Public Hearing on Recycling Fee Indexation for Cars and Other Vehicles
A public hearing will address the proposed indexation of the recycling fee for cars. The session is scheduled for August 14 and was announced via the Telegram channel Unlimited, which has been reporting on the proceedings.
According to the notice, hearings on adjusting the recycling fee for cars, buses, and special equipment through 2030 are set for August 14, 2024, from 11:30 a.m. to 1:30 p.m. The event will take place in the Public Chamber of the Russian Federation, located on Miusskaya Square, building 7, building 1, in hall 4th floor. The wording of the announcement emphasizes the formal nature of the event and its location within a respected civic institution.
Organizers indicated that officials from government agencies, representatives of public organizations, business circles, and automotive companies were invited to participate. At the same time, the Telegram channel suggested that the organizers preferred minimal participation, signaling a possible preference for a constrained audience or a narrow set of attendees.
Earlier, the Russian Association of Automobile Dealers (ROAD) had communicated to the government its position on delaying any change to the recycling fee indexation. ROAD underscored that extending the current terms would help mitigate several risks facing the automotive sector during a period of industry transition.
The association explained that the proposed increase in the recycling collection rate is tied to multiple serious risks for the industry. It was pointed out that the price of passenger cars in Russia has roughly doubled over the past two and a half years, and similar price growth is anticipated by 2030. In light of the ongoing changes, it was argued that higher recycling fees could slow demand, with Russians potentially able to afford cars at rates of about 5 to 7 percent less in real terms. The result could be a cap on new car sales, with projections suggesting that annual sales would not surpass around 600 thousand units. ROAD stressed that such dynamics would influence the broader ecosystem, including spare parts supply and overall vehicle production, highlighting that the impact on vehicle servicing and manufacturing could be notable even as some segments of the industry adapt to evolving regulatory requirements.
Previously, the Lada Dealers Association also addressed the government regarding the possibility of increasing the recycling fee for cars, signaling continued industry concern and advocacy around policy decisions that affect consumer costs and the automotive market structure in Russia.
Overall, the forthcoming hearing is positioned as a forum to discuss how the recycling fee indexation might influence pricing, demand, and industry stability through 2030. Stakeholders are examining potential scenarios, balancing government objectives with industry resilience, consumer affordability, and the broader goals of sustainability and domestic vehicle production. The outcome of the session and any subsequent regulatory steps will be monitored by market participants and analysts across the country.