Русский
The Chinese car manufacturer Changan has stopped producing its cars at the Avtotor plant in Kaliningrad and now plans to supply its cars to Russia from Kazakhstan. The first deliveries are scheduled for autumn 2025, with the Changan CS55 Plus crossover the first to be imported into Russia.
The cars will be assembled at the AMMKZ plant in Almaty. The main driver concerning the relocation is the recently imposed auto recycling fee.
Russia’s vehicle recycling system, officially known as the “utilization scheme,” involves a recycling fee (also referred to as a scrappage or utilization fee) imposed on the sale of both imported and domestically produced vehicles. This fee is intended to finance the eventual recycling of the vehicles. However, the system has faced criticism and challenges, including concerns about its impact on the automotive market, potential discrimination against imported vehicles, and the effective use of collected funds.
The fee is designed to cover the costs associated with vehicle recycling once they reach the end of their lifespan, while the amounts can vary, with higher fees applied to older vehicles or those with larger engine capacities.
The decision on the recycling fee is under discussion by the intergovernmental commission, and in light of Changan’s decision, it can be expected to face some scrutiny or at least amendment.
China’s share of the Russian auto market has rocketed from 5 to 50% in three years as Western brands exited the market. However, the rollout of Chinese manufacturers to Russia has been far from smooth, with too many entrants, problems with spare part supply chains, and a highly competitive market. This has also caught the attention of the Russian government, who wish to stimulate Russian auto production, even if these are foreign brands. Clearly, correctly balancing the Russian auto market to permit fair market access and introducing green auto recycling into the mix remains an ongoing process.
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