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The number of Chinese brands in the Russian market is growing at an alarming rate. Will the expansion really continue until the entire automotive industry of the Celestial
As it was said in the old beautiful literary anecdote? Pushkin sits at his house and thinks:
– I’m a genius, okay. Gogol is also a genius. But after all, both Tolstoy is a genius and Dostoyevsky, God rest his soul, is a genius. When will it end? This is where it all ended.
Why am I? Yes, of course, back to your sheep. More precisely, not for their own, but for the Chinese, and not for sheep, but for car brands. They climb into our crippled market like bedbugs on a sleeping homeless person, and there is no end to them. What exactly are they wrong about? The shortage of cars in Russia is terrible – with a minimum supply of 1.5 million units necessary for the development of the industry, sellers received only slightly more than 700,000 cars and light commercial vehicles last year. This year, according to the most optimistic forecasts, about 1 million units will be purchased, which also cannot be considered a great achievement.
The anti-monopoly authorities in Russia are only minding their own business, no one really monitors the price level, and here there is room for the broad Chinese soul to turn around. The ministries and departments, which are supposed to look after the economic interests of the country, gave up on the device, so you don’t have to worry about all kinds of localizations and organizations of full-cycle production, but simply import finished cars and merrily sell them to the natives, mad with disturbances.
In general, go ahead, China! When else will such luck show up that European, Japanese and Korean competitors will randomly dump 1/9 of the country? And Chinese companies benefit from their unexpected good fortune. If in 2021 the share of car manufacturers from China accounted for 9.8% of the Russian market, then in May 2023 it was 5 times larger – up to 46%.
Currently, 18 Chinese car brands have established themselves in Russia, under their own name or hidden behind a native name. At least three others benefit from permitted parallel imports: Jetta, LiXiang and Zeekr. In recent months, Jetour, BAIC and Hongqi have come to our country. If we take into account that in modern China there are 99 local brands produced by 40 industrial groups, then things get a little uncomfortable – well, how can they all rush to our God-saved homeland for easy money?
But back to our literary anecdote. It seems it all ended there. The gold-bearing areas have been cordoned off, their development has begun, and the Chechako will no longer be allowed here. In May 2023, 72,171 new passenger cars were registered in Russia. Of this number, AVTOVAZ products accounted for 30%, and another 30% – the three leading Chinese brands Chery, Haval and Geely. The other two dozen multinational brands are content with 40% of the market.
Both monsters and little things will defend their positions with all their might: the first – to expand the captured strongpoint, the second – to cling to their small share. Both those and others will do everything to avoid those who yawned and did not have time to spread to the front to the portion of the pie. Of course, the particularly sneaky will still be able to seep into Russia not by washing, but by skating, but there will be only a few such lucky ones.
In addition, of the 10 largest Chinese car manufacturers, we still don’t have SAIC alone, so in general no serious attack on the current status quo is to be expected anywhere. Most likely, before the lifting of the sanctions, the composition of the market as a whole was determined. As the economic situation stabilizes, the laggards will gradually overtake the leaders and the sharp gap between them will level out over time. However, experience shows that predictions rarely come true. So let’s see what other surprises life will bring us.
As it was said in the old beautiful literary anecdote? Pushkin sits at his house and thinks:
– I’m a genius, okay. Gogol is also a genius. But after all, both Tolstoy is a genius and Dostoyevsky, God rest his soul, is a genius. When will it end? This is where it all ended.
Why am I? Yes, of course, back to your sheep. More precisely, not for their own, but for the Chinese, and not for sheep, but for car brands. They climb into our crippled market like bedbugs on a sleeping homeless person, and there is no end to them. What exactly are they wrong about? The shortage of cars in Russia is terrible – with a minimum supply of 1.5 million units necessary for the development of the industry, sellers received only slightly more than 700,000 cars and light commercial vehicles last year. This year, according to the most optimistic forecasts, about 1 million units will be purchased, which also cannot be considered a great achievement.
The anti-monopoly authorities in Russia are only minding their own business, no one really monitors the price level, and here there is room for the broad Chinese soul to turn around. The ministries and departments, which are supposed to look after the economic interests of the country, gave up on the device, so you don’t have to worry about all kinds of localizations and organizations of full-cycle production, but simply import finished cars and merrily sell them to the natives, mad with disturbances.
In general, go ahead, China! When else will such luck show up that European, Japanese and Korean competitors will randomly dump 1/9 of the country? And Chinese companies benefit from their unexpected good fortune. If in 2021 the share of car manufacturers from China accounted for 9.8% of the Russian market, then in May 2023 it was 5 times larger – up to 46%.
Currently, 18 Chinese car brands have established themselves in Russia – under their own name or hidden behind a native name. At least three others benefit from permitted parallel imports: Jetta, LiXiang and Zeekr. In recent months, Jetour, BAIC and Hongqi have come to our country. If we take into account that in modern China there are 99 local brands produced by 40 industrial groups, then things get a little uncomfortable – well, how can they all rush to our God-saved homeland for easy money?
But back to our literary anecdote. It seems it all ended there. The gold-bearing areas have been cordoned off, their development has begun, and the Chechako will no longer be allowed here. In May 2023, 72,171 new passenger cars were registered in Russia. Of this number, AVTOVAZ products accounted for 30%, and another 30% – the three leading Chinese brands Chery, Haval and Geely. The other two dozen multinational brands are content with 40% of the market.
Both monsters and little things will defend their positions with all their might: the first – to expand the captured strongpoint, the second – to cling to their small share. Both those and others will do everything to avoid those who yawned and did not have time to spread to the front to the portion of the pie. Of course, the particularly sneaky will still be able to seep into Russia not by washing, but by skating, but there will be only a few such lucky ones.
In addition, of the 10 largest Chinese car manufacturers, we still don’t have SAIC alone, so in general no serious attack on the current status quo is to be expected anywhere. Most likely, before the lifting of the sanctions, the composition of the market as a whole was determined. As the economic situation stabilizes, the laggards will gradually overtake the leaders and the sharp gap between them will level out over time. However, experience shows that predictions rarely come true. So let’s see what other surprises life will bring us.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
