Chinese carmakers have seen a major expansion in their presence in Russia, with car exports to the country surpassing exports to any other nation during the first five months of this year. According to Bloomberg, Chinese car manufacturers delivered around 287,000 vehicles to Russia between January and May, almost double the number of cars exported to Mexico, China’s next largest auto sales market. This surge in Chinese car exports to Russia comes as European, American, and Japanese car brands have withdrawn from the country following Western sanctions.
The China Association of Automobile Manufacturers released customs data showing that in the first five months of 2023, Chinese car exports to Russia surpassed the previous year’s total. In 2022, China exported approximately 162,000 vehicles to Russia, demonstrating a significant increase year-on-year. The top three Chinese car brands in Russia were Chery, Geely, and Great Wall, together accounting for a third of all new car sales in the country in the first half of the year, according to the Association of European Businesses.
While Chinese carmakers have become dominant players in the Russian market, they face potential pressure due to their business operations in the country. Ukraine has designated Geely and Great Wall as “sponsors of war,” adding them to a list of more than two dozen companies that continue to do business in Russia. However, some experts argue that Chinese automakers have managed to fly under the radar due to their relative lack of presence in the EU.
In recent news, Russian analytic agency Autostat reported that car sales in Russia have more than doubled in June compared to the same period the previous year, indicating a strong recovery from the impact of Western sanctions. Economic restrictions and political pressure made it challenging for many international automakers to continue operations in Russia, leading to their withdrawal from the market or suspension of car deliveries and production activities.
Furthermore, it is anticipated that Chinese cars will capture a 60% share of total car sales in Russia this year, according to dealer chain Autodom. This significant market dominance by Asian brands demonstrates how they are effectively filling the void left by Western car manufacturers. With their increased presence in the Russian market, Chinese automakers are poised to capitalize on the growing demand for vehicles in the country.
In conclusion, Chinese carmakers have witnessed remarkable growth in their car exports to Russia, surpassing exports to any other country. As Western car brands withdrew from the Russian market due to sanctions, Chinese brands such as Chery, Geely, and Great Wall have taken advantage of the opportunity to expand in the country. With a dominant market share and increasing sales, the future looks promising for Chinese automakers in Russia’s automotive industry.
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