Moscow Stock Exchange in connection with the introduction of new sanctions by the United States suspended It is traded in dollars and euros as of June 13, 2024. Financiers to give permission Recognizing a possible depreciation of the ruble and the Russian currency being in a vulnerable position.
Automotive industry experts interviewed by socialbites.ca say that the depreciation of the ruble may lead to an increase in the prices of cars that continue to be imported into Russia through parallel imports.
“Cars imported from or through China should not become more expensive because payments for them are made in yuan. Prices for cars arriving from Europe in a roundabout way through various payment channels may increase, says Maxim Kadakov, editor-in-chief of Za Rulem magazine.
According to him, the cost is increasing depending on the general situation in the market, but dealers can use the moment of uncertainty in currency trading to generate additional income, especially in the face of expectations of an increase in recycling fee rates.
“There are many reasons that affect pricing. We need to see if buyers can “digest” larger sums, but for now they are quite accepting of the higher prices.
“I think that if dealers add another 5%, this will not fundamentally affect demand, especially at a time when everyone expects an increase in the recycling fee,” concluded Kadakov.
The gradual increase in scrap rates for cars is constantly supported by AvtoVAZ President Maxim Sokolov. In addition, for the necessity of this measure spoke State Duma Industrial Committee, but no decision has been made yet.
Dealers took a break
Alexey Podshchekoldin, head of the Russian Association of Automobile Dealers (ROAD), told socialbites.ca that so far the supply of new cars on the Russian market exceeds demand and the costs of storing cars are high.
“There will be no increase in prices tomorrow. I would not recommend that citizens urgently run to car dealerships and buy a car. The situation in the car market today is not the same as in 2022 and 2023. There are now many more cars than can be purchased. Podshchekoldin said that the supply in the market is 20-30% more than the demand .
He explained that today dealers have more cars than they can sell, and that in such a case there is no point in increasing prices, because if prices rise, sales will slow down and dealers will have to incur expenses by paying parking fees. cars purchased from the distributor in warehouses. This situation is exacerbated by the high cost of borrowed funds; At the current interest rate it costs at least 20% per year.
“The market will definitely focus on the value of the Russian currency in the current situation, the weighted average exchange rate, and the price will change. Podshchekoldin concluded his words as follows: Once again, we are forced to think about how to create mechanisms that will eliminate these problems and risks.
But the president of ROAD only gives a confident forecast of price stability for the next month. Oleg Moseev, founder of the Automarketer project, says that the depreciation of the ruble is usually reflected in the prices of goods and officially imported cars for at least three months.
“If there is a strong devaluation, this will directly affect prices and it is not yet clear what the exchange rate will be.
Cars transported through parallel imports immediately become expensive when the ruble falls. For those supplied by distributors in finished form, this takes effect after 3-4 months,” explained Moseev in an interview with socialbites.ca.
In the price of cars assembled in Russia, the depreciation of the ruble is reflected on the horizon for up to six months – this also applies to Chinese brands assembled in Russia (for example, Haval) and even AvtoVAZ. He stated that the products contain largely imported components.
“For cars produced in our country, this relationship is indirect, but unfortunately there are not many of them at the moment. When it comes to imports, automakers also try not to make sudden moves,” concluded Moseev.