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Only a few months remain for the “celebration” of the anniversary of the moment when the beginning of the steady decline of the domestic car market can be
In mid-December, the news began to “walk” on the Internet that there were practically no cars left in the warehouses of Russian car dealerships. According to various estimates, something around 20,000-30,000 pieces – and that’s it.
– In fact, there are several tens of thousands of new cars left across the country. If we take brands individually, each dealer will get less than 1000. In 2023, most DCs can be left with empty warehouses,” Alexey Podshchekoldin, vice president of the Association of Russian Car Dealers, drew an apocalyptic picture.
In addition, car dealerships are running out of stocks of Kia, Hyundai, Toyota, Renault and VW cars. Of the foreign cars, mostly expensive “Chinese” remained. Well, something from AVTOVAZ products. According to the expert, this is enough for another month of trading. Next… Now What? For reference: last year almost 1.7 million cars were sold in Russia, in 2022 – many times less.
“We will reach about 650,000 sales by the end of this year. It turns out that the shortfall is 1.1 million cars. It is unlikely to be covered next year, iz.ru quotes Podshchekoldin.
A million-dollar shortage of cars on the market is, in theory, a serious reason to “move” not just car dealerships, but the state in the first place. Because if you let the situation run its course, then in the near future there will simply be nothing to drive in the country. The fleet without new cars will gradually go to the scrap heap.
At the beginning and middle of the outgoing year, many experts had hopes that our auto market would support parallel imports and all that. In fact, we have only developed a “gray” import of cars: the import of cars from abroad with payment of “horse” prohibitive customs duties. We remember that they were once introduced to stimulate the production of cars on Russian territory. And then it worked: foreign auto giants opened several dozen of their factories here, gradually deepened localization, and so on. But since the spring of this year, all these enterprises have come to a standstill, nothing of them comes to our market.
Have Russian authorities “protected the domestic car market” with protective customs duties in the past 10 months? From whom may I ask? What is happening is more like protecting the domestic car owner from new cars. After all, AVTOVAZ is one with its LADA Granta and Niva, on which there is not even an ABS, you will not be stuffed. In addition, our flagship (in fact, it is the only representative) of the automotive industry this year will hardly be able to assemble only 200,000 cars. And by 2023, it swung to a whopping 400,000 units, which is clearly not enough to make up for the dire shortage in the car market.
That’s why Chinese car manufacturers are “full of fun”: they sell their beautiful but deshman crafts at premium prices! Their price tags are physically prohibitive for most motorists in the country. What are the authorities doing in the meantime?
Simulate “taking action”. The Ministry of Industry and Commerce reports on every corner about concessional loans: discounts subsidized by the state budget when buying products from AVTOVAZ, UAZ and even Chinese Evolute electric vehicles, which, even taking into account government surcharges, cost like an airplane wing . And who needs these electric cars? Taxi drivers and car sharing? And what about the millions of motorists of the country, what to drive? In a good way, in the current circumstances, it is the Ministry of Industry and Commerce that is obligated to do something, and not sit on the priest exactly as it is now. For example, to create conditions to saturate the market here and now, while AVTOVAZ swings with its production.
And like air, it is necessary to lower the inherently speculative prices for the same Chinese cars in our market. You don’t have to invent anything for this. It is sufficient temporarily, for example for a year, to set import duties on new cars to zero, nothing more. Yes, the budget gets a little less from customs. But such a measure will boost vehicle imports, which will bring a huge increase in taxes on car sales in the country. And in general, it will revive the car market, bringing prices back at least to pre-Covid levels. Why hasn’t this been done yet? No answer.
Meanwhile, protective levies on new car imports into Russia seem economically inexplicable under the current circumstances. At the very least, this is an act of blatant undermining or unprofessionalism of “responsible jackets” in the country’s government. Or even worse. Since the clearly artificial “drainage” of the Russian car market can be observed daily with the naked eye, and this does not really “fly” for anyone in power structures …
In mid-December, the news began to “walk” on the Internet that there were practically no cars left in the warehouses of Russian car dealerships. According to various estimates, something around 20,000-30,000 pieces – and that’s it.
