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Price hike for cars in Russia postponed: increase in recycling fee may be postponed for a year

Russian car dealers have approached the Ministry of Industry and Trade with a corresponding proposal. Interestingly, the document, which proposes an increase in the recycling fee from October 1, 2024, has not yet been approved.

It became known in the middle of this month that the Ministry of Industry and Trade of the Russian Federation has prepared a plan to increase the recycling fee for cars, commercial vehicles and other equipment, calculated until 2030. Thus, the document, which has not yet been adopted, proposes a one-time introduction of a scale for increasing the payment until the specified date. Let us recall that, as a rule, an increase in the recycling fee results in an increase in the price of cars, especially imported ones, as well as those assembled in the Russian Federation, but with a low level of localization.

If the document is approved by the Ministry of Industry and Trade of the Russian Federation, the plan to increase the recycling fee will come into force on October 1, 2024. However, the idea in its current version did not find support from the Russian Auto Dealers Association. As reported by Vedomosti, ROAD sent a corresponding letter to the department addressed to the current head Anton Alikhanov. The association, in particular, asked to postpone the change in the recycling fee rates for cars from this year to 2025.

Russian car dealers emphasized that before increasing the recycling fee, it is necessary to compile a list of those cars, special equipment and trailers that are not manufactured in the Russian Federation. Also, according to representatives of the association, the authorities should synchronize the plan for increasing the recycling fee with the strategy for the development of the auto industry, which is calculated until 2035.

Also, according to representatives of ROAD, Russia needs to «build up mechanisms to support the auto industry.» In particular, the association advocates for the resumption of the state recycling program, which provides a discount for customers buying a new car in exchange for turning in an old one for recycling.

According to the plan prepared by the Ministry of Industry and Trade, in 2024 the amount of the fee for cars and semi-trailers will increase by an average of approximately 70-85%, and then will grow by 10-20% annually. This means that if the document is approved, the increase in the recycling fee for cars with an engine capacity of 1.0 to 2.0 liters will increase by 85% (or more than 250 thousand rubles) this year — up to 556 thousand rubles.

As Kolesa.ru noted earlier, approximately the same increase may ultimately be reflected in the retail prices of cars on the Russian market. In the future, the amount of the recycling fee will only grow. Thus, the amount of the recycling fee for cars of the same segment by 2030 may reach the level of approximately 1 million rubles.

Recall that the Avtostat agency calculated that, based on the results of 2023, imported cars accounted for 54% of the total sales of new passenger cars in the Russian Federation. Of these, vehicles imported through official imports (mainly from China) accounted for 42%, and those supplied through the parallel import scheme accounted for 12%.

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