April 20, 2025
Auto

Putin is concerned, but the Russian auto industry is right on the mark

  • January 12, 2023
  • 0

Something is wrong in the Kingdom of Denmark – that is, in the Russian Federation – with prices. Quite recently, about three months ago, Vladimir Putin directly warned

Putin is concerned, but the Russian auto industry is right on the mark
Something is wrong in the Kingdom of Denmark – that is, in the Russian Federation – with prices. Quite recently, about three months ago, Vladimir Putin directly warned the Ministry of Industry and Trade in the person of the cunning Mr. Manturov about the impermissibility of unreasonably raising the cost of cars. Apparently, the warning to Denis Valentinovich, as they say, did not pass. Portal “AutoVzglyad” follows the developments.

The auto industry doesn’t really respond to menacing cries from the top of power. And what, in fact, should he worry about if highly respected and high-ranking people are behind him? After all, Vladimir Vladimirovich did not have time to address the head of the Ministry of Industry and Trade, Denis Manturov, with his warning, when he immediately received an answer from him in the spirit of “Everything is fine, beautiful marquise”, although nothing good happened and it was not planned. In other words, every question, every answer.

The New Year began with a repeated appeal from the President to the same Mr. Manturov. According to the site kremlin.ru, the head of state could not stand it at the government meeting and asked the test subject: “Why are you playing the fool anyway?” True, this time the deputy prime minister was making fun of a slightly different area – in the aircraft industry. But this doesn’t rule out the possibility that he could dabble in other industries under his jurisdiction. For example, in the same automotive industry, where the situation remains disastrous.

The RT channel provides preliminary estimates from Rosstat and the Ministry of Economic Development on price dynamics in 2022 for various categories of goods. For products, their growth averaged 10.34%, for medicines – 11%, for non-food products – 12.55%. But car prices have rocketed into space – statisticians believe that vehicles have increased in price by 30-39%. Given the tendency of departments to underestimate negative trends by all means, these numbers can be assumed to be even higher.

It is frustrating that hardly anyone is upset by this turn of events. Take, for example, the strategy for the development of the automotive industry of the Russian Federation until 2035, developed in the summer. According to the agency Interfax, the document has not undergone significant changes. Indeed, what is radicalism here? From the final version “only” evaporated the amount of the required investment in R&D and the organization of component production, originally planned at an amount of 2.7 trillion rubles. rubles, which the company had to provide with state aid.

In an instant, it turned into…300 billion federal budget allocations. The company has gone under. “Go, go, horse,” remarked the great strategist, “this is none of your business!” That is, the most necessary expense, without which our automotive industry will never become anything valuable, has been cut completely.

But with another article they treated much more loyally. The amount allocated for the same period to stimulate demand fell from 500-600 billion rubles to only 26 billion rubles per year, which amounts to 338 billion over 13 years. And this money will be spent on goals that are at least dubious and certainly never strategic: preferential car loans and leasing, boosting sales of gas and electric vehicles.

And despite the frank act of castration, the main task of the strategy remains to create models with at least 80% localization by 2025, bringing the share of electric passenger cars to 20-30% by 2035. But this is not the most – how to say it softly? – interesting: the export of passenger cars in 2035 will be 15%! And they go to the countries of the EU, Africa, Asia and Latin America.

Such a strategy is unlikely to achieve these goals, nor should we expect a fall in car prices. On the contrary, they will continue to grow as the technology development of the industry has again been ignored by senior executives in the interest of resellers. True, in a conversation with representatives of Gazeta.ru, the head of the analysis bureau Russian Automotive Market Research, Tatyana Arabadzhi, assures herself: “If the exchange rate of the ruble is stable, car prices will not rise. Dealers are already saying that there are fewer people willing to buy even popular cars as their prices have risen significantly. That’s right, nobody needs these cars for free if we all get on horses together.

However, all is not yet lost. On January 10, Vladimir Putin did not meet with Manturov, but with the head of the Federal Antimonopoly Service, Maxim Shaskolsky. According to RT, he reported: “We have conducted a number of investigations, filed cases against metallurgists, against manufacturers of materials from wood, aerated concrete, glass. Investigations are underway. We can say that this is also the reason why the prices of a number of building materials are falling.”

