site stats
Sunday, May 29, 2022
HomeLatest NewsWhat are the prospects for the used foreign car market?

What are the prospects for the used foreign car market?

A group of experts attached to one of the factions of the Duma sent proposals to the Russian government to stimulate the car market. As State Duma deputy Yaroslav Nilov explains, this business is in crisis: there is a huge shortage of cars, moreover, prices for new cars have doubled, and sales have increased.

Fees – for and against

According to Nilov, a series of temporary measures can save the situation: a moratorium on recycling fees for car plants, the abolition of restrictive requirements for the technical emission standard – the Euro-5 standard, and, finally, the reduction o complete abolition of customs duties for natural and legal persons. The latter, however, with reservations: a person (or legal entity) can bring no more than three cars a year, they must be no more than ten years old and no more than ten million rubles.

– A year and a half should be enough for our auto industry to get back on its feet and stabilize prices with proper support. The abolition of the recycling fee will give factories time and working capital to launch the production of domestic components and will reduce prices. A moratorium on the green standard and a reduction in import duties are needed to fill our market with high-quality foreign cars. Therefore, we will gradually close the domestic demand for both cars and parts, believes the deputy.

This news was of special interest to the inhabitants of Primorye, who for 20 years, starting from the middle of the last decade of the last century, proudly or ironically, called their region “the country of the victorious Japanese automobile industry”. “Vladivostok was the main port through which used Japanese cars left for Russia, from here they went to the Far East and Siberian regions. It was a whole industry that fed tens or even hundreds of thousands of people in different parts of the world. country. “In the appendix” were the sale and resale of cars, spare parts, logistics services, car repair. Partly because of all this, Vladivostok went through the difficult 1990s and 2000s.

But will the government take such measures? Associate Professor of the Department of the Far Eastern Federal University, Candidate of Economics Maxim Krivelevich is pessimistic.

– If car import duties are reduced or abolished, the consequences for us will be extremely positive. In the volume of the Russian budget, these are insignificant amounts, for example, numbers after the decimal point. That is, the budget will not suffer losses. But the economic growth of the Far East will be stimulated in the most powerful way. A wave of “social optimism” will be felt, the birth rate will begin to rise and crime will decrease. The synergies will be enormous, inflation will come even lower, since the cost of buying, maintaining and maintaining vehicles in a country the size of ours is an important part of the cost of any product. But this is not worth waiting for, since all our government’s previous actions on taxes and fees are unsubstantiated, he believes.

Market value

… The “Green Corner” car market, once one of the sights of Vladivostok and was considered the largest car market in the country, has noticeably lost ground today. Rare buyers wander through the rows of shiny cars, sellers are downright bored. They say that spring is usually the peak of sales, but this year is different. Some revival was seen in late February and early March, and now sellers are lowering prices and ready to continue doing so.

The observation of Zelenka sellers is confirmed by Alexei Grishin, an analyst at the Drome car portal, which is visited daily by 2.5 million people.

According to the expert, used car sales from January to March this year increased by 1.4 percent compared to the same period in 2021. Their peak also occurred in late February – early March. By February 25, almost every second seller increased the price by 20-30 percent, and on February 26 and 27 they slightly reduced it. As a result, used car prices in Russia increased by 13 percent in the last week of this month.

– The Russians rushed to find where they can invest money to somehow save them, – he says. – In March 2022, the demand increased one and a half times compared to the interest of the buyers in March of last year. The priority was cars worth up to 600 thousand rubles. But at the end of March, we don’t see rapid growth in sales. This is explained by the fact that the offer decreased by ten percent – some of the sellers left the market. Private dealers removed the ads, not sure if they could buy anything worthwhile with the proceeds from the sale of the car. Now the used car market is still extremely turbulent. Compared to last year, all used cars have gone up in price. The cost grew in proportion to the growth of the exchange rate, the peak values ​​occurred in the first half of March. With the strengthening of the ruble, we see a slight downward correction in prices. The average price of a used car put up for sale in Russia has decreased by ten percent since the end of March and, as of April 20, amounted to 1.05 million rubles.

Open prospects?

But in the companies that are dedicated to buying second-hand cars in Japan, on the contrary, they are registering an increase in demand right now.

– Due to the sharp change in the dollar and euro rates, possible problems with payment and delivery, our company did not participate in the Japanese auctions from February 24 to April 4. Now everything has improved, you can make payments the same way as before, except maybe only through banks that are not under sanctions. The ships that carry us cars are sailing. Now it is profitable to buy cars, the euro is depreciating, and the Japanese, who lost income because we did not buy their cars, lowered their prices a little. Every day, five to seven people come to us with orders – this is more than usual, an RG correspondent at one of the companies was told.

Meanwhile, the Drome portal completed a survey on the topic: “Crisis in the car market: a reason for the revival of right-hand drive?” 31 percent of motorists believe that the popularity of “right-hand drive” will grow, 43 percent believe that the revival of demand for Japanese used cars will be greatly hampered by the high exchange rate, 17 percent see difficulties due to tariffs and nine percent – because of sanctions.

– With the current uncertainty of the exchange rate and the customs duties that depend on it, the importation of used foreign cars into our country will become economically inexpedient. However, if the tariffs are set in rubles at the February 2022 exchange rate, the import of right-hand drive cars will grow and may compete with carmakers that have left the market, Alexei Grishin believes.



Source: rg.ru

*The article has been translated based on the content of rg.ru. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!



RELATED ARTICLES

Most Popular

Recent Comments

%d bloggers like this: