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How the Ministry of Industry and Commerce framed Putin: Prices for new cars will not fall

Car prices are a very interesting area of ​​human knowledge. You might even say – amazing and unbelievable, defying any logic. Even the President of the Russian Federation had to pay attention to the problem, but this will hardly make things easier for the citizens of the country in the near future. And why, explains the portal “AvtoVzglyad”.

As you know, at a meeting with members of the government, Vladimir Putin instructed the head of the Ministry of Industry and Trade, Denis Manturov, to control the cost of cars and stop abuses associated with its unreasonable increase. The president has many worries, he cannot physically constantly monitor all aspects of domestic and foreign policy, as well as all economic trends. In addition, there seems to be a specially trained person to perform the last function.

Issues of paramount importance for the development of the Russian economy must be resolved by the aforementioned Denis Valentinovich Manturov. And since he has been Minister of Industry and Trade of the Russian Federation since 2012, it was with his direct participation in the government of the country that car prices rose to exorbitant values.

Mr. Manturov’s office strangely missed the 2013 crisis, which fabulously enriched some and ruined others. For some reason, it did not dare to shake hands with car manufacturers and dealers of all countries and all brands, who unanimously stated that only the economic situation forces them to regularly rewrite price tags upwards. The dollar and the euro are growing, dear buyers – so draw your own conclusions. At the same time, the fact was timidly concealed that at the same time they all readily reported on the steady increase in the rate of localization, which was supposed in theory to insure against fluctuations in exchange rates.

The result, as they say, is obvious. According to the Avtostat agency, the most popular car in our country, LADA Granta, has increased in price by 127% over the past 10 years, Renault Logan – by 109%, Hyundai Solaris and Kia Rio – by 90%, Volkswagen Polo – by 123% . We are talking, as you can see, about very budget cars. Luxury and premium, of course, have not risen weakly either, but their buyers are still better off. As for ordinary hard workers, how many wages have increased by the same 100% over the past ten years?

Of course, if someone suddenly decides to believe Rosstat with his cunning numbers, it will turn out that the “average monthly nominal wage” really increased more than twice. Personally, I somehow missed this moment. For me, as for all my friends, she stood firmly in place, and in particularly unfortunate cases she even fell.

That is why there is no confidence in the nice numbers that our statisticians have derived. What is the average salary? This is the average temperature in the hospital. The subsistence minimum in Russia is 17,683 rubles. The monthly income of A. Miller or G. Gref (according to information from the Regnum bureau) exceeds 65,000,000 rubles. It is likely that the actual receipts in their wallets are even higher, but in 2015 company executives were given permission not to disclose this highly confidential information. And some media outlets’ attempts to uncover the truth and publish the results of their investigations ended in lawsuits from top executives.

The average monthly salary of 63,784 rubles, indicated by Rosstat, is obtained in this way by adding the income of one of the above leaders and 1,400 poor fellows who are on the “minimum wage”. Here’s some tricky math. And it is not for nothing that our president is concerned about the price problem in the auto industry, since the gap between the cost of cars and real wages has already reached critical proportions. And unfortunately, no enlightenment is predicted in the near future.

If Economic Development Minister Maxim Gennadyevich Reshetnikov declares that inflation in Russia will reach 12-12.4% by the end of 2022, then car price tags will be rewritten faster (moreover, in the context of the resulting overall deficit, it is not economically responsible). No wonder the Chinese sell their cars on our market with a markup of at least 30% – they will buy anyway.

Meanwhile, the government offers homeopathic remedies as resuscitation measures. The preferential auto loan program, which covers families with at least one minor child, doctors, teachers and, in the near future, NBO participants, is unlikely to radically improve the situation. The subsidy only covers 20% of the cost of the car, which is clearly not enough.

Shall we wait until the price of AVTOVAZ products is comparable to the price of Sukhoi Design Bureau products? And this will happen if anti-monopoly measures are not rigorously enforced, nipping the cartel agreements in the bud. And that requires more than the introduction of preferred programs. It is necessary to create a transparent system for regulating prices in a shrinking industry, and not at all to justify the super-profits of top executives, but to eliminate the distortions that have accumulated over a decade of indifference that has raged.

