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Parallel import – a panacea for the Russian car market? Not really

After the collapse of official car imports and the closure of almost all car factories in the Russian Federation, the eyes of Russian motorists turned to parallel imports with hope. Salvation, however, did not come from that side. The AvtoVzglyad portal found out why the following popular aspirations were shattered.

What exactly is parallel import? Yes, just allow legal entities and individuals to import cars from abroad without permission from the copyright holder. What was the calculation? Very easy. Oh won’t you sell us your cars? It is worse for you – we will not buy them directly from you, but where we want and how we want, and we will not ask you.

It was smooth on paper, but our economists forgot one important point: the science under their jurisdiction is a delicate thing. She always reacts unpredictably to all our wishes. But not just ours. The unpredictability of the economy’s response to ill-considered gestures is the very pillar upon which the other side, represented by the so-called civilized world, has crashed from all over.

What’s the problem? It seems that the market is empty – so bring the goods, the buyer sweeps everything off the shelves. But it wasn’t there. Let’s look at the numbers, kindly released by the Avtostat bureau, and we will talk only about new cars and leave out the used ones, although there are also many interesting things.

For example, in February 2022, just before the start of the sanctions storm, 24,402 cars were imported into Russia by legal entities and 486 by private individuals. By September, it was becoming clear to even the most stubborn optimists that the bad weather would be long overdue. But this insight did not lead to a revival of the market – on the contrary.

In the first month of autumn, “Yuriki” delivered a miserable 7692 cars to our country, although “Physics” – 3600 pieces. Yes, our smaller brothers have done their best and increased their contribution to the final figures by almost 8 times, but only about 500 cars fall under the strict definition of parallel imports.

With 44,398 vehicle registrations in September, the combined efforts of both legal entities and private individuals yielded only a quarter of that. This has in no way lifted the market out of the hole it has been in for months. For the fall in September compared to the same month last year was 60%, regardless of any doors wide open by customs.

Against the general dull background, timid voices of incomplete optimists were heard – they say that thanks to parallel imports, the choice of models presented in Russia has expanded significantly, and our drivers can buy very exotic cars like the Volkswagen ID.6. , Mercedes-Benz EQE 350, Mercedes-Benz EQV, Skoda Scala, Skoda Kamiq. So it is, only such curiosities are few. And 63% of the production of “yuriks” is officially imported “Chinese”, and not the cheapest. Yes, and “physicists” do not like diversity and usually focus on the “Japanese”, 68% of which are part of the range of vehicles they provide.

Is it possible to hope that, as stocks become depleted, former official dealers and other car dealers will more actively increase their notorious parallel imports? Hope, of course, dies last, but in reality we are unlikely to expect a qualitative breakthrough. After all, legal entities have been transporting approximately the same number of new cars every month since March. This means that this volume is objectively optimal from a financial and logistical point of view – the number of car carriers, whether ships or trains, is not infinite.

Well, as always, our legislators and executives to this day have not bothered to make the import of cars from abroad any more attractive than in the prosperous past. They stubbornly reject all proposals to reduce customs duties, which range from 48% to 54% for individuals and 15% for legal entities. This is in addition to other levies, excise duties and recycling levies. The justification is the same, which they have hardened by heart and for life: it is necessary to protect the domestic producer. Given the current state of the automotive industry in Russia, this excuse seems pathetic to say the least.

In general, one can safely apply to the situation with parallel imports a quote from The Adventures of the Good Soldier Schweik, as well-meaning as ever, if crude: “We villains thought this commission would help us. She didn’t help us!

globallookpress.com’s photo
  • Photo by globallookpress.com
  • Photo by globallookpress.com

What exactly is parallel import? Yes, just allow legal entities and individuals to import cars from abroad without permission from the copyright holder. What was the calculation? Very easy. Oh won’t you sell us your cars? It is worse for you – we will not buy them directly from you, but where we want and how we want, and we will not ask you.

It was smooth on paper, but our economists forgot one important point: the science under their jurisdiction is a delicate thing. She always reacts unpredictably to all our wishes. But not just ours. The unpredictability of the economy’s response to ill-considered gestures is the very pillar upon which the other side, represented by the so-called civilized world, has crashed from all over.

What’s the problem? It seems that the market is empty – so bring the goods, the buyer sweeps everything off the shelves. But it wasn’t there. Let’s look at the numbers, kindly released by the Avtostat bureau, and we will talk only about new cars and leave out the used ones, although there are also many interesting things.

For example, in February 2022, just before the start of the sanctions storm, 24,402 cars were imported into Russia by legal entities and 486 by private individuals. By September, it was becoming clear to even the most stubborn optimists that the bad weather would be long overdue. But this insight did not lead to a revival of the market – on the contrary.

In the first month of autumn, “Yuriki” delivered a miserable 7692 cars to our country, although “Physics” – 3600 pieces. Yes, our smaller brothers have done their best and increased their contribution to the final figures by almost 8 times, but only about 500 cars fall under the strict definition of parallel imports.

With 44,398 vehicle registrations in September, the combined efforts of both legal entities and private individuals yielded only a quarter of that. This has in no way lifted the market out of the hole it has been in for months. For the fall in September compared to the same month last year was 60%, regardless of any doors wide open by customs.

Against the general dull background, timid voices of incomplete optimists were heard – they say that thanks to parallel imports, the choice of models presented in Russia has expanded significantly, and our drivers can buy very exotic cars like the Volkswagen ID.6. , Mercedes-Benz EQE 350, Mercedes-Benz EQV, Skoda Scala, Skoda Kamiq. So it is, only such curiosities are few. And 63% of the production of “yuriks” is officially imported “Chinese”, and not the cheapest. Yes, and “physicists” do not like diversity and usually focus on the “Japanese”, 68% of which are part of the range of vehicles they provide.

Is it possible to hope that, as stocks become depleted, former official dealers and other car dealers will more actively increase their notorious parallel imports? Hope, of course, dies last, but in reality we are unlikely to expect a qualitative breakthrough. After all, legal entities have been transporting approximately the same number of new cars every month since March. This means that this volume is objectively optimal from a financial and logistical point of view – the number of car carriers, whether ships or trains, is not infinite.

Well, as always, our legislators and executives to this day have not bothered to make the import of cars from abroad any more attractive than in the prosperous past. They stubbornly reject all proposals to reduce customs duties, which range from 48% to 54% for individuals and 15% for legal entities. This is in addition to other levies, excise duties and recycling levies. The justification is the same, which they have hardened by heart and for life: it is necessary to protect the domestic producer. Given the current state of the automotive industry in Russia, this excuse seems pathetic to say the least.

In general, one can safely apply to the situation with parallel imports a quote from The Adventures of the Good Soldier Schweik, as well-meaning as ever, if crude: “We villains thought this commission would help us. She didn’t help us!

Source: Avto Vzglyad

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