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Automobile Industry Position in Russia


The Russian automobile enterprise reviews the maximum excessive disaster of the last years. For the First Quarter of 2005, the income of Russian cars has fallen down with the aid of 14 % at the same time as imported car sales have extended via one and 1/2 times. The vehicle factories suppose that they will haven’t any different manner out, however, to bring together overseas cars.

In 2004, the automobile enterprise has proven an exquisite growth. Russian home automobile income has grown with the aid of 10 %, and foreign-made automobile income doubled. Experts believed, that the explosive sales increase would keep, as the marketplace had enough room for both home motors, in addition to for foreign-made motors.

However, the miracle did no longer happen. According to domestic cars sales professionals, the First Quarter showed domestic car sales plunged by way of 14 %. The sales of latest imported foreign-made motors have expanded almost two instances, the sales of second-hand overseas-made automobiles multiplied by using one and half of times, the income of “Russian overseas-made automobiles» expanded by using 17 %.

The dialogue of Russia’s vehicle marketplace troubles and the development of home vehicle industry became a warm subject matter. It is essential to note, that the discussion went from governmental places of work into the streets of the Russian towns.

At first sight, the principle purpose of a mass protest of motorists is the try and make right steerage wheel vehicles unlawful and to boom customs duties on 2d-hand foreign-made automobiles. However, the essence of the conflict is an awful lot deeper. The principal issue is the crisis of the car commercial regulations of our kingdom.

We can talk about a greater or much less entire industry improvement strategy most effective since mid-2002 whilst the authorities permitted the Concept of Automobile Industry Development in Russia. This file has been followed truly in private and beneath the heavy strain of the Russian vehicle, producers is a bright pattern of eclectic bridging of opposite problems. On the only hand, they proposed the integration of u. S . Into global vehicle marketplace, on every other attempted to preserve the archaic domestic automobile industry and even growing greenhouse conditions for the latter. All those years the authorities are looking to do satisfactory matters for the motorcar giants that have slightly changed because the Soviet times, and to do beneficial matters to right away developing peoples’ desires for dependable and secure motors.

The strength of lobbyist efforts of representatives of the Russian car enterprise is much more potent than overseas manufacturers’ foyer what forces us if no longer to trudge back, but to live at the same point. Therefore, the affordable choice to drop import duties for additives and motors is adopted with a biennial delay, and the request to make the transition by using 2004 to fabricate motors that are EUROS – 2 EURO – 3 ecologically compliant, has now not but been followed. At the same time, we see the debate of the proposals to limit marketplace competitiveness in order that the pursuits of «Zhigulis” and “Volga” producers are preserved.

Meanwhile, the demand for overseas motors grows step by step. In 2004 for the primary time, the purchase of foreign-made vehicles has surpassed sales of Russian-made cars via income extent. The “sitting on the two chairs” policy restrict is nearly reached. Now there is a trouble of choice. Either to maintain the home car industry as it is now via shutting the country down for foreign-made imports, a extensive boom (due to loss of real opposition) of the Russian-made car costs, what’s going to make road traumatism situation even more reported (taking into account extraordinarily low safety ranges of our motors) and, at the end, sharp boom of social tension. On the alternative hand, it is essential to renowned that we’re unable to capture up with the superior automobile powerhouses of the East and the West, and, consequently, we have to sincerely borrow their technologies, via organizing the manufacturing of overseas vehicles in Russia, giving, thus, the option for every Russian citizen to purchase the automobile he wants, no matter where it’s been synthetic.

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If one considers the first variant politically probably, he nearly takes Russia on the road shoulder of the worldwide economic system, hurts the interests of the center class and, what’s the most important, does now not rescue the domestic automobile enterprise, but most effective prolongs its discomfort. The different choice, without a doubt, isn’t pretty with out ache. However, right here in Russia, a small sacrifice facilitates triumphing the game. A huge-scale overseas investment into motor industry responds to the pursuits of clients, people, and the state. It is simplest unprofitable to the auto oligarchies which have got used to parasite from their monopoly function and take benefit of the imperious protectionist policy.