Well, it was about time this department moved into the automotive business. Perhaps it will at least lead to taking into account not only the interests of the industrial magnates, but also the state and the people who live there?

Photo by globallookpress.com
Photo by globallookpress.com

The auto industry doesn’t really respond to menacing cries from the top of power. And what, in fact, should he worry about if highly respected and high-ranking people are behind him? After all, Vladimir Vladimirovich did not have time to address the head of the Ministry of Industry and Trade, Denis Manturov, with his warning, when he immediately received an answer from him in the spirit of “Everything is fine, beautiful marquise”, although nothing good happened and it was not planned. In other words, every question, every answer.

The New Year began with a repeated appeal from the President to the same Mr. Manturov. According to the site kremlin.ru, the head of state could not stand it at the government meeting and asked the test subject: “Why are you playing the fool anyway?” True, this time the deputy prime minister was making fun of a slightly different area – in the aircraft industry. But this doesn’t rule out the possibility that he could dabble in other industries under his jurisdiction. For example, in the same automotive industry, where the situation remains disastrous.

The RT channel provides preliminary estimates from Rosstat and the Ministry of Economic Development on price dynamics in 2022 for various categories of goods. For products, their growth averaged 10.34%, for medicines – 11%, for non-food products – 12.55%. But car prices have rocketed into space – statisticians believe that vehicles have increased in price by 30-39%. Given the tendency of departments to underestimate negative trends by all means, these numbers can be assumed to be even higher.

It is frustrating that hardly anyone is upset by this turn of events. Take, for example, the strategy for the development of the automotive industry of the Russian Federation until 2035, developed in the summer. According to the agency Interfax, the document has not undergone significant changes. Indeed, what is radicalism here? From the final version “only” evaporated the amount of the required investment in R&D and the organization of component production, originally planned at an amount of 2.7 trillion rubles. rubles, which the company had to provide with state aid.

In an instant, it turned into…300 billion federal budget allocations. The company has gone under. “Go, go, horse,” remarked the great strategist, “this is none of your business!” That is, the most necessary expense, without which our automotive industry will never become anything valuable, has been cut completely.

But with another article they treated much more loyally. The amount allocated for the same period to stimulate demand fell from 500-600 billion rubles to only 26 billion rubles per year, which amounts to 338 billion over 13 years. And this money will be spent on goals that are at least dubious and certainly never strategic: preferential car loans and leasing, boosting sales of gas and electric vehicles.

And despite the frank act of castration, the main task of the strategy remains to create models with at least 80% localization by 2025, bringing the share of electric passenger cars to 20-30% by 2035. But this is not the most – how to say it softly? – interesting: the export of passenger cars in 2035 will be 15%! And they go to the countries of the EU, Africa, Asia and Latin America.

Such a strategy is unlikely to achieve these goals, nor should we expect a fall in car prices. On the contrary, they will continue to grow as the technology development of the industry has again been ignored by senior executives in the interest of resellers. True, in a conversation with representatives of Gazeta.ru, the head of the analysis bureau Russian Automotive Market Research, Tatyana Arabadzhi, assures herself: “If the exchange rate of the ruble is stable, car prices will not rise. Dealers are already saying that there are fewer people willing to buy even popular cars as their prices have risen significantly. That’s right, no one needs these cars for free when we all get on horses together.

However, all is not yet lost. On January 10, Vladimir Putin did not meet with Manturov, but with the head of the Federal Antimonopoly Service, Maxim Shaskolsky. According to RT, he reported: “We have conducted a number of investigations, filed cases against metallurgists, against manufacturers of materials from wood, aerated concrete, glass. Investigations are underway. We can say that this is also the reason why the prices of a number of building materials are falling.”

Well, it was about time this department moved into the automotive business. Perhaps it will at least lead to taking into account not only the interests of the industrial magnates, but also the state and the people who live there?

Source: Avto Vzglyad

Leave a Reply

Your email address will not be published. Required fields are marked *