Recycling takes off: what has changed since October 1

Since October 1, the recycling collection for cars in Russia has increased by 70–85%. How will this affect prices and the auto market as a whole?

What to expect from the car market after October 1?

From October 1, 2024, new recycling fee rates came into force in Russia, which will lead to a significant increase in the cost of cars. The indexation of the fee affected both passenger cars and commercial vehicles, as well as special equipment. In the first stage, recycling collection rates increased by 70–85%, and further increases will occur annually by 10–20% until 2030.

Key changes for passenger cars with engine capacity:

- up to 1 liter the fee increased from 81,200 to 150,200 rubles.

- from 1 to 2 liters - from 306,000 to 556,200 rubles.

- more than 3.5 liters - from 1,235,200 to 2,285,200 rubles.

For whom the changes will be especially significant:

- Imported cars for resale. Importing cars from abroad will become significantly less profitable, especially for cars with an engine capacity of more than 3 liters.

- Individuals. For personal use, when importing cars with an engine capacity of up to 3 liters, the rates will remain the same - 3,400 rubles for new cars and 5,200 rubles for cars older than three years.

One of the key objectives of increasing the recycling fee is to support the domestic automobile industry and attract foreign brands to create production facilities in Russia. In theory, this should encourage international companies to localize the assembly of equipment within the country, which will reduce taxes and fees.

However, in practice, the implementation of such plans may encounter difficulties. For example, Chinese automakers, despite high sales volumes in Russia, are still in no hurry to invest in the construction of factories. The main reason is geopolitical instability, as well as the risk of technology leakage. Consequently, an increase in fees may lead to a decrease in the share of Chinese cars and special equipment in the Russian market.

The price increase caused by the new rates will have a strong impact on both private car owners and businesses, especially companies operating in the construction and logistics sectors.

However, increasing the recycling fee could create an incentive for the development of local production, which will have a positive impact on the Russian economy in the long term. In the coming years, the key factors will remain adaptation to new economic conditions and the choice in favor of domestic technology.