A New Utilization Fee in Russia: Impact on Imported Cars Over 160 HP, Buyer Implications, and Price Forecasts Through 2030
As of December 1, 2025, a revised procedure for calculating the utilization fee on imported passenger cars has come into effect. Under the new regulations, the basic rate of 20,000 rubles will now include coefficients that depend not only on engine displacement but also on its power. This means that vehicles with an engine capacity exceeding 160 HP will now be subject to commercial rates—leading to fees that could rise into the hundreds of thousands or even millions of rubles, compared to just a few thousand previously.
Meanwhile, for vehicles with engines up to 160 HP, the preferential utilization fee remains in place—government estimates indicate that around 80% of the vehicle fleet falls into this category. These cars will continue to be charged the previous low rate (3,400 rubles for new models and 5,200 rubles for those older than three years). However, the combination of the new utilization fee and existing customs duties is leading to a sharp increase in the cost of importing cars.
Who Will See Price Increases on Imported Cars and By How Much?
The new regulations will particularly affect popular mid-range and premium vehicles in Russia with engines over 160 HP. For example:
- Toyota Camry 3.5: additional utilization fee of approximately 2.9 million rubles (almost equal to the cost of the car itself).
- Kia K5: approximately 795,000 rubles in additional fees.
- BMW M5: additional ~4.0 million rubles.
- Lixiang L9: the utilization fee increased from 3,400 rubles to almost 2.0 million rubles.
These examples illustrate the scale of price increases: the final purchase price of an imported vehicle, including the new fee, will be significantly higher than before.
Surge in Demand Prior to Fee Increase
Expectations of sharp price increases have already triggered a surge in market activity even before the official implementation of the changes. In October 2025, nearly 12% of all passenger vehicle sales were attributed to "gray" imports (almost 19,700 cars), as buyers rushed to bring in vehicles under the old rules. Customs in the Far East operated around the clock to process as many cars as possible before December 1.
At the same time, new passenger car sales hit a record high of 171,200 units in October—the highest in the past 3.5 years. Without the previous discounts and promotions, the average purchase price increased by about 20% over three months. This confirms high short-term demand and the public's readiness to make purchases in anticipation of significant changes in conditions.
Government Objectives: Supporting Domestic Auto Industry and Budget Revenue
In official statements, the new utilization fee is positioned as a tool to support the domestic auto industry. According to First Deputy Prime Minister Denis Manturov, the new scheme aims to make local vehicle production in Russia more economically viable than importing. Minister of Industry and Trade Anton Alikhanov noted that cars up to 160 HP account for about 80% of the fleet, so most private buyers "are not affected" by the new rules. President Putin also emphasized the need for the utilization fee to support local manufacturers.
However, the decline in imported cars may result in significant budget shortfalls. Experts estimate that annual revenue losses could reach up to 300 billion rubles (for comparison: in 2024, the utilization fee contributed approximately 1.1 trillion rubles to the federal budget, of which more than 600 billion rubles came from imports).
Consequences for Buyers and the Market
The increase in the utilization fee will instantly raise the "entry barrier" for the market of used imported cars, making many models inaccessible to private individuals. Average buyers will face a significant increase in vehicle costs: the utilization fee will comprise a substantial part of the final price. This is expected to lead to a decline in demand for mid- to high-power imported cars and push vehicle owners towards cheaper cars with engines up to 160 HP or to domestic alternatives.
Overall, this indicates a substantial market restructuring: foreign brands will lose market share, while local production may receive additional impetus. According to estimates from the Ministry of Industry and Trade, sales of passenger cars could drop by 13-16% in 2025 (to 1.3-1.35 million units), reflecting consumer reactions to rising prices and changes in tax burdens.
Future Dynamics: Utilization Fee Projections Through 2030
Increases in the utilization fee are not expected to stop here. Starting January 1, 2026, rates will increase by an additional 25%, followed by annual indexing of 10-20% through 2030. Experts estimate that if such a schedule continues, by the end of the decade, fees for the most powerful imported cars could exceed 10 million rubles, rendering their import economically unviable.
- On January 1, 2026, utilization fee rates will rise by 25%.
- Annual indexing of 10-20% will occur from 2027 to 2030.
- By 2030, the utilization fee for vehicles exceeding 493 HP could exceed 10 million rubles.
Conclusions
The new rules for calculating the utilization fee have radically altered the conditions for importing vehicles into Russia. Now, the price of an imported car depends not only on engine size but also on its power, leading to a rapid increase in prices for many models. In the short term, this will restrict access to expensive imports and intensify demand for more affordable alternatives, while in the long term, it will consolidate the advantage of domestic producers and reduce the presence of powerful foreign vehicles in the market.
For investors, these changes signify a transformation within the automotive market in Russia and the CIS. Foreign brands will lose market share, while investments in local manufacturing may become more attractive. Furthermore, the total volume of auto sales is likely to decline: owning a powerful imported vehicle will become a one-time luxury due to increased tax burdens and import restrictions.
