The government is urged to pause the planned increase in salvage fees for vehicles brought in for resale. In a formal submission to Prime Minister Mikhail Mishustin, the Association of “Russian Auto Dealers” (ROAD) presented a document signed by its President, Alexei Podshchekoldin, outlining the association’s position and concerns. (ROAD)
ROAD conveyed support for policies aimed at shielding the Russian automobile market from a flood of used-car imports. Yet the association argues that raising recovery fees now would be premature, noting that the market has only partially recovered from its 2021 level. (ROAD)
According to ROAD, a government decree on the fee schedule could trigger a cascade of negative outcomes. The association warned of immediate damage to the Russian automotive market and warned that additional price pressures could dampen demand, disrupt supply chains, and slow recovery across the sector. (ROAD)
The proposed rise in scrapping fees is expected to shrink the volume of automobile imports from China. ROAD warns that this reduced demand could affect Russia–China relations and complicate new regional projects. It also cautions that a slower market rebound may prolong a period of limited vehicle availability and threaten employment in the industry. (ROAD)
Data from the Ministry of Industry and Trade indicate that the recycling fee for cars will be indexed starting August 1 of this year. The new rates are projected to be higher by a factor of 1.7 to 3.7 for passenger cars, 2.5 to 3.4 for light commercial vehicles, and 1.7 for trucks. The rate increases are set to impact both new and used vehicles. (Ministry of Industry and Trade). ROAD highlights that these changes will have broad implications for consumers and dealers alike. (ROAD)
At the same time, a major importer in Russia, Skywell, has warned about upward pressure on car prices in the wake of the August changes. The concern is that price shifts could persist across the market as supply adjusts to the new fee regime. (Skywell). ROAD notes that a cautious approach to reform could help stabilize prices and support a more gradual market recovery. (ROAD)