Chinese manufacturers now make up more than 38% of new car sales in Russia, according to a recent report by Autostat Analytic Agency. The share was just around 9.6% in January 2022 before the Russian invasion of Ukraine began.
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According to Sergey Tselikov, the head of Autostat:
“Russian and Chinese brands are increasing their market share in Russia. The Russian companies boosted their market share from 20% to 41% in a year, while Chinese brands increased from under 10% to around 38%. The rising market share of these two countries’ automotive brands reflects the fall of other countries’ brands. Korean brand share fell from 24% to 9%, European brand share fell from 27% to 6%, and Japanese brand share fell from 18% to 6%.”
Owing to international sanctions and other factors such as inflation, vehicle shortages, the withdrawal of European, Japanese, and Korean automobile brands from the market, logistics issues, and so on, Russia sold approximately 680,000 cars domestically compared to 1.17 million in 2021, rendering a 41% year on year decline. Despite the fact that the whole market has decreased by nearly half, the Russian and Chinese brands have grown significantly, and sales have remained steady.
Russia had 3,164 vehicle dealers as of mid-January 2023. The share of European brand dealers among them fell from 27.5% in January 2022 to 22.8%. (January 2023). The proportion of Japanese brand dealers fell from 20.6% to 16.4%, while the proportion of American brand dealers fell from 4.1% to 0.7%.
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The share of Chinese brand dealers among all new car dealerships in Russia was 33.3% in January 2023. In 2022, that figure was 22.4%. Aside from Chinese brands, the share of local Russian brands has increased, with the proportion of dealers rising from 13% to 14.3%. The number of Korean brand dealers remained rather unchanged, with a 12.4% share in 2022 and a 12.5% share in 2023.
Chinese car companies first entered Russia as early as 2004. That year, only 150 Chinese cars were sold in the Russian market. It wasn’t until 2013 that the annual sales volume exceeded 100,000 vehicles with the largest Chinese players being Chery, Great Wall Motors (GWM), and Geely. Analysts predict Chinese auto brands could account for more than 40% of sales in Russia by the end of 2023. Russia is now the 6th-largest export destination for Chinese automotive products, which includes vehicles and parts, according to China’s Association of Automobile Manufacturers.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com