A game without rules: prices for new cars in Russia remain prohibitive
- February 17, 2023
- 0
The past year has changed the entire financial reality of Russia, but not everyone has suffered from a new page in Russian history. Some even got rich and
The past year has changed the entire financial reality of Russia, but not everyone has suffered from a new page in Russian history. Some even got rich and quickly rebuilt their businesses to the new reality. Car dealers, for example. The AvtoVzglyad portal explored the details of the new car sales and pricing schedule for 2023.
The automotive business conference ForAuto-23, which recently took place in Moscow, was full of theories and predictions, but also outlined quite specific outlines, according to which the Russian market will live in the coming year. The representative offices of foreign car brands that remained in the country – mostly Chinese – did not hide their celebration: the incredible and unexpected magic of politics “blew away” all – in general, all without exception – competitors of the huge market , enabling them to achieve long-term goals in a few months. Miracle, nothing else.
But not only official distributors rejoiced that evening, but also their colleagues from Russian dealers: the yoke of official car manufacturers has fallen, from now on there is no need to follow the rules and regulations, demonstrate performance and adhere to the pricing policy lowered from above. For as much as I want – for so much I sell. And they take it without bargaining! In a nightmare you will not see LADA Vesta for 2.7 million rubles, but in Russian DC – please.
The result of the mass exodus of brands has been a global change in the structure of the market itself: as in the 1990s, the dealer now assumes the function of representation, dictates both price and warranty policies, and chooses suppliers of spare parts and consumables . Of course not at a loss.
As a result, the usual level of service and repair can only be obtained from Chinese brands, and all four-wheeled classics enter the “gray zone”. Then why do you go to dealers? And here everything is simple – thanks to old connections, they still have spare parts supplied via parallel import.
Dealers, by the way, also have cars – and for every taste and color. Only the cost is outrageous. Sellers do not hide: the modern Russian car market is the most expensive in the world. Nowhere in the world do they pay more for the right to own a vehicle than in Russia. Why? Yes, because sellers no longer need to sell many cars – it is more profitable to get the marginal benefit on each. Well, they don’t produce them, there’s no point for them chasing quantity.
The conference participants noted that supply and demand are now equal, leveled off, but changes in the greed score should not be expected: it is beneficial for car dealers to maintain a shortage, so that the price of their goods remains consistently high , and the buyer does not hesitate and demands discounts. Daring and brutal? Anyway, what did you actually expect from a market where there are no rules anymore?
Photo by globallookpress.com
The automotive business conference ForAuto-23, which recently took place in Moscow, was full of theories and predictions, but also outlined quite specific outlines, according to which the Russian market will live in the coming year. The representative offices of foreign car brands that remained in the country – mostly Chinese – did not hide their celebration: the incredible and unexpected magic of politics “blew away” all – in general, all without exception – competitors of the huge market , enabling them to achieve long-term goals in a few months. Miracle, nothing else.
But not only official distributors rejoiced that evening, but also their colleagues from Russian dealers: the yoke of official car manufacturers has fallen, from now on it is not necessary to follow the rules and regulations, demonstrate performance and adhere to the pricing policy lowered from above. For as much as I want – for so much I sell. And they take it without bargaining! In a nightmare you will not see LADA Vesta for 2.7 million rubles, but in Russian DC – please.
The result of the mass exodus of brands has been a global change in the structure of the market itself: as in the 1990s, the dealer now assumes the function of representation, dictates both price and warranty policies, and chooses suppliers of spare parts and consumables . Of course not at a loss.
As a result, the usual level of service and repair can only be obtained from Chinese brands, and all four-wheeled classics go to the “gray zone”. Then why do you go to dealers? And here everything is simple – thanks to old connections, they still have spare parts supplied via parallel import.
Dealers, by the way, also have cars – and for every taste and color. Only the cost is outrageous. Sellers do not hide: the modern Russian car market is the most expensive in the world. Nowhere in the world do they pay more for the right to own a vehicle than in Russia. Why? Yes, because sellers no longer need to sell many cars – it is more profitable to get the marginal benefit on each. Well, they don’t produce them, there’s no point for them chasing quantity.
The conference participants noted that supply and demand are now equal, leveled off, but changes in the greed score should not be expected: it is beneficial for car dealers to maintain a shortage, so that the price of their product remains consistently high, and the buyer does not hesitate and does not demand discounts. Daring and brutal? Anyway, what did you actually expect from a market where there are no rules anymore?
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.
