AVTOVAZ proposes to increase the amount of scrap

Despite the sharp decline in deliveries of foreign cars to Russia, AVTOVAZ proposes to increase the size of the scrap fee in order to further protect the domestic market from imports. According to Kommersant newspaper, citing its sources, the government has repeatedly rejected this idea, and now it will restrict the few existing local projects based on Chinese cars, as they will not receive compensation. It creates the risk of further price increases and a shortage of cars. Recall that the disposal fee acts as a barrier against imports, but is paid for all cars imported and produced in the Russian Federation.

In 2021, the budget received 513.8 billion rubles with the help of salvage fees, among which only 130.4 billion rubles actually represent budget revenues, as they were collected from imports. Automakers that have entered into special investment contracts (SPICs) can claim compensation for salvage fees. Since 2022, reimbursements are completely dependent on the level of localization, and the target bar in the passenger segment is 2,000 points. Recall that the SPICs were concluded on the terms of localization, starting from welding and painting, which give 900 points.