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Why prices for Chinese cars in Russia will soon rise sharply

  • January 19, 2023
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Almost all experts agree that the domestic market for new cars will grow noticeably in 2023. But nobody promises that cars will not rise in price even more.

Almost all experts agree that the domestic market for new cars will grow noticeably in 2023. But nobody promises that cars will not rise in price even more. And about why we are waiting for the next price jump, the portal “AvtoVzglyad” says.

As it turned out recently, the Ministry of Industry and Trade expects that about half a million foreign cars will be imported into Russia by 2023. Common sense dictates that the more cars delivered to us, the lower their selling price will be. But that’s in theory. The real scenario of events will almost certainly unfold in a different direction for a number of reasons.

Let’s start with the fact that in the vast majority we will have foreign cars from China. There are really many car brands out there and they could flood our market with their products. But the nuance is that the Chinese, for the most part, are greedy and do not want to organize full-fledged exports to Russia. Even those brands that already have a network of dealers here.

Many people prefer not to spend money on the long and expensive process of certifying their models for the domestic market, which includes obtaining a document called “Vehicle Type Approval” (OTTS). Instead, they bring their cars to us “on a simplified schedule”, clearing each car for a private individual. Allegedly, a specific person took it for himself. But this method, in principle, does not imply mass delivery. Try to find at least 1000 Russians ready to take part in such a “semi-scam”, and you will feel all the ambiguity of this venture.

Yes, and Russian habits, judging by the latest data, began to actively “squeeze” the suddenly bred “private ferrymen”. In view of the above, it is difficult to count on a noticeable increase in car imports, which will prevent the deficit from being eliminated. And in general: since the “Chinese” basically monopolize the Russian car market in terms of foreign cars, then who prevents them from tacitly agreeing to the current prices and “holding” them, driving them “from the three ends “can hit” on any gibberish sold here? That’s right – no one. Eat, dear Russians, “rattles” filled with touchscreens from the Celestial Empire at wild prices and rejoice …

Well, the third point that will not lower the cost of imported cars is the global export-import situation. It is no secret that since the end of 2022 the volume of exports from Russia has been steadily declining, while the import of goods to our country is steadily recovering. Our ruble-denominated economy is beginning to receive much less currency, but at the same time more and more dollars, euros and other yuan are being issued.

And this means one thing: in such conditions, “wooden” will soon become much cheaper against the same evergreen or yuan. And since the “Chinese” are imported to us for foreign currency, the ruble prices for these cars in Russian car dealerships will rise steadily.

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As it recently turned out, the Ministry of Industry and Trade expects that about half a million foreign cars will be imported into Russia by 2023. Common sense dictates that the more cars delivered to us, the lower their selling price will be. But that’s in theory. The real scenario of events will almost certainly unfold in a different direction for a number of reasons.

Let’s start with the fact that in the vast majority we will have foreign cars from China. There are really many car brands out there and they could flood our market with their products. But the nuance is that the Chinese, for the most part, are greedy and do not want to organize full-fledged exports to Russia. Even those brands that already have a network of dealers here.

Many people prefer not to spend money on a long and expensive process to certify their models for the domestic market, which includes obtaining a document called “Vehicle Type Approval” (OTTS). Instead, they bring their cars to us “on a simplified schedule”, clearing each car for a private individual. Allegedly, a specific person took it for himself. But this method, in principle, does not imply mass delivery. Try to find at least 1,000 Russians ready to take part in such a “semi-scam”, and you will feel all the ambiguity of this venture.

Yes, and Russian habits, judging by the latest data, began to actively “squeeze” the suddenly bred “private ferrymen”. In view of the above, it is difficult to count on a noticeable increase in car imports, which will prevent the deficit from being eliminated. And in general: since the “Chinese” basically monopolize the Russian car market in terms of foreign cars, then who prevents them from tacitly agreeing to current prices and “holding” them, driving them “from the three ends “can hit” on any gibberish sold here? That’s right – no one. Eat, dear Russians, “rattles” filled with touchscreens from the Celestial Empire at wild prices and rejoice …

Well, the third point that will not lower the cost of imported cars is the global export-import situation. It is no secret that since the end of 2022 the volume of exports from Russia has been steadily declining, while the import of goods to our country is steadily recovering. Our ruble-denominated economy is beginning to receive much less currency, but at the same time more and more dollars, euros and other yuan are being issued.

And this means one thing: in such conditions, “wooden” will soon become much cheaper against the same evergreen or yuan. And since the “Chinese” are imported to us for foreign currency, the ruble prices for these cars in Russian car dealerships will rise steadily.

Source: Avto Vzglyad

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