVAZ, Maxim Sokolov, himself provided food for gloomy conclusions. Although obviously not on purpose. This recently happened in Izhevsk at the presentation of the electric version of the LADA Largus. As the President of AVTOVAZ explained to the AvtoVzglyad portal, the further development of the Russian car market depends exclusively on measures of state aid to the domestic manufacturer. Because it is simply not realistic for us to compete with China in this area.
After all, the size of the Celestial market is such that it is possible to organize the production of components in millions of copies, which guarantees their low price. For example, feel the difference between the volume of the Russian market at the level of 1 million units of passenger cars per year and about 30 million sales in the same period in China.
At the same time, Mr Sokolov quite rightly claims that it is not appropriate to give our consumers’ money to the Chinese. Although this is exactly what is happening: in monetary terms, the share of domestic car manufacturers accounts for just over 10% of the national car market. The rest is mainly occupied by “China”.
And at the same time, according to Sokolov, AVTOVAZ plans to capture a share of at least 30-35% of the Russian car market by 2030. That is to say, the company clearly has no intention of being “eaten” by its Chinese comrades. This result can only be achieved in the way already mentioned: state aid.
Although the domestic car market is already strongly shielded from the ‘threat from the East’ – by unaffordable customs duties and the huge recycling contribution that has recently been added. But this is apparently still not enough, because additional “support” from the state is needed. And most likely they will appear – after all, the government increased the rate of the same recycling fee last summer, almost at the first request of the head of AVTOVAZ.
But where will this lead? As a result, the domestic car manufacturer gets a guaranteed sales market – in one form or another. Either it will be a stable government order, or significant subsidies from the budget for the purchase of cars of Russian brands. Or, for example, the same taxi drivers (for example, through licensing conditions) will be voluntarily and forcibly transferred to domestic “wheels”.
Such an industrial policy will place Russian car factories in near-greenhouse conditions. UAZ now exists in approximately the same region and is doing well as a supplier of light wheeled vehicles in the interest of the army. It’s a shame, of course, but in the near future, thanks to ever new state aid measures, the Russian auto industry will most likely turn into something like “UAZ, period.” Whether this event will please consumers is by no means a fact. But everything is going that way.
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.
