Experts explained the low car prices in China compared to Russia

Car prices are now quite low in China, and some models are significantly cheaper than in Russia. This is due to the fact that the pricing structure in China is significantly different, explained Anna Utkina, Director of Communications at Avtodom and Avtospeccenter dealer holdings.

In China, the final cost of a car is strongly influenced by the fact that companies produce a large volume of cars, local authorities support manufacturers, taxes within the country are low, and logistics are cheap, Utkina said.

After the car is imported into the Russian Federation for sale, the cost of the car increases significantly, since it includes transportation, logistics, insurance, recycling, customs and VAT. For example, if a car costs 1.2 million rubles in China, then in Russia its price reaches 2.5-3 million rubles, Utkina estimated.

"It is possible to reduce car prices in Russia, but for this it is necessary to review and simplify import duties, reduce recycling fees, strengthen local production and service infrastructure. So far, no such changes are planned, and therefore Chinese cars in Russia will remain 1.5-2 times more expensive than in China," Rossiyskaya Gazeta quotes her.

Renat Tyukteev, Deputy General Director for New Car Sales at Avilon AG, noted that importers from China are pursuing an independent pricing policy in Russia, and most manufacturers are operating in the country this year in conditions of low profitability due to high financing costs. Nikolai Ivanov, Director of the New car department at Rolf, drew attention to the fact that there is a large overproduction in China, and this volume "smears" the cost of production.

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