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Cars in the Russian Federation will continue to rise in price due to increased recycling fees. Import is questionable

The Ministry of Industry and Trade has developed a plan to increase the amount of the recycling fee, calculated until 2030.

According to today's standards, all automobile companies operating in the production, import and sale of cars in the Russian Federation must pay a recycling fee. At the same time, local producers (subject to a high degree of localization) receive a large part of the amount paid back in the form of subsidies. From time to time, local authorities decide to increase the recycling collection: as a rule, the consequence of this is an increase in the price of cars, especially for imported ones, as well as those assembled in the Russian Federation, but with a low level of localization.

Now the Ministry of Industry and Trade of the Russian Federation has prepared a plan for increasing the recycling fee for cars, commercial vehicles and other equipment, calculated until 2030. The corresponding draft will soon be presented for public discussion. As Kommersant reports, the document provides for the immediate introduction of a payment increase scale until the beginning of the next decade.

The increase in recycling collection will affect passenger cars, light commercial vehicles, trucks, buses, semi-trailers and some categories of road construction equipment. According to the draft resolution, which was prepared by the Ministry of Industry and Trade, in 2024 the amount of tax on cars and semi-trailers will increase on average by about 70-85%, and then will grow by 10-20% annually.

If the document is approved, already this year the increase in recycling collection for cars with an engine capacity of 1.0 to 2.0 liters will increase by 85% (or by more than 250 thousand rubles) — up to 556 thousand rubles. Approximately the same increase may ultimately be reflected in the retail price tags of cars on the Russian market. It is worth noting that according to earlier calculations, the payment for cars of the same segment by 2030 could reach approximately 1 million rubles.

The publication added that the Russian Ministry of Industry and Trade decided to discuss a long-term plan to increase the recycling fee for the first time. The department assumes that such an approach «may contribute to the formation of predictable conditions for investment decisions by domestic and foreign manufacturers ready for localization.» It should be noted that this could obviously put an end to the import of budget and mid-priced cars into the country.

According to Sergey Udalov from the Avtostat agency, the increase in the recycling fee will have a positive effect — in predictability for market players for several years to come. «It is important that the parameters set for future years are not deviated from, and this really allows for project planning,» the expert explained.

According to Avtostat statistics, by the end of 2023, imported cars accounted for 54% of total sales of new passenger cars in the Russian Federation. Of these, the share of vehicles imported through official imports (mainly from China) accounted for 42%, and the share of those supplied through the parallel import scheme accounted for 12%. According to the agency's calculations, a total of 1,058,708 new passenger cars were sold on the Russian market last year, meaning that the total import amounted to about 571.7 thousand vehicles (of which 444.7 thousand units were officially imported, and 127 thousand units were parallel imported).

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