By using the parallel import mechanism in 2024, automobile imports to Russia will be reduced by half. This prediction was shared by the head of the Russian Association of Automobile Dealers (ROAD) Alexey Podshchekoldin in a conversation with socialbites.ca.
According to Podshchekoldin, major car dealers have begun to abandon parallel import programs, and next year the number of players in this market will decrease sharply.
“Despite the seemingly interesting business history,
Many major official dealers have stopped the parallel import story.
And most dealers will reject it. In 2024, the number of cars to be imported through parallel imports will decrease by half. But there is demand in this market, customers are ready to buy Mercedes-Benz, BMW and Audi,” said the president of ROAD.
According to the association, 130 thousand cars were imported to Russia through parallel imports in 2023. The most popular brands were Toyota, Kia, Hyundai, BMW and Mitsubishi.
counter state
Podshchekoldin cited dealers’ obligation to provide warranty support and after-sales service as one of the reasons for refusing parallel imports. Car dealers do not want to work without the support of the manufacturer because it is very difficult to obtain spare parts for new models on time. He also says many new models lack repair and operating instructions.
“Imagine that after owning a car for a year and a half, a serious malfunction occurs and the buyer is able to return the car and demand the cost of the new car.
Additional burdens arise due to increasing logistics costs and the complexity of customs procedures.
Dealers have to deal with customs, certification and installation of ERA-GLONASS devices,” explained Podshchekoldin.
The ROAD president said Chinese automakers also do not support parallel imports, which discourages some of their customers. Most of the cars are imported from China: the same Audi, BMW and Mercedes-Benz. According to him, in 2024 the authorities will work to increase various fees, which will make the price of an imported car unattractive.
“To think,
The Ministry of Industry and Trade will work to strengthen the obstacles to automobile imports through parallel imports.
The market is already approaching saturation: this year there will be 1.1 million cars, and next year there will be 200 thousand more. This means canceling supports for the development of domestic production and introducing protective taxes. “The government absolutely does not need the parallel import story in 2024,” he is sure.
I’m already disappointed
Two large dealer holdings, Avtodom and AvtoSpetsTsentr, were the first to announce the refusal to supply cars to Russia through parallel imports in November. The decision was taken due to supply constraints, reduced consumer demand for such machines and increased import costs from Europe. said In the joint press service of the companies “socialbites.ca”.
According to a socialbites.ca source in the automobile industry, parallel imports have become unprofitable in our country due to the rise in the dollar and euro exchange rate, as well as the increase in the key rate of the Bank of Russia.
“This business is possible with an exchange rate of 80-85 rubles per euro. Now it’s actually disappearing.
Logistics and border crossings pose additional challenges. “This trend will continue in 2024 as the benefits to customers of purchasing such cars become less obvious,” he said.
As Ilya Petrov, retail sales director of the Avilon automobile group, noted, the decline in the share of parallel imports is influenced by the appearance of official automakers in the market. The demand for Chinese branded cars is increasing due to the development of official dealer networks, warranties, a wide range of new products, high technology and design.
Prices will increase
Importing foreign cars to Russia will become even more expensive in 2024. In Kyrgyzstan, one of the main routes for the supply of cars to Russia, the founder of the RogovMobil company Dmitry Rogov (specializing in car delivery turnkey from abroad told socialbites.ca.).
“The tariff schedule is a table showing the approximate cost of goods. The changes were planned for mid-January but were postponed until March. Customs costs and customs duties will increase, and all of this will fall on the shoulders of the final buyer,” explains Rogov.
Elena Lisovskaya, author of the YouTube channel “The Fox Rules”, which imports and sells foreign cars, says that the only serious problem for companies importing cars for sale into the Russian Federation is the increase in recycling fees. As of August 1 of this year, the recycling rate in passenger cars has increased by 1.7-3.7 times, depending on engine volume, Wrote “socialbites.ca”.
“Many cars are not worth moving. Who will buy Toyota Camry for 5 million rubles? Only really die-hard Camry lovers,” Lisovskaya said.
He stated that the number of companies importing cars has decreased and only the big players remain. Lisovskaya fears that in the future the government may ban the import of cars that are already officially offered on the market.
“If we are deprived of this alternative, we will not bother with such machines. Maybe we will import the same ones, but if they are not prohibited, they have low mileage. “Or we will carry Toyota and Mitsubishi, which are not in our market,” he said.
Car selection expert and author of the YouTube channel AvtoRevizorro Kirill Chernov said that market participants fear confusion regarding the payment of scrap duty and the situation with cars passing through customs with an undervaluation.
“People who brought in a car before the recycling fee was imposed are afraid to sell it because they will suddenly receive a demand for payment from the tax authorities. In the provisions regarding recycling collection, words do not form a clear sentence, and comments can be distorted as you wish. Also unclear is the situation with the passage of Kyrgyz cars through customs and an apparent depreciation; “Will further action be taken against them or will they be allowed to continue driving in peace?” he explained.