The Russian automobile enterprise stories the most severe disaster of the ultimate years. For the primary region of 2005, the income of Russian vehicles has fallen with the aid of 14 %, while imported automobile sales have accelerated using one and half of instances. However, the automobile factories suppose that they may have no different manner out to assemble foreign motors.

In 2004, the automobile enterprise showed outstanding growth. Russian home automobile income has grown by 10 %, and foreign-made automobile income doubled. Specialists believed that the explosive income increase would hold, as the marketplace had sufficient room for each domestic vehicle, as well as for overseas-made automobiles.

Automobile Industry Position in Russia 1

But, the miracle did no longer occur. In keeping with domestic cars income specialists, the first quarter confirmed home car income plunged with the aid of 14 %. The income of the latest imported overseas-made cars has accelerated nearly two times. The sales of second-hand overseas-made cars elevated by one and a half instances. The income of “Russian foreign-made vehicles» improved by 17 %.

The discussion of Russia’s automobile market issues and the development of the home care industry became a hot subject matter. It’s far important to word that the dialogue went from governmental workplaces into the streets of the Russian cities.

In the beginning sight, the primary motive for a mass protest of motorists is to make proper steerage wheel cars illegal and to grow customs obligations on 2nd-hand overseas-made vehicles. But, the essence of the struggle is a lot deeper. The primary issue is the disaster of the automobile business guidelines of our country.

We can only communicate about a greater or less complete industry development method because, in mid-2002, the government permitted the idea of car enterprise improvement in Russia. This report has been adopted definitely in non-public, and below heavy stress of the Russian vehicle, producers is a bright pattern of eclectic bridging of opposite problems. On the only hand, the proposed integration of the united states into the global vehicle marketplace, on some other tried to keep the archaic home car enterprise or even creating greenhouse situations for the latter. During these years, the authorities sought to do nice things for the motorized vehicle giants, which have barely been modified because of the Soviet times, and to do useful things right away, growing peoples’ desires for dependable and safe cars.

The energy of lobbyist efforts of representatives of the Russian automobile enterprise is plenty more potent than overseas producers’ foyer what forces us, if no longer, to trudge lower back, however, to live on the equal point. Therefore, the reasonable choice to drop import duties for additives and automobiles is followed by a biennial put-off and the request to make the transition through 2004 to fabricate vehicles that can be EROS – 2 Eros – three ecologically compliant, has not but been followed. At the same time, we see the talk of the proposals to restrict market competitiveness so that the interests of “Ghoulish” and “Volga” producers are preserved.

In the meantime, the demand for foreign automobiles grows regularly. In 2004 for the first time, the purchase of overseas-made vehicles had handed sales of Russian-made automobiles by using income extent. The “sitting on the 2 chairs” policy restriction was practically reached. Now there may be a problem of preference. Either to keep the home vehicle industry as it’s miles now via shutting us of a down for foreign-made imports, a vast increase (because of loss of actual opposition) of the Russian-made car costs, what’s going to make road traumatic state of affairs even more mentioned

(deliberating meager protection ranges of our vehicles) and, at the stop, a sharp increase of social anxiety. Alternatively, it’s miles vital to acknowledge that we are unable to catch up with the superior car powerhouses of the East and the West, and, subsequently, we should certainly borrow their technologies by using organizing the manufacturing of foreign automobiles in Russia, giving, thus, a choice for every Russian citizen to purchase the auto he wants, regardless of in which it’s been manufactured.

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If one considers the first variation politically probably, he almost takes Russia on the street shoulder of the world economic system, hurts the hobbies of the middle magnificence, and, what’s the maximum critical, does now not rescue the domestic automobile enterprise however most effective prolongs its discomfort.

The opposite preference, sincerely, isn’t pretty with our ache. However, right here in Russia, a small sacrifice helps to prevail in the game. A huge-scale foreign investment into the motor industry responds to the interests of purchasers, people, and the country. It’s far handiest unprofitable to the oligarchical that have got used to parasite from their monopoly function and benefit from imperious protectionist coverage.