– In fact, there are several tens of thousands of new cars left across the country. If we take brands individually, each dealer will get less than 1000. In 2023, most DCs can be left with empty warehouses,” Alexey Podshchekoldin, vice president of the Association of Russian Car Dealers, drew an apocalyptic picture.
In addition, car dealerships are running out of stocks of Kia, Hyundai, Toyota, Renault and VW cars. Of the foreign cars, mostly expensive “Chinese” remained. Well, something from AVTOVAZ products. According to the expert, this is enough for another month of trading. Next… Now What? For reference: last year almost 1.7 million cars were sold in Russia, in 2022 – many times less.
“We will reach about 650,000 sales by the end of this year. It turns out that the shortfall is 1.1 million cars. It is unlikely to be covered next year, iz.ru quotes Podshchekoldin.
A million-dollar shortage of cars on the market is, in theory, a serious reason to “move” not just car dealerships, but the state in the first place. Because if you let the situation run its course, then in the near future there will simply be nothing to drive in the country. The fleet without new cars will gradually go to the scrap heap.
At the beginning and middle of the outgoing year, many experts had hopes that our auto market would support parallel imports and all that. In fact, we have only developed a “grey” import of cars: the import of cars from abroad with payment of “horse” prohibitive customs duties. We remember that they were once introduced to stimulate the production of cars on Russian territory. And then it worked: foreign auto giants opened several dozen of their factories here, gradually deepened localization, and so on. But since the spring of this year, all these enterprises have come to a standstill, nothing of them comes to our market.
Have Russian authorities “protected the domestic car market” with protective customs duties in the past 10 months? From whom may I ask? What is happening is more like protecting the domestic car owner from new cars. After all, AVTOVAZ is one with its LADA Granta and Niva, on which there is not even an ABS, you will not be stuffed. In addition, our flagship (in fact, it is the only representative) of the automotive industry this year will hardly be able to assemble only 200,000 cars. And by 2023, it swung to a whopping 400,000 units, which is clearly not enough to make up for the dire shortage in the car market.
That’s why Chinese car manufacturers are “full of fun”: they sell their beautiful but deshman crafts at premium prices! Their price tags are physically prohibitive for most motorists in the country. What are the authorities doing in the meantime?
Simulate “taking action”. The Ministry of Industry and Commerce reports on every corner about concessional loans: discounts subsidized by the state budget when buying products from AVTOVAZ, UAZ and even Chinese Evolute electric vehicles, which, even taking into account government surcharges, cost like an airplane wing . And who needs these electric cars? Taxi drivers and car sharing? And what about the millions of motorists of the country, what to drive? In a good way, in the current circumstances, it is the Ministry of Industry and Commerce that is obliged to do something, and not sit on the priest exactly as it is now. For example, to create conditions to saturate the market here and now, while AVTOVAZ swings with its production.
And like air, it is necessary to lower the inherently speculative prices for the same Chinese cars in our market. You don’t have to invent anything for this. It is sufficient temporarily, for example for a year, to set import duties on new cars to zero, nothing more. Yes, the budget gets a little less from customs. But such a measure will boost vehicle imports, which will bring a huge increase in taxes on car sales in the country. And in general, it will revive the car market, bringing prices back at least to pre-Covid levels. Why hasn’t this been done yet? No answer.
Meanwhile, protective levies on new car imports into Russia seem economically inexplicable under the current circumstances. At the very least, this is an act of blatant undermining or unprofessionalism of “responsible jackets” in the country’s government. Or even worse. Since the clearly artificial “drainage” of the Russian car market can be observed daily with the naked eye, and this does not really “fly” for someone in power structures …
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.
