AEB notes slowdown in Russia's auto market amid adaptation to new regulation
MOSCOW. May 6 (Interfax) - Russia's auto market slowed down in April amid adapting to the new regulations for calculating disposal and recycling fees, the Association of European Businesses (AEB) said.
The Industry and Trade Ministry reported yesterday, citing data from JSC Passport Industrial Consulting (PPK), a joint venture between the Autostat analytical agency and the JSC Electronic Passport manufacturer's certificate of origin operator, that sales of new passenger cars and light commercial vehicles in Russia surged 76.4% on last year's low base to 147,663 vehicles in April 2024, though the market declined 6.5% month-on-month.
The AEB in its April press release also drew attention to the slowdown in the domestic car market.
"Obviously, market growth [in auto sales] is slowing down. The market continues to adapt to the changing rules of the industry regulations, which also include the amended rules for recalculation of the disposal fees for cars imported from Eurasian Economic Union (EAEU) countries that came onto force as of April 1, 2024," Alexei Kalitsev, chairman of the AEB Automobile Manufacturers Committee, said in the press release.
The AEB also notes growing consumer interest in electric vehicles and hybrids. The Industry and Trade Ministry the previous day reported that sales of electric cars in Russia soared 3.3-fold year-on-year to over 8,700 vehicles in January-April 2024.
The AEB said that one of the limiting factors in purchasing cars powered by alternative fuels remains the current approach to calculating excise taxes and other payments based on simple addition of engine power, which is incorrect from a technical point of view.
Consequently, developing and implementing methods for calculating the power of vehicles with two or more engines remains relevant. AEB has already contacted the relevant government authorities with a proposal to conduct the corresponding research, and AEB hopes that the authorities will initiate and support the initiative, Kalitsev said.