“It will have a direct impact” Will cars become more expensive due to sanctions imposed on the Moscow Stock Exchange? Automobile expert Moseev: The depreciation of the ruble will be reflected in the price of the car within three months 06/13/2024, 18:14

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.

What are you thinking?

According to experts interviewed by socialbites.ca, the suspension of dollar and euro trading on the Moscow Stock Exchange and the uncertain situation in the ruble exchange rate may lead to an increase in car prices in Russia. According to them, this will primarily affect cars imported through parallel imports, but official dealers may also be tempted to rewrite price tags. At the same time, dealers assure that the stock of vehicles is high and there is no need to increase prices.



Source: Gazeta

Popular

More from author

Crypto expert predicts Bitcoin exchange rate for August 14:23

In August, the Bitcoin exchange rate may either fall below $60,000 or rise to $68,000. This forecast was given to socialbites.ca by Anton Toroptsev,...

Malkevich spoke about the reward announced to those who provided information about him 21:26

Co-chairman of the Coordination Council for the Integration of New Regions of the Public Chamber of the Russian Federation Alexander Malkevich said that he...

IDF says warplanes attacked Yemen’s Hudaydah port 21:34

Israeli warplanes attacked "dual-use facilities" and "energy infrastructure" in Yemen's Hodeidah port, Israel Defense Forces (IDF) spokesman Daniel Hagari said. This was reported by...

Scientists learn that low testosterone is a possible sign of dementia in older men 18:28

Chinese scientists from Fudan University in Shanghai have discovered new signs of approaching dementia in older men. They revealed a decrease in testosterone levels...