Dealers against the president: how Putin’s order will affect prices in car dealerships
December 27, 2022
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We have a great country, completely free. The president says one thing, and the merchants answer him with the exact opposite. He demands control over the prices of
We have a great country, completely free. The president says one thing, and the merchants answer him with the exact opposite. He demands control over the prices of cars, and they are, as it were, not like that for him. The AvtoVzglyad portal found out what arguments dealers put forward for not fulfilling Vladimir Putin’s order.
We have long been accustomed to the fact that cars of all brands simultaneously increase in price with regularity every few months, and after the New Year – rigorously. On average, price tags grew by 3 – 5%, and in most cases dealers somehow did not try to explain to frustrated customers for what sins they were punished with a ruble. However, it never came to such outright shamelessness as this year.
Only a month and two days have passed since the historic speech of the President of Russia to the head of the Ministry of Industry and Trade Denis Manturov, in which the head of state warned, among other things, that “no one abuses and unreasonable increases the price of car -equipment.” And Denis Valentinovich, immediately orienting himself in the situation, said with a black eye that tools are already being used that allow to keep up with demand, making the purchase of cars more affordable.
Let’s leave it to the minister’s conscience to name unknown instruments, as car prices are still capable of driving even the most faint-hearted to a heart attack. The weighted average price, according to data from the Avtostat agency, has grown by 15% since the beginning of the year, despite the fact that the premium has practically left the market, and AVTOVAZ products, on the contrary, have lost their huge conquered segment. “Even the LADA Granta in the luxury version already costs less than 1 million rubles, although it was not more than 700,000 rubles. And for scarce foreign cars, dealers can, in fact, set any price,” says Pavel Gribov, associate professor at RANEPA.
But much more interesting is the response to the quoted dialogue, which comes from the places, from the lower level of the car market pyramid. Whether dealers have a memory like aquarium fish, or whether they suspect us of this kind of defect, is difficult to judge. But one of the two, that’s for sure. Let me remind you that only a month and two days have passed since the President’s order, and here we are. “Prices for cars will rise, there are no conditions for their reduction. It feels like they will be about 10% higher than current levels,” Andrey Olkhovsky, general manager of the Avtodom Group of Companies, said in an interview with TASS.
Alexey Podshchekoldin, Chairman of the Board of Directors of BN-Motors, comments on this year’s prices, which, as we recall, are held back by certain instruments. The average cost of a car by the end of the year, he believes, will rise to 2.3 million rubles, which is a 20% increase over last year. And price stabilization can only be expected with an increase in production volumes to 1.5 million units. At the current pace of market development, this will happen in two or three years at the earliest.
And the explanation is nevertheless given, tormented and memorized. In everything, of course, malign exchange rates and supply chains are to blame (well, this is generally a panacea for all nitpicking these days). In addition, there is an almost complete lack of supply with every existing demand. It’s funny that Mr. Olkhovsky added that prices for Chinese cars will not fall either, because our friends and practically brothers like to make a profit, simply because it turns out.
And what’s so surprising? It is not at all that the price tags are rewritten again and again, because that is how it is in our country – war is war and lunch is on schedule. Strikingly different. They listened to the president, nodded in agreement, paused – and went about their business as if nothing had happened.
Photo: globallookpress.com
Photo: globallookpress.com
We have long been accustomed to the fact that cars of all brands simultaneously increase in price with regularity every few months, and after the New Year – rigorously. On average, price tags grew by 3 – 5%, and in most cases dealers somehow did not try to explain to frustrated customers for what sins they were punished with a ruble. However, it never came to such outright shamelessness as this year.
Only a month and two days have passed since the historic speech of the President of Russia to the head of the Ministry of Industry and Trade Denis Manturov, in which the head of state warned, among other things, that “no one abuses and unreasonable increases the price of car -equipment.” And Denis Valentinovich, immediately orienting himself in the situation, said with a black eye that tools are already being used that allow to keep up with demand, making the purchase of cars more affordable.
Let’s leave it to the minister’s conscience to name unknown instruments, as car prices are still capable of driving even the most faint-hearted to a heart attack. The weighted average price, according to data from the Avtostat agency, has grown by 15% since the beginning of the year, despite the fact that the premium has practically left the market, and AVTOVAZ products, on the contrary, have lost their huge conquered segment. “Even the LADA Granta in the luxury version already costs less than 1 million rubles, although it was not more than 700,000 rubles. And for scarce foreign cars, dealers can, in fact, set any price,” says Pavel Gribov, associate professor at RANEPA.
But much more interesting is the reaction to the quoted dialogue, which comes from the locals, from the lower level of the car market pyramid. Whether dealers have a memory like aquarium fish, or whether they suspect us of this kind of defect, is difficult to judge. But one of the two, that’s for sure. Let me remind you that only a month and two days have passed since the President’s order, and here we are. “Prices for cars will rise, there are no conditions for their reduction. It feels like they will be about 10% higher than current levels,” Andrey Olkhovsky, general manager of Avtodom Group of Companies, said in an interview with TASS.
Alexey Podshchekoldin, Chairman of the Board of Directors of BN-Motors, comments on this year’s prices, which, as we recall, are held back by certain instruments. The average cost of a car by the end of the year, he believes, will rise to 2.3 million rubles, which is a 20% increase over last year. And price stabilization can only be expected with an increase in production volumes to 1.5 million units. At the current pace of market development, this will happen in two or three years at the earliest.
And the explanation is nevertheless given, tormented and memorized. In everything, of course, malign exchange rates and supply chains are to blame (well, this is generally a panacea for all nitpicking these days). In addition, there is an almost complete lack of supply with every existing demand. It’s funny that Mr. Olkhovsky added that prices for Chinese cars will not fall either, because our friends and practically brothers like to make a profit, simply because it turns out.
And what’s so surprising? It is not at all that the price tags are rewritten again and again, because that is how it is in our country – war is war and lunch is on schedule. Strikingly different. They listened to the president, nodded in agreement, paused – and went about their business as if nothing had happened.
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.