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Strategic calculations and miscalculations of the failure of the Russian auto industry

  • December 9, 2022
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The Russian Automobile Dealers Association (ROAD) provides data on the remains of the official presence of car brands in the country’s market, assuming that 14 brands survived: LADA,

Strategic calculations and miscalculations of the failure of the Russian auto industry
The Russian Automobile Dealers Association (ROAD) provides data on the remains of the official presence of car brands in the country’s market, assuming that 14 brands survived: LADA, GAZ, UAZ. Chery, Geely, Haval, JAC, FAW, Dongfeng, Changan, Exeed, GAC, Foton and Omoda. But is it really so, thinks the car expert Sergey ASLANYAN.

ROAD panics strictly according to the schedule – twice a year, in the fall and spring aggravation. Recall that this association of dealers was founded by the ever-memorable Mr. Berezovsky, as a union to fight for the interests of the industry. But because ROAD had achieved nothing during its existence, ROAD mainly focused on two areas: fighting with customers and intimidating the authorities.

To beat you and me, the association even asked the Prime Minister to strip dealers of the “On Consumer Protection” law, then proposed banning the free sale of personal vehicles, obliging the country to sell only through dealers buying and selling commission.

ROAD is less adept at dealing with the authorities, always announcing an industry crisis and predicting the inevitable bankruptcy of 30% of dealers each year, occasionally adjusting the figures to reflect market conditions. And causing another wave of panic, ROAD forgets the position of Korean brands.

Hyundai and Kia have not submitted an official statement of resignation, their dealer networks are functioning and the Koreans continue to supply cars from the official list of homologated for the Russian market. In addition to the Koreans, the Japanese and Germans have not left Russia, but they have no deliveries of new cars.

It is noteworthy that according to the version of the ROAD, three of us survived: LADA, GAZ, UAZ. But recently, the Moskvich plant happened in the country, where Chinese logos were glued to Chinese JAC cars. Recently, a new domestic manufacturer Sollers broke out with a presentation, sticking Chinese logos on other Chinese JAC cars. In Lipetsk, the main manufacturer of electric vehicles in the country, the Chinese Dongfeng under the pseudonym Evolute, works with all its might. And Aurus continues to thrive in the land.

The rest of the brands in the ROAD list are not 11 different foreign companies, but a single Chinese company. No matter how hard ad budgets try to tell the difference between Changan and Exeed, Omoda and GAC, Foton and Haval, they all seem to have something in common, with the same image, minimal credibility and little interest.

Parallel imports create the illusion of a past life, surprising with variety and terrifying with price tags. But by spring, ROAD will finally have plenty of reasons to take up the favorite topic of mourning the ruined. The Koreans will not be able to maintain the dealer network with one-off deliveries and will make an unpopular decision.

The rest will leave the segment of official dealers and take on gray imports and indispensable Chinese, as no other official deliveries are expected. But China will play with Russia just as long as the Americans don’t fall into the hands of the Middle Kingdom. It was no coincidence that the astute Weichai ran away from KamAZ.

And the rampant growth of the Chinese presence will not last long, and the suddenly arrived Chery, Geely, Haval, JAC, FAW, Dongfeng, Changan, Exeed, GAC, Foton and Omoda will disappear as one, with the usual Chinese silence, without explanation and regret.

Photo avtovzglyad.ru
Photo avtovzglyad.ru

ROAD panics strictly according to the schedule – twice a year, in the fall and spring aggravation. Recall that this association of dealers was founded by the ever-memorable Mr. Berezovsky, as a union to fight for the interests of the industry. But because ROAD had achieved nothing during its existence, ROAD mainly focused on two areas: fighting with customers and intimidating the authorities.

To beat you and me, the association even asked the Prime Minister to strip dealers of the “On Consumer Protection” law, then proposed banning the free sale of personal vehicles, obliging the country to sell only through dealers buying and selling commission.

ROAD is less adept at dealing with the authorities, always announcing an industry crisis and predicting the inevitable bankruptcy of 30% of dealers each year, occasionally adjusting the figures to reflect market conditions. And causing another wave of panic, ROAD forgets the position of Korean brands.

Hyundai and Kia have not submitted an official statement of resignation, their dealer networks are functioning and the Koreans continue to supply cars from the official list of homologated for the Russian market. In addition to the Koreans, the Japanese and Germans have not left Russia, but they have no deliveries of new cars.

It is noteworthy that according to the version of the ROAD, three of us survived: LADA, GAZ, UAZ. But recently, the Moskvich plant happened in the country, where Chinese logos were glued to Chinese JAC cars. Recently, a new domestic manufacturer Sollers broke out with a presentation, sticking Chinese logos on other Chinese JAC cars. In Lipetsk, the main manufacturer of electric vehicles in the country, the Chinese Dongfeng under the pseudonym Evolute, works with all its might. And Aurus continues to thrive in the land.

The rest of the brands in the ROAD list are not 11 different foreign companies, but a single Chinese company. No matter how hard ad budgets try to tell the difference between Changan and Exeed, Omoda and GAC, Foton and Haval, they all seem to have something in common, with the same image, minimal credibility and little interest.

Parallel imports create the illusion of a past life, surprising with variety and terrifying with price tags. But by spring, ROAD will finally have plenty of reasons to take up the favorite topic of mourning the ruined. The Koreans will not be able to maintain the dealer network with one-off deliveries and will make an unpopular decision.

The rest will leave the segment of official dealers and take on gray imports and indispensable Chinese, as no other official deliveries are expected. But China will play with Russia just as long as the Americans don’t fall into the hands of the Middle Kingdom. It was no coincidence that the astute Weichai ran away from KamAZ.

And the rampant growth of the Chinese presence will not last long, and the suddenly arrived Chery, Geely, Haval, JAC, FAW, Dongfeng, Changan, Exeed, GAC, Foton and Omoda will disappear as one, with the usual Chinese silence, without explanation and regret.

Source: Avto Vzglyad

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