Doubtful abundance of foreign cars: “gray” deliveries did not save the Russian car market from collapse
February 22, 2023
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Has the Russian government done the right thing by allowing parallel imports? Exactly right. It still wasn’t enough to protect the rights of Western companies at the state
Has the Russian government done the right thing by allowing parallel imports? Exactly right. It still wasn’t enough to protect the rights of Western companies at the state level, spitting unilaterally on all contracts and agreements with just one phone call from across the ocean. But did the “grey” stocks have more serious prospects? The Avtovzglyad portal became interested in this issue.
It is clear that the permission of individuals and legal entities to import goods from abroad without the consent of the brand owners was not at all presented as a spit in the morning coffee for foreign companies that faded from Russia faster than their own screams. It was believed that this was one of the obvious ways to support markets that found themselves in a difficult situation due to the unforeseen behavior of “partners”.
Intuition sounds the alarm
The auto industry itself was just one of many subject to government regulation. It’s just that she suffered more than others, both for objective and subjective reasons, which the Avtovzglyad portal has repeatedly written about.
And unfortunately, some time ago, intuition began to whisper that with the “gray” car deliveries, which almost turned “white” this year, not everything is going according to the “newly approved plan”. Why did intuition sound the alarm?
It’s very simple – there were no specific statistics on parallel imports of cars, but optimism went out of hand about how diverse the influx of all kinds of exotic models from all over the world to Russia has become. The real choice of cars from sellers became more and more scarce month after month. In such scenarios, it’s hard not to suspect some trick or, if you will, a discrepancy between the desired and the actual.
The month came out of the fog
Gradually, the fog of ignorance began to lift. To begin with, in October Rossiyskaya Gazeta welcomed the revelations of Lilia Markova, CEO of Gazprombank Autoleasing, who said:
– For official dealers, the parallel import of new cars is still exotic… If in February legal entities and individuals brought into the country about 21.4 thousand cars, then in July – only slightly more than 8 thousand. It is clear that this volume cannot yet compensate for the losses due to the cessation of production by most foreign brands …
Let’s note two points. First, what kind of exotic can it be – after 5 months? And secondly, a tripling of import volumes compared to the period when ‘grey’ imports were generally not encouraged at all.
Then the Avtostat bureau opened its own statistics, which plunged the defenders of the theory of the efficiency of delivering cars “through the porch” into even more frustration. It turns out that in December 2022, only 6,800 cars were purchased, which arrived in the Russian Federation without bypassing official contracts – less than in July, according to Ms. Markova.
This amounted to 12% of the total passenger car and light commercial vehicle market. In January things got even worse: the share of parallel imports dropped to 8% and quantitatively the number of registrations amounted to the ridiculous 4,000 units.
Tug roll failed
The most annoying thing is that such a decline cannot be attributed to the traditional drop in sales in the first month of the year. Indeed, in general, the market in January compared to December shrank by 13%, while parallel imports – by 41%. For this reason, car manufacturers who have remained in Russia look with leniency at their “competitor” and assume that its activities will soon be restricted by the government again. But they do not hold a grudge against their “gray” brothers, and for some reason are even grateful to them.
Thanks to parallel imports, the rules for obtaining “TC Type Approval” were relaxed. In addition, the provision of various models by non-officials in small batches made it possible to assess demand for them without special costs. That is, in general, especially in the case of cars, the parallel import tool did not work. The role is not that of a tugboat, but even a lifebuoy was beyond his powers.
Photo by globallookpress.com
Photo avtovzglyad.ru
It is clear that the permission of individuals and legal entities to import goods from abroad without the consent of the brand owners was not at all presented as a spit in the morning coffee for foreign companies that faded from Russia faster than their own screams. It was believed that this was one of the obvious ways to support markets that found themselves in a difficult situation due to the unforeseen behavior of “partners”.
Intuition sounds the alarm
The auto industry itself was just one of many subject to government regulation. It’s just that she suffered more than others, both for objective and subjective reasons, which the Avtovzglyad portal has repeatedly written about.
And unfortunately, some time ago, intuition began to whisper that with the “gray” car deliveries, which almost turned “white” this year, not everything is going according to the “newly approved plan”. Why did intuition sound the alarm?
It’s very simple – there were no specific statistics on parallel imports of cars, but optimism went out of hand about how diverse the influx of all kinds of exotic models from all over the world to Russia has become. The real choice of cars from sellers became more and more scarce month after month. In such scenarios, it’s hard not to suspect some trick or, if you will, a discrepancy between the desired and the actual.
The month came out of the fog
Gradually, the fog of ignorance began to lift. To begin with, in October Rossiyskaya Gazeta welcomed the revelations of Lilia Markova, CEO of Gazprombank Autoleasing, who said:
– For official dealers, the parallel import of new cars is still exotic… If in February legal entities and individuals brought into the country about 21.4 thousand cars, then in July – only slightly more than 8 thousand. It is clear that this volume cannot yet compensate for the losses due to the cessation of production by most foreign brands …
Let’s note two points. First, what kind of exotic can it be – after 5 months? And secondly, a tripling of import volumes compared to the period when ‘grey’ imports were generally not encouraged at all.
Then the Avtostat bureau opened its own statistics, which plunged the defenders of the theory of the efficiency of delivering cars “through the porch” into even more frustration. It turns out that in December 2022, only 6,800 cars were purchased, which arrived in the Russian Federation without bypassing official contracts – less than in July, according to Ms. Markova.
This amounted to 12% of the total passenger car and light commercial vehicle market. In January things got even worse: the share of parallel imports dropped to 8% and quantitatively the number of registrations amounted to the ridiculous 4,000 units.
Tug roll failed
The most annoying thing is that such a decline cannot be attributed to the traditional drop in sales in the first month of the year. Indeed, in general, the market in January compared to December shrank by 13%, while parallel imports – by 41%. For this reason, car manufacturers who have remained in Russia look leniently at their “competitor” and assume that its activities will soon be restricted by the government again. But they do not hold a grudge against their “gray” brothers, and for some reason are even grateful to them.
Thanks to parallel imports, the rules for obtaining “TC Type Approval” were relaxed. In addition, the provision of various models by non-officials in small batches made it possible to assess demand for them without special costs. That is, in general, especially in the case of cars, the parallel import tool did not work. The role is not that of a tugboat, but even a lifebuoy was beyond his powers.
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.