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The recent annual closing conference of the Association of European Businesses (AEB) – previously lively and perky, but now therapeutic and soothing – provided several reasons to reflect
The AEB is a platform where European, Japanese, Korean and of course Chinese importers are present. And it is worth starting to analyze the next “conspiracy theory” with the fact that the head of the AEB committee and the main speaker of the entire conference is the executive director of Hyundai Motor CIS. Well, you understand: a pretty big hint at the position of the Korean brand vis-à-vis the Russian market.
Moreover, Alexey Kalitsev begins his story with the “trump cards”: the sanction packages banning the delivery of cars are described with unequivocal epithets “sad and insulting.” It is impossible to believe that the top manager publicly expressed his personal opinion and not an agreed position. What follows is another highly controversial statement: “brands transform.” Just a little while. Which brands? Where are they transformed? Isn’t this a prelude to the coming clarification in the very near future about the original ownership of the cars coming off the assembly line in the Leningrad region from Korean brands?
Have the Koreans really found a loophole to continue working in Russia and shield themselves from secondary sanctions under the “umbrella” of a friendly, but not subject to the trademarked “Washington Regional Committee”? If this is so, then very soon we will see the usefulness of this matter everywhere: Kalitsev speaks confidently about the launch of all car plants in Russia by the end of the year, but at the same time emphasizes the incredible investment costs – the high cost of loans on this moment due to the high-interest refinancing – and the enormous amount required to restart production at any factory. Curious.
“The state is making efforts to transform the market.” This is literal. Firstly, state regulation, without it it is clearly impossible to get out of this chaos, and secondly, what specific efforts are needed. There is no escaping the most direct answer: recycling collection. Let us remind you that it has grown 210 times since the summer. In two hundred and two there is no mistake: previously they paid 4,000 rubles for “customs clearance” for an individual, now there is no alternative to 840,000, since it is almost impossible to carry out the purchase, delivery and customs clearance without the involvement of “specialists” .
The screw on parallel imports is getting tighter, as the speaker himself says: “Parallel imports have created diversity and chaos.” After which a very clear ‘debriefing’ takes place of the actions of ‘inexperienced persons’. On the one hand, parallel imports are a trend in 2023, and on the other hand, “the trend of tightening the parallel import regulation will continue.” Simply put, this difficult but necessary task – the delivery of imported cars to Russia – should be performed only by professionals. Read on, importers. And everyone else: get out of the sandbox!
The increase in refinancing rates obviously affected demand; people started thinking longer and transacting less often. Like it is. But what follows is very honest: Alexey Kalitsev honestly calls a car loan of 18-19-20 percent “barrier”. In simple words: those who really need to buy a car pay, but everyone else is advised to think about it and postpone the purchase. Why?
Yes, because the market is facing global changes, which Mr. Kalitsev also talks about. They say that by 2025-2026 we will no longer recognize our own roads and the cars that flood them. And for global changes it is necessary to “fertilize the soil” in advance, artificially creating “delayed demand”: future players must be provided with the most attractive conditions from the start, when a hurricane volume of investments must be stimulated by rapid investments . gives back.
The Japanese once admitted that in order to launch a new model on the market, it is necessary to ensure sales of at least 5,000 cars per year. In short, a busy year awaits us, full of unexpected and even stunning events, which will only slightly open the planning horizon for the next 5-10 years. In 364 days, let’s compare our “conspiracy theory” with the new AEB report…
The AEB is a platform where European, Japanese, Korean and of course Chinese importers are present. And it is worth starting to analyze the next “conspiracy theory” with the fact that the head of the AEB committee and the main speaker of the entire conference is the executive director of Hyundai Motor CIS. Well, you understand: a pretty big hint at the position of the Korean brand vis-à-vis the Russian market.
Moreover, Alexey Kalitsev begins his story with the “trump cards”: the sanction packages banning the delivery of cars are described with unequivocal epithets “sad and insulting.” It is impossible to believe that the top manager publicly expressed his personal opinion and not an agreed position. What follows is another highly controversial statement: “brands transform.” Just a little while. Which brands? Where are they transformed? Isn’t this a prelude to the coming clarification in the very near future about the original ownership of the cars coming off the assembly line in the Leningrad region from Korean brands?
Have the Koreans really found a loophole to continue working in Russia and cover themselves from secondary sanctions under the ‘umbrella’ of a friendly, but not subject to the trademark ‘Washington Regional Committee’? If this is so, then very soon we will see the usefulness of this matter everywhere: Kalitsev speaks confidently about the launch of all car plants in Russia by the end of the year, but at the same time emphasizes the incredible investment costs – the high cost of loans on this moment due to the high-interest refinancing – and the enormous amount required to restart production at any factory. Curious.
“The state is making efforts to transform the market.” This is literal. Firstly, state regulation, without it it is clearly impossible to get out of this chaos, and secondly, what specific efforts are needed. There is no escaping the most direct answer: recycling collection. Let us remind you that it has grown 210 times since the summer. In two hundred and two there is no mistake: previously they paid 4,000 rubles for “customs clearance” for an individual, now there is no alternative to 840,000, since it is almost impossible to carry out the purchase, delivery and customs clearance without the involvement of “specialists” .
The screw on parallel imports is getting tighter, as the speaker himself says: “Parallel imports have created diversity and chaos.” After which a very clear ‘debriefing’ takes place of the actions of ‘inexperienced persons’. On the one hand, parallel imports are a trend in 2023, and on the other hand, “the trend of tightening the parallel import regulation will continue.” Simply put, this difficult but necessary task – the delivery of imported cars to Russia – should be performed only by professionals. Read on, importers. And everyone else: get out of the sandbox!
The increase in refinancing rates obviously affected demand; people started thinking longer and transacting less often. Like it is. But what follows is very honest: Alexey Kalitsev honestly calls a car loan of 18-19-20 percent “barrier”. In simple terms: those who really need to buy a car will pay, but everyone is advised to think about it and postpone the purchase. Why?
Yes, because the market is facing global changes, which Mr. Kalitsev also talks about. They say that by 2025-2026 we will no longer recognize our own roads and the cars that flood them. And for global changes it is necessary to “fertilize the soil” in advance, artificially creating “delayed demand”: future players must be provided with the most attractive conditions from the start, when a hurricane volume of investments must be stimulated by rapid investments . gives back.
The Japanese once admitted that in order to launch a new model on the market, it is necessary to ensure sales of at least 5,000 cars per year. In short, a busy year awaits us, full of unexpected and even stunning events, which will only slightly open the planning horizon for the next 5-10 years. In 364 days, let’s compare our “conspiracy theory” with the new AEB report…
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.
