Chery has increased the recommended retail prices (RRP) for the entire model range from April 11, Chery told socialbites.ca, the press service of the Russian representation.
“We revised the size of the RRP and the amount of benefits for marketing programs. The cost of the car is set at 40-80 thousand rubles, depending on the model, an official representative of the company told socialbites.ca.
Chery also noted that the amount of bonuses available to the buyer when buying a car on credit and returning an old car for trade-in is reduced.
“We will readjust prices in case of changes in the foreign exchange market. In this regard, we are as flexible as possible and respond promptly to any market changes,” stressed Chery’s press service.
the previous day rose Prices for six of the nine Chinese Changan models offered in Russia.
Their price increased by 20-150 thousand rubles.
socialbites.ca contacted the Russian offices of Chinese car brands with questions about a possible price increase due to the increase in the exchange rate. Geely declined to comment, with no response from other major players at the time of broadcast. But the cost of Geely cars could be adjusted as early as this week, according to a socialbites.ca source in the dealership community.
Since the beginning of March, the ruble has weakened by almost 10% against the US dollar. According to the Central Bank of the Russian Federation, the official exchange rate on March 1 was 74.9 rubles per dollar, while on April 11 it was set at 82.2 rubles per dollar. In April, the dollar rate added 5 rubles.
The price of imports increased
Dmitry Rogov, founder of RogovMobil, which specializes in delivering cars from abroad, told socialbites.ca that sellers who specifically import cars from abroad react instantly to changes in the exchange rate.
“The price of cars brought from abroad has increased in proportion to the depreciation of the ruble, and those that are already in Russia, because if they are sold cheaper, new ones cannot be bought.
The dollar rose 10 percent and prices rose by the same amount,” he said.
Since December, the ruble has already fallen by 20% and car prices have risen in the same range. According to Rogov, the current decline in the ruble pushes customers to buy the most popular options imported from abroad.
“The increase in the exchange rate against the ruble directly affects the price dynamics. When it comes to parallel imports, prices change instantly.
Prices have increased 10% in the last two weeks,
– Renat Tyukteev, head of retail sales of the Avilon automobile group, agrees in an interview with socialbites.ca.
According to him, further price adjustments for Chinese cars are also possible if official importers do not hedge the risks. He believes that prices in other segments will remain at the current level.
According to Avilon’s Renat Tyukteev, prices will continue to rise and there will be a shortage of cars for all brands in the first half of the year.
“If we look at the market for officially delivered cars, especially Chinese cars, we see that prices are rising more stagnantly.
Here, the price increases in the last two weeks ranged between 2-3%.
Importers traditionally smooth out sharp fluctuations in exchange rates at the expense of their own resources,” Tyukteev stressed.
started to buy
Andrey Olkhovsky, managing director of the Avtodom group of companies, told socialbites.ca that the weakening of the ruble stimulated sales, the demand for the most expensive cars at the moment is increasing. The source added that Avtodom maintains current ruble prices for cars.
“There is no point in raising prices, we are working with a debt load in rubles and a change in the exchange rate does not change our balance sheet.
Therefore, of course, we will purchase new cars, taking into account the new trend, but this will only be an increase in working capital,” he said.
Olkhovsky explained.
According to Dmitry Rogov, within three weeks or a month after the fall of the ruble, customers’ interest in investing their ruble savings on a car increases.
Chinese brands have time
Experts believe that if cars supplied through parallel import or privately directly depend on the exchange rate, the representative offices of Chinese brands that officially operate in Russia have the opportunity to limit price increases.
“For companies like Chery, Geely and Haval, the pricing policy will depend on their wishes because the margins of safety are quite high.
“The prices here are much higher than in China, and the margins for deliveries to Russia are very high,” he said.
Oleg Moseev, founder of the Automarketologist project, shared his opinion with socialbites.ca.
These companies say they will cut prices or hold promotions if they realize that a change in marketing policy will undermine their sales plans. Moseev argues that the cost of cars imported through parallel imports directly follows the exchange rate, because participants in this market segment do not play “for a long time.”
Local will not be cheap
Igor Morzharetto, partner of the Avtostat analytical agency, says that the depreciation of the ruble could lead to an increase in the prices of cars of domestic brands, which still widely use imported components.
“Both ours and our Chinese companies can afford to keep the price a little bit by not following the exchange rate directly. Chinese brands have a fairly large margin and can be cut a little. AvtoVAZ will also keep prices within the framework of social duty,” expects Morzharetto.
He added that the market is still weak and risks losing a buyer if prices rise sharply.
“If the rate does not recover, AvtoVAZ will also have to raise prices, as its cars use imported components. Oleg Moseev, the founder of the Automarketologist project, predicts that Granta and Niva can increase the price by about 3%, Vesta – by 5%.