Russian automaker AvtoVAZ cannot compete with Chinese companies even in the domestic market due to the high cost of Lada. writes NSN cites Vyacheslav Zhigalov, director of the expert association “Russian Automobile Dealers”.
According to him, the high cost of cars is due to the high costs, including disposal fees paid by manufacturers. However, he noted that Russian factories receive compensation from the budget, but this compensation reaches the companies “a long time later.”
“In our market, all retail prices are determined by the factory <...> “Our raw materials, energy resources and labor are not very expensive, but at the end of the chain we get a car that cannot compete even with the Chinese in the domestic market. The costs are not only in the factory, there are costs at every stage,” he said.
Before that, the Russian Association of Automobile Dealers (ROAD) sent The government has proposed to postpone the indexation of the recycling fee for cars for five years.
The organization notes that the increase in the rate of recycling collection is associated with a number of serious risks for the industry. The association recalls that the price of passenger cars in Russia has doubled over the past 2.5 years. The same amount of cars is expected to increase in price by 2030. Taking into account the growth in recycling collection, Russians will be able to afford to buy a car by 5-7%, and new car sales will not exceed 600 thousand units, which “will allow the development of new cars”, spare parts and car production are irrelevant, ROAD emphasizes.
From October 1, the size of the recycling fee in Russia may increase by 70-85%. Anticipating this, Russians rushed to buy cars. Demand for them increased by 42.4% in July. A total of 136.2 thousand cars were sold in a month. The dynamics are expected to continue in August.
It was previously reported that car repair prices in Russia are rising again. will rise by the end of the year.
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Source: Gazeta

Anika Rood is an author at “Social Bites”. She is an automobile enthusiast who writes about the latest developments and news in the automobile industry. With a deep understanding of the latest technologies and a passion for writing, Anika provides insightful and engaging articles that keep her readers informed and up-to-date on the latest happenings in the world of automobiles.