Cars in Russia may become more expensive due to the increase of the utilization fee in Belarus

The increase of utilization fee rates in Belarus to the level of Russian ones may lead to an increase in prices for cars imported into Russia. This was stated by Irina Frank, Managing Director of Frank Auto, to "Izvestia" on January 31. According to her, changes in the scrappage fee should eliminate the key factor of gray import of cars through a neighboring country.

"Previously, the difference in fees allowed importers to save money by offering cars cheaper than on the Russian market. Now this difference will disappear, which may lead to an increase in prices for cars imported through Belarus to the level of official dealers in Russia, as well as a reduction in favorable offers for buyers who previously used the Belarusian channel to save money," Frank told Izvestia.

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Importers will shift the increased costs of the scrappage fee to end consumers, she suggested. For example, for new cars in the premium segment, this could mean a 5-15% increase in cost, depending on the category. For mass models, the growth will amount to 3-8%. This will make Belarusian imports less competitive compared to direct deliveries to Russia, she said. In addition, according to Frank, it is expected to reduce the volume of gray imports. According to her data, recently about 10-15% of new foreign cars were imported into Russia through Belarus. After the equalization of rates, this flow may decrease to 2-5%.

Read more in the exclusive material of "Izvestia:

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