Photo: globallookpress.com
Photo: globallookpress.com
Photo: globallookpress.com

As you know, at a meeting with members of the government, Vladimir Putin instructed the head of the Ministry of Industry and Trade, Denis Manturov, to control the cost of cars and stop abuses associated with its unreasonable increase. The president has many worries, he cannot physically constantly monitor all aspects of domestic and foreign policy, as well as all economic trends. In addition, there seems to be a specially trained person to perform the last function.

Issues of paramount importance for the development of the Russian economy should be addressed by the aforementioned Denis Valentinovich Manturov. And since he has been Minister of Industry and Trade of the Russian Federation since 2012, it was with his direct participation in the government of the country that car prices rose to exorbitant values.

Mr. Manturov’s office strangely missed the 2013 crisis, which fabulously enriched some and ruined others. For some reason, it did not dare to shake hands with car manufacturers and dealers of all countries and all brands, who unanimously stated that only the economic situation forces them to regularly rewrite price tags upwards. The dollar and the euro are growing, dear buyers – so draw your own conclusions. At the same time, the fact was timidly concealed that at the same time they all readily reported on the steady increase in the rate of localization, which was supposed in theory to insure against fluctuations in exchange rates.

The result, as they say, is obvious. According to the Avtostat agency, the most popular car in our country, LADA Granta, has increased in price by 127% over the past 10 years, Renault Logan – by 109%, Hyundai Solaris and Kia Rio – by 90%, Volkswagen Polo – by 123% . We are talking, as you can see, about very budget cars. Luxury and premium, of course, have not risen weakly either, but their buyers are still better off. As for ordinary hard workers, how many wages have increased by the same 100% over the past ten years?

Of course, if someone suddenly decides to believe Rosstat with his cunning numbers, it will turn out that the “average monthly nominal wage” really increased more than twice. Personally, I somehow missed this moment. For me, as for absolutely all my friends, she stood firmly in place, and in particularly unfortunate cases even fell.

That is why there is no confidence in the nice numbers that our statisticians have derived. What is the average salary? This is the average temperature in the hospital. The subsistence minimum in Russia is 17,683 rubles. The monthly income of A. Miller or G. Gref (according to information from the Regnum bureau) exceeds 65,000,000 rubles. It is likely that the actual receipts in their wallets are even higher, but in 2015 company executives were given permission not to disclose this highly confidential information. And some media outlets’ attempts to uncover the truth and publish the results of their investigations ended in lawsuits from top executives.

The average monthly salary of 63,784 rubles, indicated by Rosstat, is obtained in this way by adding the income of one of the above leaders and 1,400 poor fellows who are on the “minimum wage”. Here’s some tricky math. And it is not for nothing that our president is concerned about the price problem in the auto industry, since the gap between the cost of cars and real wages has already reached critical proportions. And unfortunately, no enlightenment is predicted in the near future.

If Economic Development Minister Maxim Gennadyevich Reshetnikov declares that inflation in Russia will reach 12-12.4% by the end of 2022, then car price tags will be rewritten faster (moreover, in the context of the resulting overall deficit, it is not economically responsible). No wonder the Chinese sell their cars on our market with a markup of at least 30% – they will buy anyway.

Meanwhile, the government offers homeopathic remedies as resuscitation measures. The preferential auto loan program, which covers families with at least one minor child, doctors, teachers and, in the near future, NBO participants, is unlikely to radically improve the situation. The subsidy only covers 20% of the cost of the car, which is clearly not enough.

Shall we wait until the price of AVTOVAZ products is comparable to the price of Sukhoi Design Bureau products? And this will happen if anti-monopoly measures are not rigorously enforced, nipping the cartel agreements in the bud. And that requires more than the introduction of preferred programs. It is necessary to create a transparent system for regulating prices in a shrinking industry, and not at all to justify the super-profits of top executives, but to eliminate the distortions that have accumulated over a decade of indifference that has raged.

Source: Avto Vzglyad

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