The Russian car industry experiences
most severe crisis of last years. For First Quarter of 2005 sales of Russian automobiles have fallen down by 14 % while imported car sales have increased by one and half times. The car factories think that they will have no other way out but to assemble foreign cars. In 2004, car industry has shown an incredible growth. Russian domestic car sales have grown by 10 %, and foreign-made car sales doubled. Experts believed, that explosive sales growth would continue, as market had enough room for both domestic cars, as well as for foreign-made cars.
However, miracle did not happen. According to domestic cars sales experts, First Quarter showed domestic car sales plunged by 14 %. The sales of new imported foreign-made cars have increased almost two times, sales of second-hand foreign-made cars increased by one and half times, sales of "Russian foreign-made cars» increased by 17 %.
The discussion of Russia's automobile market problems and development of domestic car industry became a hot topic. It is necessary to notice, that discussion went from governmental offices into streets of Russian cities.
At first sight, main reason for mass protest of motorists is attempt to make right steering wheel cars illegal and to increase customs duties on second-hand foreign-made cars. However, essence of conflict is much deeper. The main issue is crisis of automobile industrial policies of our state.
We can speak about a more or less complete industry development strategy only since mid-2002 when government approved Concept of Automobile Industry Development in Russia. This document has been adopted actually in private and under heavy pressure of Russian car manufacturers is a bright sample of eclectic bridging of opposite problems. On one hand, they proposed integration of country into global automobile market, on another tried to preserve archaic domestic car industry and even creating greenhouse conditions for latter. All these years authorities are trying to do pleasant things for motorcar giants that have barely changed since Soviet times, and to do useful things to promptly growing peoples’ needs for reliable and safe automobiles.
The power of lobbyist efforts of representatives of Russian car industry is much stronger than foreign manufacturers’ lobby what forces us if not to trudge back, but to stay at same point. Therefore, reasonable decision to drop import duties for components and cars is adopted with a biennial delay, and request to make transition by 2004 to manufacture automobiles that are EUROS - 2 EURO - 3 ecologically compliant, has not yet been adopted. At same time we see debate of proposals to restrict market competitiveness so that interests of «Zhigulis" and "Volgas" manufacturers are preserved.
