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How President Vladimir Putin’s message on February 21 will affect the Russian car market

  • February 15, 2023
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The closer the date of the promised speech of the Russian commander-in-chief before the Federal Assembly, the more nervously they discuss the mysterious contents in the media and

How President Vladimir Putin’s message on February 21 will affect the Russian car market
The closer the date of the promised speech of the Russian commander-in-chief before the Federal Assembly, the more nervously they discuss the mysterious contents in the media and Telegram channels. The AvtoVzglyad portal tried to predict the possible consequences of Vladimir Putin’s future speech for the Russian auto industry.

Russian business and political parties are waiting with growing nervousness for the President of the Russian Federation to deliver his weighty word to the Federal Assembly on February 21 at Moscow’s Gostiny Dvor. For the most part, ordinary citizens are apolitically unconcerned about this. And that’s okay. Although, as a rule, the consequences of the decisions and actions of the head of our country always “come” even to people who are the most distant from high state policy.

Some who are “interested” in what is happening near the Kremlin Olympus believe that GDP will not tell us anything special this time. He will delve into his favorite story, reassure that “everything is going according to plan” and leave the stage on this optimistic note. In this case, as we all understand, the Russian auto industry will continue to grow in a kind of “swamp” of the Iranian type. Without any breakthrough.

But some domestic enterprises will learn how to supply components manufactured in Russia to AVTOVAZ and UAZ. This provides the opportunity to endlessly clone the platforms and models of cars available to Russian car companies. And Chinese brands will continue to “economize” our fellow citizens, selling them their wonderful “carts for oversized smartphones” at exorbitant prices. Such a scenario would suit many, presumably.

However, there is a very different than zero probability that Putin will “burn with napalm” in his speech – in a figurative sense, of course. But the effect will be no less serious. Some political scientists believe that in Russia the president can declare a regime of anti-terrorist operations against the collective ‘West’. Or enter martial law with the resumption of waves of mobilization. Or even report on the decision to use a “powerful bomb” against opponents. In general, everything is terrible. All these horrors do not bode well for the country’s auto industry and car market.

First of all, because in fact it will mean not a declared, but a very real and widespread transition of the entire economy and public life to a military base. In a country that is at war in a mature way, by definition there cannot be a car market in the usual sense for us. For example, the same AvtoVAZ could start producing cars only for the needs of government agencies. And manufacturers of auto parts will be ordered to sound spare parts for military equipment. Under the conditions of mobilization from Russia, new hundreds of thousands of fellow citizens can be torn apart again. Which will further decrease the demand for cars.

In general, President Putin’s February 21 message may turn into an epitaph for the Russian car market. We naturally hope for the best and would like to avoid the described scenario. But something tells me hope is futile.

globallookpress.com’s photo

Russian business and political parties are waiting with growing nervousness for the President of the Russian Federation to deliver his weighty word to the Federal Assembly on February 21 at Moscow’s Gostiny Dvor. For the most part, ordinary citizens are apolitically unconcerned about this. And that’s okay. Although, as a rule, the consequences of the decisions and actions of the head of our country always “come” even to people who are the most distant from high state policy.

Some who are “interested” in what is happening near the Kremlin Olympus believe that GDP will not tell us anything special this time. He will delve into his favorite story, reassure that “everything is going according to plan” and leave the stage on this optimistic note. In this case, as we all understand, the Russian auto industry will continue to grow in a kind of “swamp” of the Iranian type. Without any breakthrough.

But some domestic enterprises will learn how to supply components manufactured in Russia to AVTOVAZ and UAZ. This provides the opportunity to endlessly clone the platforms and models of cars available to Russian car companies. And Chinese brands will continue to “economize” our fellow citizens, selling them their wonderful “carts for oversized smartphones” at exorbitant prices. Such a scenario would suit many, presumably.

However, there is a very different than zero probability that Putin will “burn with napalm” in his speech – in a figurative sense, of course. But the effect will be no less serious. Some political scientists believe that in Russia the president can declare a regime of anti-terrorist operations against the collective ‘West’. Or enter martial law with the resumption of waves of mobilization. And even to report on the decision to use a “powerful bomb” on opponents. In general, everything is terrible. All these horrors do not bode well for the country’s auto industry and car market.

First of all, because in fact it will mean not a declared, but a very real and widespread transition of the entire economy and public life to a military base. In a country that is at war in a mature way, by definition there cannot be a car market in the usual sense for us. For example, the same AvtoVAZ could start producing cars only for the needs of government agencies. And manufacturers of auto parts will be ordered to sound spare parts for military equipment. Under the conditions of mobilization from Russia, new hundreds of thousands of fellow citizens can be torn apart again. Which will further decrease the demand for cars.

In general, President Putin’s February 21 message may turn into an epitaph for the Russian car market. We naturally hope for the best and would like to avoid the described scenario. But something tells me hope is futile.

Source: Avto Vzglyad

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