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The obvious indifference of Chinese car companies to the idea of filling all the niches left in Russia by departed competitors in the blink of an eye is
With a hot, burning tongue and gum news nut in his mouth, none other than Boris Titov, chairman of the Russian-Chinese Committee for Friendship, Peace and Development, came to the respectable audience. In his Telegram channel, he said that the Association of Chinese Automakers had already been established in Russia with the participation of the committee, and also expressed the hope that with its help it would become easier to solve regulatory problems.
Furthermore, in an interview with TASS, he stated the following: “Chinese cars, against the background of the departure of Western manufacturers and the problems of the domestic auto industry, are filling the Russian market. But this is happening chaotically, non-systemically… The main thing is investments in the production of cars in the Russian Federation.”
I would just take it and subscribe to every word of Boris Titov. Unless I replace ‘chaotic and unsystematic’ with ‘slow and unwilling’. The AvtoVzglyad portal has already written about the reasons for this behavior of Chinese companies. First of all, the Russian market is not as big as the European, American or domestic China itself. Secondly, why bother with the organization of production, if you can just deal with pure export, selling cars with a terrible shortage of cars at crazy prices. And thirdly, no one canceled the chance to get lyuli from the hegemon for violating sanctions.
To somehow stir up the Asian partners, Russia decided to follow the tried and true path – hassle-free, but ineffective. Namely, to create some kind of public association that would ensure an attractive image of the country in the eyes of Chinese investors. For the assignment of this case to the specialized Ministry of Industry and Commerce could with great probability lead to exactly the opposite result. But somehow it is necessary to save the auto industry – delay is like death.
So what are the goals of the newborn association? According to the same Titov, it is designed to “properly build relationships with the government, with new investors on the use of production sites, investment conditions, localization requirements.” It is not surprising that the largest Chinese car brands and Russian importers immediately joined those eager for the above benefits.
I don’t think the organizers of this venture had malicious intent. We won’t repeat the teeth-grinding road to hell slogan, but chances are it’s more than applicable in this case. All these associations tend either to quickly turn into a pointless talking club or to become an instrument for coordinating the economic policies of companies operating in the same field.
If foreign producers, who will soon claim a dominant position in the market, unite under one roof with domestic importers, neither the consumer nor the country can expect anything good from it. Especially if these manufacturers undoubtedly have power: by the end of 2022, China shipped 2,529 million cars abroad, becoming the second largest exporter in the world after Japan.
The result could be strong pressure on the Russian government to obtain the greatest possible benefits while meeting the minimum possible obligations. Will the gallant Ministry of Industry and Commerce, guided by its no less gallant leadership, withstand such an attack? And who will prevent the members of the association from adjusting their pricing policy among themselves and setting monopoly prices? Unless the FAS finally deigns to turn its attention to the auto industry, which also has certain misgivings.
It is therefore impossible to completely dispel the suspicion that instead of the announced systematic and effective promotion of new car brands to the domestic consumer, there will be a vulgar self-interest pressure to the detriment of the pocket of the same domestic consumer.
With a hot, burning tongue and gum news nut in his mouth, none other than Boris Titov, chairman of the Russian-Chinese Committee for Friendship, Peace and Development, came to the respectable audience. In his Telegram channel, he said that the Association of Chinese Automakers had already been established in Russia with the participation of the committee, and also expressed the hope that with its help it would become easier to solve regulatory problems.
Furthermore, in an interview with TASS, he stated the following: “Chinese cars, against the background of the departure of Western manufacturers and the problems of the domestic auto industry, are filling the Russian market. But this is happening chaotically, non-systemically… The main thing is investments in the production of cars in the Russian Federation.”
I would just take it and subscribe to every word of Boris Titov. Unless I replace ‘chaotic and unsystematic’ with ‘slow and unwilling’. The AvtoVzglyad portal has already written about the reasons for this behavior of Chinese companies. First of all, the Russian market is not as big as the European, American or domestic China itself. Secondly, why bother with the organization of production when you can just deal with pure export, selling horribly short cars at crazy prices. And thirdly, no one canceled the chance to get lyuli from the hegemon for violating sanctions.
To somehow stir up the Asian partners, Russia decided to follow the tried and true path – hassle-free, but ineffective. Namely, to create some kind of public association that would ensure an attractive image of the country in the eyes of Chinese investors. For the assignment of this case to the specialized Ministry of Industry and Commerce could with great probability lead to exactly the opposite result. But somehow it is necessary to save the auto industry – delay is like death.
So what are the goals of the newborn association? According to the same Titov, it is designed to “properly build relationships with the government, with new investors on the use of production sites, investment conditions, localization requirements.” It is not surprising that the largest Chinese car brands and Russian importers immediately joined those eager for the above benefits.
I don’t think the organizers of this venture had malicious intent. We won’t repeat the teeth-grinding road to hell slogan, but chances are it’s more than applicable in this case. All these associations tend either to quickly turn into a pointless talking club or to become an instrument for coordinating the economic policies of companies operating in the same field.
If foreign producers, who will soon claim a dominant position in the market, unite under one roof with domestic importers, neither the consumer nor the country can expect anything good from it. Especially if these manufacturers undoubtedly have power: by the end of 2022, China shipped 2,529 million cars abroad, becoming the second largest exporter in the world after Japan.
The result could be strong pressure on the Russian government to obtain the greatest possible benefits while meeting the minimum possible obligations. Will the brave Ministry of Industry and Commerce, led by its no less brave leaders, withstand such an attack? And who prevents the members of the association from adjusting their pricing policy among themselves and setting monopoly prices? Unless the FAS finally deigns to turn its attention to the auto industry, which also has certain misgivings.
It is therefore impossible to completely dispel the suspicion that instead of the announced systematic and effective promotion of new car brands to the domestic consumer, there will be a vulgar self-interest pressure to the detriment of the pocket of the same domestic consumer.
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.
