In Russia, the rules for new car sales could change dramatically
- January 3, 2024
- 0
The last months of the past year have clearly shown that the country’s citizens no longer have the strength and ability to purchase new vehicles at exorbitant prices.
The last months of the past year have clearly shown that the country’s citizens no longer have the strength and ability to purchase new vehicles at exorbitant prices. This is evident from the overcrowding of the dealer warehouses, where, according to some estimates, more than 170,000 new cars and about 18,000 trucks, mainly Chinese, are gathered. And our eastern partners failed to sell them, despite very interesting and varied discount programs. And besides, the percentage of car loans approved by banks has fallen significantly, and our compatriots themselves have begun to refuse borrowed money due to its high cost. And if everything continues like this, by 2024 the Russian car market will face at least stagnation and at most a significant decline. Unless, of course, the problem is immediately resolved by the state.
And it’s not just about the Central Bank’s infamous rates and recycling collection, which need to be reduced. The greed of car dealers also plays a role, because they still cannot imagine their happy life without various surcharges. Although in the latter, by the way, some car manufacturers found at least some form of control and began to sell their products without surcharges through marketplaces. Although, of course, this will not solve the problem as a whole. Much more drastic measures are needed.
Which, we notice, will be reflected in car sales (or rather, the lack thereof) in the first months of the coming year. It is unlikely that car sales volumes will increase in the January-February period, even if, as many experts are sure, prices will not increase much in the foreseeable period.
And simply because where else can we go even higher? And because frozen ‘warehouses’ need to be cleared out. And finally, there are no objective conditions yet for raising prices (both car manufacturers and car dealers should at least look at what will happen to exchange rates). But even a temporary ‘price drop’, we repeat, will not induce the mass buyer to buy new ‘wheels’.
It seems that we have reached a point in the domestic car market where the authorities will have to think about strict government regulation. Such as in the recent story about the shortage and high costs of eggs. The Russian government showed political will and voila: the ‘egg problem’, albeit belatedly, was successfully resolved. And everything is going so far that a heavy hand from the government must come to the car sales segment. Moreover, the clear conditions for this are already clear. However, you can learn more about the problem and the ways to solve it at the highest level in the next episode of the AutoVzglyad portal podcast, which you can find Here.
And it’s not just about the Central Bank’s infamous rates and recycling collection, which need to be reduced. The greed of car dealers also plays a role, because they still cannot imagine their happy life without various surcharges. Although in the latter, by the way, some car manufacturers found at least some form of control and began to sell their products without surcharges through marketplaces. Although, of course, this will not solve the problem as a whole. Much more drastic measures are needed.
Which, we notice, will be reflected in car sales (or rather, the lack thereof) in the first months of the coming year. It is unlikely that car sales volumes will increase in the January-February period, even if, as many experts are sure, prices will not increase much in the foreseeable period.
And simply because where else can we go even higher? And because frozen ‘warehouses’ need to be cleared out. And finally, there are no objective conditions yet for raising prices (both car manufacturers and car dealers should at least look at what will happen to exchange rates). But even a temporary ‘price drop’, we repeat, will not induce the mass buyer to buy new ‘wheels’.
It seems that we have reached a point in the domestic car market where the authorities will have to think about strict government regulation. Such as in the recent story about the shortage and high costs of eggs. The Russian government showed political will and voila: the ‘egg problem’, albeit belatedly, was successfully resolved. And everything is going so far that a heavy hand from the government must come to the car sales segment. Moreover, the clear conditions for this are already clear. However, you can learn more about the problem and the ways to solve it at the highest level in the next episode of the AutoVzglyad portal podcast, which you can find Here.
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.
