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From August 1, 2023 in Russia increased scrap collection for cars
Source:gazeta.ru From:Taiwan Trade Center, Moscow Update Time:2023/09/02

In Russia, the recycling fee for cars imported into the country has increased. For a number of categories of cars, this fee has increased by almost a quarter of their cost

One of those who supported the increase in the recycling fee for passenger cars was the domestic AvtoVAZ. The company did not hide that they were asking to raise the rates of this fee and immediately supported the relevant decision of the Ministry of Industry and Trade. Other domestic automakers also supported this decision.

At the same time, the rates have increased unevenly, and just in the segment of passenger cars sold in Russia officially, the increase has not affected so much.

According to calculations, Russian-made cars will not actually rise in price, as the authorities compensate automakers for the payment of the recycling fee in exchange for the localization of production.

New foreign cars imported by official means will also not noticeably rise in price, since now they are mainly Chinese cars, which are almost universally equipped with engines ranging from 1.0 to 2.0 liters

Most of all, the new salvage rates affect cars with an engine capacity from 2 to 3.5 liters imported by private individuals for resale in Russia. The bid was raised higher only for models with a motor volume of more than 3.5 liters, but these are premium segment cars that are initially expensive, and for which an increase in scrap collection in percentage terms will not greatly affect the price.

Due to the increase in recycling rates and the sharp fall in the ruble exchange rate, private distillers and car dealers intend to abandon the supply of the least profitable models, they told the newspaper.Ru" market participants.  Imports of some Hyundai, Kia, Jeep models and even large BMW and Mercedes-Benz crossovers are under threat. What kind of cars will leave the Russian market, I was figuring out "Газета.Ru ".

There will be fewer models available for purchase on the Russian car market, and cars with volumetric engines will have to pay hundreds of thousands of rubles more due to the new recycling rates, which came into force on August 1. About this "Newspaper.Ru" was told by the founder of the company "RogovMobile" Dmitry Rogov. His company specializes in turnkey delivery of cars from South Korea, Europe, and Japan.

"The Hyundai Palisade model is popular in Russia, a lot of such cars are brought. It has versions with 3.5-liter and 3.8-liter V6 engines. This is a model with a classic "automatic" — old school, many would like such a car, especially in the north of the country. However, this option will definitely leave the market because it will become much more expensive," says Rogov.

Another popular Korean family minivan, Kia Carnival with an atmospheric 3.5-liter engine, will rise in price by about 1 million rubles and will also cease to be in demand among Russians, the interlocutor is sure. The Jeep Grand Cherokee SUV with an engine capacity of 3.6 liters will also be among the models that the Russian market will lose, he says.

Judging by the open data of classifieds, such Kia Carnival and Hyundai Palisade cost 4.5 million rubles. In addition to them, private traders import into Russia many popular models with an engine volume of 3.0 liters, including the Hyundai Staria minivan, Toyota Land Cruiser 300 SUV, Toyota Camry sedan, Volkswagen Touareg crossovers, Lexus RX 350, Hyundai Santa Fe, Kia Mohave, Sorento and others. These cars are more in demand, they do not belong to a niche, but the price for them will grow by 1 million rubles and higher, the expert believes.

For electric vehicles, the most serious jump in the collection is 10 times: from 32.6 thousand to 360 thousand rubles, regardless of capacity.

A loophole is also being closed, according to which dealers have cleared a car for an individual at a low rate — if the imported foreign car is sold by a private owner within three years, then he will have to pay for the scrap collection at the rate of a legal entity. Moreover, for cars with a motor of more than three liters (they are premium by the government), an individual will be asked for increased payment for scrap, as for legal entities.

Source: https://www.gazeta.ru/auto/2023/07/26/17333672.shtml?ysclid=lkwjro3mwu234197104