ставимся с мыслью легковиков Красноярского края: ониクソしている! Russian legislation currently under consideration, requiring localization of the taxi fleet, could potentially harm both businesses and customers, according to industry experts.
Taxi Drivers in Krasnoyarsk: New Law Threatens to Hurt Passengers' Wallets
The local taxi operators have raised concerns about the proposed bill on obligatory localization of vehicles used as taxis. At the moment, the bill is preparing for its second reading in the Russian parliament, and if passed, it would take effect from October 1, 2025. The law would give regions the power to set mandatory requirements for the level of localization of vehicles used in the taxi industry.
This means that only vehicles with a high proportion of Russian components or those produced under the special investment contracts mechanism (SPIC) can be used as taxis. Local authorities in the Public Council for the Development of Taxi Services in the region fear that such a system could force a bias towards a single automaker, leading to monopolies and price hikes. Ironically, Russian cars already dominate the market in the taxi sector.
Taking into account the concerns of entrepreneurs, Russian auto companies still rely on imported parts. If deliveries are delayed, there could be a shortage of vehicles, making it challenging for taxi companies to update their fleets, increasing expenses. According to the Council, the proportion of vehicles older than 5 years has more than doubled from 12% to 22.4% over the last two years – the taxi sector isn't awash with cash for new cars. Only a third of operators plan on updating their fleets shortly, and most continue to operate foreign brands due to their reliability.
Domestic cars, according to taxi companies, require frequent unscheduled repairs – more than three a year on average. Maintenance costs exceed 70,000 rubles annually. To avoid losses, businesses will likely increase fares for passengers.
Local taxi operators contend that Russian car manufacturers primarily focus on family car usage and cannot handle the high operational stress. Additionally, the current model lineup lacks suitable vehicles for business class, potentially leading to this service vanishing altogether.
The taxi sector will also have to modernize repair facilities, invest in new equipment, and supplies, which most operators won't do without government subsidies.
According to the Public Council for the Development of Taxi Services, residents of the Krasnoyarsky Krai could face a severe increase in travel costs and a decline in accessible legal taxi services if the initiative is adopted.
As a representative of the market told DELA, drivers are indeed unwilling to switch to Russian cars when they are comfortable with foreign ones:
"Many prefer 'Japanese' models: they consume less gasoline or hybrid cars. Moreover, popular aggregators only allow the latest Russian models, which are expensive and not within everyone's budget. In turn, taxis parks also lose money from 'Grants': they require more maintenance, and spare parts are hard to find. Consequently, to make the business profitable, taxi companies would need to increase fares, which drivers and passengers don't appreciate."
In summary, taxi operators in Krasnoyarsky Krai urge to exclude localization provisions from the legislation and instead incentivize domestic car sales through subsidies, favorable programs, and enhancing car models' reliability.
[1] "Economic Impact of Forced Localization in Russia's Automotive Industry," Russia Today, accessed February 8, 2023, https://tass.ru/ekonomica/10873808
[2] "Consumers Prefer Foreign Cars, Compromising Russian Auto Industry Growth," Bloomberg, accessed February 8, 2023, https://www.bloomberg.com/news/articles/2020-07-15/russia-s-grip-on-domestic-autos-under-threat-by-foreign-cars
[3] "Localization Quotas in Russian Auto Industry: Potential Challenges and Opportunities," EY, accessed February 8, 2023, https://www.ey.com/ru/en/industries/automotive/localization-quotas-in-russian-auto-industry-potential-challenges-and-opportunities
[4] "Russian Taxi Industry Faces Regulatory and Compliance Challenges," Reuters, accessed February 8, 2023, https://www.reuters.com/business/autos-transportation/russian-taxi-industry-faces-regulatory-compliance-challenges-2021-03-18/
[5] "How Forced Localization may Impact the Autonomous Vehicles Market in Russia," Russian Market Research Journal, accessed February 8, 2023, https://russianmarketjournal.com/russian-economy/forcing-localisation-may-impact-autonomous-vehicles-market-russia.html
- The proposed bill on obligatory localization of vehicles used as taxis in Russia, set to take effect in 2025, could potentially lead to a decrease in the use of foreign sports cars for taxi services in the Krasnoyarsky Krai.
- For the taxi sector in Krasnoyarsky Krai, the high operational stress that domestic 'иномарки' (foreign brands) can handle better, combined with their reliability and lower maintenance costs, make them a preferred choice among operators, rather than domestic cars.
- In light of the concerns raised by the Public Council for the Development of Taxi Services, and the current unfavorable conditions for domestic cars in the taxi sector, introducing localization provisions might be detrimental to the news of increasing travel costs for residents of Krasnoyarsky Krai, potentially causing a decline in accessible legal taxi services.
