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6.02.2014

Car prices to go up on March 1  ? 93

7:33, — Auto
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Car prices to go up on March 1

Lukashenka has signed a decree on car recycling fees.

The document is expected to be published in the nearest days.

Pessimistic expectations of Belarusian car dealers are coming true: The decree on vehicle recycling fees will take effect on March 1, according the document signed by Lukashenka in early February, Yezhednevnik reports.

Prices for some cars are likely to increase and people may stop buying certain categories of cars. The only consolation that dealers have is that the expectation of the price increase will more effective than any advertising.

Siarhei Varyvoda, the chair of board of Intellect group of companies, comments on consequences of changes in Minsk's vehicle market that were forecast by some car dealers last year.

Cars imported by individuals will grow in price insignificantly: old cars by RUB2,000 (about 555,000 Belarusian rubles), used ones by RUB3,000 (about 830,000 Belarusian rubles).

The size of recycling fees on used cars imported by companies put car dealers on the brink of collapse. The business of selling and buying cars will become unfeasible, Varivoda says.

It is expected that fees on new vehicles imported by companies from outside the Customs Union, except for those produced in other CIS countries, will be compensated by a reduced customs duty (by one-sixth of the current duty). Varyvoda thinks most brands and models of this segment will slightly grow in price.

The expert explains that foreign-made cars imported from the countries that signed the CIS free trade zone agreement except for Customs Union members will go up by 10%. Varyvoda thinks it will affect the sales of ZAZ and Borgan from Ukraine as well as Daewoo.

Prices for cars imported from the Customs Union countries will also rose. It's possible that governments will sign an agreement on mutual compensations for the recycling fees paid in a neighbouring country, Varyvoda supposes. But such decisions are unlikely to be taken by March 1.

The price of the cars produced in Belarus Geely, Zotye and Opel Corsa won't change. It's worth noting that under the draft decree, the recycling fees on exported Belarus-made cars will be paid to the country of destination. It means that Belarus won't receive millions of dollars.

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