Entertaining "physicists": for whom they want to increase the size of the recycling collection

New criteria for preferential recycling may be introduced in Russia, which apply to vehicles imported by private individuals for personal use. The Ministry of Industry and Trade intends to add a power limit to the existing engine volume limits. This will lead to a sharp reduction in the number of models eligible for benefits, higher prices and a further decline in the car market, dealers and experts say. The details are in the Izvestia article.

Capacity is scrapped

The Ministry of Industry and Trade intends to change the criteria allowing individual importers who import cars for personal use to pay for their recycling at discounted rates. This was stated by the head of the department Anton Alikhanov. According to him, this measure will attract additional funds that will be used to support car sales.

"During the strategic session, we reported to the chairman [of the Government of the Russian Federation Mikhail Mishustin], who was just considering the automotive industry, about the need to extend the recycling fee to those cars that are imported by individuals, but in certain segments, that is, 160 "horses" and above, we will also extend the recycling fee to them," — said Anton Alikhanov.

According to the head of the Ministry of Industry and Trade, this measure is planned to be introduced in the "near future." This will additionally bring tens of billions of rubles to the budget, he said.

"We made different estimates — from 40 to 60 billion rubles. <...> not all of them are at our disposal, and some of them are transferred to the Ministry of Finance for other purposes," Anton Alikhanov noted.

How much do individuals pay now

According to the current rules, when an individual imports a car for personal use, the vehicle is subject to recycling at a discounted rate. For new cars, it is 3.4 thousand rubles, for cars older than three years — 5.2 thousand rubles. Important condition: the engine capacity should not exceed three liters. Otherwise, the so-called "commercial" recycling rates apply, which are significantly higher.

In addition, to take advantage of this benefit, you can import only one car in your name during the year, which must subsequently be owned by the importer for at least 12 months. In case of violation of these conditions, the recycling fee is also charged at "commercial" rates.

The Ministry of Industry and Trade has not yet commented on the possible recycling rates for models with an engine capacity of more than 160 hp imported by individuals, nor the estimated timing of their introduction.

Who are we protecting?

The current situation with falling sales of new cars is one of the consequences of increased recycling last fall and earlier this year, says Igor Morzharetto, partner at the Autostat analytical agency.

— Due to this, they also tried to get additional revenues to the budget. The result turned out to be the opposite — sales of cars and their imports fell, as a result, revenues from recycling also decreased," he told Izvestia.

He calls the decision to impose a power limit of 160 hp unreasonable and illogical.

— One of the declared purposes of the recycling fee is to protect the interests of the Russian automotive industry. But there are no mass-produced cars in our country, and as far as I know, neither passenger cars nor engines of such power are being developed. It is completely unclear who this "protection" is designed for," Igor Morzharetto said in a conversation with Izvestia.

— This decision is not just an adjustment of the recycling collection, but an attempt to urgently plug the hole in financing preferential car programs at the expense of a narrow group of buyers. The consequences for the market can be drastic and negative," says Irina Frank, CEO of Frank Auto.

According to Irina Frank, after the introduction of such a measure, parallel imports of cars with a capacity of more than 160 hp by individuals will practically cease. "Buyers of these cars will either refuse to buy, or turn to authorized dealers (where prices are already high), or they will look for even more sophisticated and risky import schemes," she predicts.

— The disappearance of cheaper "gray" competitors in the 160 hp segment is a plus for official channels. Seeing that there is no alternative, official dealers and local brands may try to raise prices for their powerful models, taking advantage of the weakening of competition, — Irina Frank believes.

At the same time, the used model market will suffer more, Irina Frank notes. The collection rate for cars older than three years is already higher, she recalls. It is logical to expect that the increase for them will be more significant, which will hit the market of powerful foreign cars with mileage, which is already unstable, the CEO of Frank Auto is sure.

The expected revenues of 40-60 billion rubles are a significant amount for government programs, but it will only delay the problem, the expert believes. If the market drawdown is 40% or more, then this money will not last long, Irina Frank notes.

— In the short term, the government will receive money for subsidies, but at the cost of a sharp increase in prices for powerful imported foreign cars, the collapse of the segment of their "gray" imports and increased price pressure from official players. In the long term, this is a step towards further isolating the Russian car market and reducing consumer choice, especially in the premium segment. The effect on supporting mass demand will be limited and temporary," Irina Frank summarizes.

The choice will narrow down

The increase in recycling leads to a reduction in parallel imports, which now occupy a small market share, according to the Association of Russian Automobile Dealers (ROAD)

— It is obvious that such cars will rise in price by the cost of recycling. At the same time, it is necessary to take into account the significant drop in the sales market and low purchasing power," the press service of the ROAD told Izvestia.

This measure is aimed at increasing interest in domestic products and the development of full-cycle production in the country for importers, the association noted.

This decision will inevitably lead to higher prices and a narrowing of the choice of cars, said Maxim Kadakov, editor-in-chief of Za Rulem magazine.

— We already observed last year how, in anticipation of an increase in recycling, people rushed to buy cars on the principle of "you have to take it before it gets more expensive." Most likely, buyers will rush to buy cars again based on the same sentiments. However, given the statements about the "very soon" adoption of new rules, this effect will be very short-term. And in the future, an even more serious recession is possible," Maxim Kadakov predicts.