West's loss is China's gain, captures Russian car market after rivals depart

Chinese brands account for almost a third of Russia's car market, data shared with Reuters shows, as the sector more than any other shows China's growing importance to the economy following the exodus of Western companies.

By: Reuters
| Updated on: 09 Dec 2022, 07:25 AM
Follow us on:
Follow us on:
File photo of a Zeekr 001 electric vehicle by Geely. The Chinese carmaker's sale in Russia, along with others like Haval and Chery, has surged to 16,138 units in November, almost double of what they sold in January. (REUTERS)
File photo of a Zeekr 001 electric vehicle by Geely. The Chinese carmaker's sale in Russia, along with others like Haval and Chery, has surged to 16,138 units in November, almost double of what they sold in January. (REUTERS)
File photo of a Zeekr 001 electric vehicle by Geely. The Chinese carmaker's sale in Russia, along with others like Haval and Chery, has surged to 16,138 units in November, almost double of what they sold in January. (REUTERS)
File photo of a Zeekr 001 electric vehicle by Geely. The Chinese carmaker's sale in Russia, along with others like Haval and Chery, has surged to 16,138 units in November, almost double of what they sold in January.

New sales of passenger cars and light commercial vehicles (LVC) are down almost 61% year-on-year, as Western sanctions curb Russia's access to some materials and falling demand and high prices further hobble the sector.

But sales of Chinese branded passenger cars, including Haval, Chery and Geely have surged, rising to 16,138 units in November, almost double the 8,235 in January, while market share reached 31.3% from 9.6%, data from Russian analytical agency Autostat showed.

Similar Products

Find more Cars
Haval H6 (HT Auto photo)
UPCOMING
1498 cc | Diesel Manual
₹15 - 20 Lakhs* *Expected Price
View Details
Tata Harrier 2023 (HT Auto photo)
UPCOMING
1956 cc | Diesel | Manual
₹15 - 23 Lakhs* *Expected Price
View Details
Tata Curvv Ev Concept (HT Auto photo)
UPCOMING
| Electric | Automatic
₹15 - 20 Lakhs* *Expected Price
View Details
Toyota Urban Cruiser Hyryder (HT Auto photo)
1490 cc | Hybrid (Electric + Petrol) | Automatic (CVT) | 27.97 kmpl | 91 bhp
₹15.11 - 18.99 Lakhs***Ex-showroom price
Add to compare
Check latest offers
Mahindra Xuv 400 Ev (HT Auto photo)
| Electric | Automatic
₹15.99 - 18.99 Lakhs***Ex-showroom price
Add to compare
Check latest offers
Tata Safari 2023 (HT Auto photo)
UPCOMING
1956 cc | Diesel | Manual
₹16 - 24 Lakhs* *Expected Price
View Details

Russia's new passenger car and LCV sales were 46,403 in November, the Association of European Businesses (AEB) said on Tuesday, and sales should reach around 600,000 for this year overall.

"There is little production of Western car brands and few imports, so the market is divided between the Russian and Chinese car industries," Russian automotive analyst Vladimir Bespalov told Reuters.

Russian cars satisfy demand at lower prices - up to about 1.5 million roubles ($23,961), and Chinese are also taking over the Western niche of prices above 2.5 million roubles.

In one high-profile case, a Chinese car is masquerading as Russian one. Engine parts from China's JAC, whose design, engineering and platform are being used to revive the Soviet-era Moskvich, were clearly visible at the brand's relaunch last month.

Moskvich said it is working with a foreign partner, but would not name it. JAC did not respond to a request for comment.

Most Western automakers, who have fought with domestic carmakers for market share since they began building factories in Russia in the early 2000s, ceased operations after Russia sent tens of thousands of troops into Ukraine in February.

The Moskvich is produced at a plant taken over from French carmaker Renault, while Nissan, Mercedes and Ford are among the others that have left Russia.

If the economic situation remains unchanged, Chinese producers, including the Moskvich, could account for around 35% of sales in Russia next year, Bespalov said, estimating the market would recover to 800,000 units.

In monetary terms, the share could surpass 40% of what he expects will be a 1.5-trillion-rouble market in 2023.

China's sales volumes in Russia pale by comparison with in its domestic market, where in November they were about 35 times higher than in Russia.

For the first 10 months of the year, Russia was the sixth-largest export destination for Chinese automotive products, which includes vehicles and parts, according to China's Association of Automobile Manufacturers, accounting for 3.9%, virtually unchanged from the same period last year. ($1 = 62.6000 roubles)

(Reporting by Gleb Stolyarov; Editing by Alexander Marrow, Josephine Mason and Barbara Lewis)

First Published Date: 09 Dec 2022, 07:25 AM IST
TAGS: Geely Haval Chery
Recommended for you
View all
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
50% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing
Rs. 299 Rs. 604
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
20% OFF
Involve Your Senses One Musk Organic Car Perfume Bar, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g Car Accessories interior car perfumes and fresheners
Rs. 319 Rs. 399
65% OFF
ELV Car Mount Adjustable Car Phone Holder Universal Long Arm, Windshield for Smartphones - Black
Rs. 348 Rs. 999
13% OFF
Jopasu Car Duster
Rs. 755 Rs. 869
9% OFF
ShineXPro Microfiber Car Cleaning Cloth - OG Soft 500 GSM Extra Large (35x75 CM) Microfiber Cloth for Car and Bike - Suede Edging for Scratchless Drying and Detailing (Pack of 2)
Rs. 499 Rs. 549
13% OFF
Pidilite WD-40, Multipurpose Car care Spray, 420ml Rust Remover, Lubricant, Stain Remover, Powerful Chimney Cleaner, Degreaser, and Bike Chain Cleaner & Chain Lube (341g)
Rs. 325 Rs. 375
68% OFF
ORJILO Super Soft Microfiber Car Duster Exterior with Extendable Handle, Car Brush Duster for Car Cleaning Dusting - Grey
Rs. 319 Rs. 999
65% OFF
Portronics AUTO 12 in-Car Bluetooth Receiver for Handsfree Calling, Music System, Supports All Smartphones (Black)
Rs. 525 Rs. 1,499
61% OFF
HSR Car Accessories in 10PCS/1Set Car Wiper Detergent Effervescent Tablets Washer Auto Windshield Cleaner Glass Wash Cleaning Tablets
Rs. 197 Rs. 499

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city