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Why Russian business is in no hurry to switch to Chinese cars

  • January 12, 2024
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The revival of the Russian car market last year – just over a million passenger cars and about three hundred thousand units of light commercial vehicles were sold

The revival of the Russian car market last year – just over a million passenger cars and about three hundred thousand units of light commercial vehicles were sold – should, in theory, inspire confidence among compatriots that a rapid return to pre-crisis car sales figures will occur. However, judging by the behavior of commercial structures, in which it is customary to count every cent and assess risks, cars from the PRC are not an option for investment. However, judge for yourself.

According to statistics from the Association of European Businesses (AEB), in 2023 only less than 30% of all cars sold would be owned by legal entities. Everything else ended up in the family garages of the ‘physicists’. For some reason, the “Eurikas” did not really like the new Chinese offerings, so the hopes of sellers of oriental technology to quickly occupy corporate parks and quickly squeeze out the vintage cars from them did not come true.

Taxi drivers reluctantly stepped onto this ‘slippery slope’; they had no choice, but those who had the opportunity for at least minimal variability stuck with their own. Simply put: lease cars were purchased, their maintenance was carried out in-house and their lifespan was extended. It seems that entrepreneurs do not have much confidence in new market players. Which is especially clearly visible in the example of comtrans.

Gazelle has traditionally been a leader in the light commercial vehicle segment. Behind her comes UAZ with its crafts, a significant part of which goes to the Northern Military District zone. “Sobol”, the smallest “Gazelle”, is hot on the heels of the residents of Ulyanovsk. Then the newly minted Sollers alternate with commercial modifications from LADA, and the top ten is closed by the only “pure” representative of the Middle Kingdom – DFM Captain-T with 158 ​​cars sold.

And such a ‘misconception’ is more than understandable, because comtrans is about the costs of service and maintenance, from which the price per kilometer follows, but also about the time of forced downtime while waiting for service. And according to these indicators, it looks like the Chinese are losing outright. Let’s draw conclusions…

  • AEB slide.
  • AEB slide.

According to statistics from the Association of European Businesses (AEB), in 2023 only less than 30% of all cars sold would be owned by legal entities. Everything else ended up in the family garages of the ‘physicists’. For some reason, the “Eurikas” did not really like the new Chinese offerings, so the hopes of sellers of oriental technology to quickly occupy corporate parks and quickly squeeze out the vintage cars from them did not come true.

Taxi drivers reluctantly stepped onto this ‘slippery slope’; they had no choice, but those who had the opportunity for at least minimal variability stuck with their own. Simply put: lease cars were purchased, their maintenance was carried out in-house and their lifespan was extended. It seems that entrepreneurs do not have much confidence in new market players. Which is especially clearly visible in the example of comtrans.

Gazelle has traditionally been a leader in the light commercial vehicle segment. Behind her comes UAZ with its crafts, a significant part of which goes to the Northern Military District zone. “Sobol”, the smallest “Gazelle”, is hot on the heels of the residents of Ulyanovsk. Then the newly minted Sollers alternate with commercial modifications from LADA, and the top ten is closed by the only “pure” representative of the Middle Kingdom – DFM Captain-T with 158 ​​cars sold.

And such a ‘misconception’ is more than understandable, because comtrans is about the costs of service and maintenance, from which the price per kilometer follows, but also about the time of forced downtime while waiting for service. And according to these indicators, it looks like the Chinese are losing outright. Let’s draw conclusions…

Source: Avto Vzglyad

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