9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
If earlier the Chinese auto industry was known to our brother for its exceptionally cheap “carts”, although they caused complaints about quality, now the “heavenly” models have grown
While the collective West has not instituted secondary sanctions against Chinese automakers, which are actively attacking the Russian market, Asians continue to rapidly fill the country’s automotive sector, which has been freed from other foreign companies. In addition, they intend to win positions not completely, but point by point. In addition, it saves domestic buyers the opportunity to buy cheap cars. As it was with Lifan, for example, which flooded Russia with its models and secured absolute leadership among all Chinese brands, holding the brand for several years in a row.
There is always a LADA for the mass consumer, and for those who want to drive foreign cars, there is nothing left but to overpay at exorbitant prices. Yes, the guys from China decided to conquer the market “not in bulk”, but because of high margins. As has always been done by brands that operate in the premium segment. In other words, the Chinese want to make a profit not at the expense of huge sales volumes, but because of the high cost of their products. Simply put, as long as there is no active action on the part of Western political zealots, Asians will puke that there is urine.
The second important point is the fact that the “heavenly” brands have learned the tricks of business typical for our country. Yes, import duties, excise duties, recycling charges and VAT have increased, which is why you wonder why tow cheap cars to Russia, working, if not at a loss, as the same Koreans have been doing for many years, then at least with a minimal margin? On top of that come the increased logistics costs, not to mention the dealer margin of 10-20%.
Therefore, it is much easier for the Chinese to compete in much more profitable segments, for example SUVs, where even the once affordable models have soared in value. And not only because of the above factors, but also because of the shortage of cars, as well as the banal greed of sellers. We remember that the activities of the latter are still not regulated by anyone in our country. Importers and dealers put prices on their products according to the method “I want as much, the rest is on the drum”.
It is likely that local production launched in Russia can partially mitigate the situation, but one should not hope for a sharp reduction in the cost of cars produced by local factories. Localization makes it possible for “foreign” car manufacturers to receive additional subsidies for the supply of parts, but as practice shows, this is not hot or cold for the end consumer.
While the collective West has not instituted secondary sanctions against Chinese automakers, which are actively attacking the Russian market, Asians continue to rapidly fill the country’s automotive sector, which has been freed from other foreign companies. In addition, they intend to win positions not completely, but point by point. In addition, it saves domestic buyers the opportunity to buy cheap cars. As it was with Lifan, for example, which flooded Russia with its models and secured absolute leadership among all Chinese brands, holding the brand for several years in a row.
There is always a LADA for the mass consumer, and for those who want to drive foreign cars, there is nothing left but to overpay at exorbitant prices. Yes, the guys from China decided to conquer the market “not in bulk”, but because of high margins. As has always been done by brands that operate in the premium segment. In other words, the Chinese want to make a profit not at the expense of huge sales volumes, but because of the high cost of their products. Simply put, as long as there is no active action on the part of Western political zealots, Asians will puke that there is urine.
The second important point is the fact that the “heavenly” brands have learned the tricks of business typical for our country. Yes, import duties, excise duties, recycling charges and VAT have increased, which is why you wonder why tow cheap cars to Russia, working, if not at a loss, as the same Koreans have been doing for many years, then at least with a minimal margin? On top of that come the increased logistics costs, not to mention the dealer margin of 10-20%.
Therefore, it is much easier for the Chinese to compete in much more profitable segments, for example SUVs, where even the once affordable models have soared in value. And not only because of the above factors, but also because of the shortage of cars, as well as the banal greed of sellers. We remember that the activities of the latter are still not regulated by anyone in our country. Importers and dealers put prices on their products according to the method “I want as much, the rest is on the drum”.
It is likely that local production launched in Russia can partially mitigate the situation, but one should not hope for a sharp reduction in the cost of cars produced by local factories. Localization makes it possible for “foreign” car manufacturers to receive additional subsidies for the supply of parts, but as practice shows, this is not hot or cold for the end 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.
