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The Chinese car industry against Russian drivers: they don’t need them

  • September 5, 2022
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China is a burning dream of the Ministry of Industry and Trade, which has no right to include it as an unequivocal ally in its plans. China is

China is a burning dream of the Ministry of Industry and Trade, which has no right to include it as an unequivocal ally in its plans. China is a blessed name, ringing in the offices of car dealers like the last hope and the frenzied belief in a miracle. But China is helping the Russian auto industry to get out of the hole it has safely fallen into, the AvtoVzglyad portal understood.

For six months, “hell sanctions” have been raging on the vast Russian car market, carefully fueled by domestic fraud, to which, in fact, all the years-long efforts to import replacement and localization have been diminished and fertilized by the voluntary betrayal of the world’s car giants, who have killed our country. reluctantly abandoned under pressure from their governments. It seems that the widest field has opened up to replace the departed and temporarily hidden brands, but suddenly it turned out: there is nothing to sow it with.

All of us – AVTOVAZ – frankly could not cope, and especially for the first of the above reasons. “Unexpectedly” it turned out that components essential for a modern car, such as ABS or airbags, are not produced in the Russian Federation. This is despite the fact that in 2018 there were cheerful reports of bringing the localization of the model range to almost 86%.

Naturally, in such scenarios, all eyes are on the east, on the World Workshop. And yes, optimists have found a topic for discussion here. Indeed, if in the first quarter of 2022, before the start of Western sanctions, Chinese brands occupied a frivolous 9.5% in the Russian market, they had already occupied 17% by the beginning of the summer and by the autumn, according to the insurances of the Avtostat agency, they had recovered a record of almost 26%!

Together with the entire market, Chinese brands showed a dismal sales decline until August. Admittedly, not as boring as the others. If new car sales overall fell 60% over the half year, Haval lost only 29%, Geely – 17%, Changan – 4%.

So, without even going into the mathematical jungle, we can say that the offensive was carried out not so much by increasing sales volumes, but by reducing losses. But August was truly triumphant for Chinese brands – compared to the same month of the previous year, their sales increased by a whopping 20%! Despite the fact that the market continued to dive, showing another failure of minus 64%.

But here the word is taken by pessimists. Evil tongues claim that brands from the Heavenly Realm owe their success mainly to car-sharing companies rushing to update their fleet and foreseeing problems with European spare parts in the near future.

The Chinese are in no rush to attract individual buyers. This is a tricky business, requiring certain financial investments, both indirect and direct – for advertising, sales promotion, etc. Moreover, it makes little sense to incur marketing costs, as the rush of major car manufacturers has pushed car prices skyrocketing.

The Chinese follow the general trend and regularly change the price tags on their products upwards. Since March, Haval cars have increased in price by 28-35%, Chery – by 32-47%, Geely – by 35-39%, Changan – by 20-29%.

The crossover comes from China at a cost of more than three million euros and is no longer in a stupor as it used to be – Geely Tugella or Haval Dargo, for example, easily cover this bar, not to mention the entire Exeed line. Meanwhile, population salaries have only risen in the minds of government statisticians, but certainly not in reality.

If the Chinese were to strive to drastically expand the sales market for their products in Russia, they could easily reduce about a third of their price at the current exchange rate of the ruble. However, Chinese companies are clearly heading in a different direction.

Competing on price with AVTOAVZ is not part of their plans at all. This is easy to see when you look at which models they are going to bring to the Russian market. Once cheap, Changan is going to sell the Uni-K crossover, which will cost at least 3,289,900 rubles. Chery threatens to introduce another of its sub-brands Omoda, not cheap either. The luxury brand Hongqi is preparing to conquer Russia, with its flagship E-HS9 electric crossover with an exorbitant price tag of almost nine million euros.

So it is clearly not worth expecting an influx of cheap Chinese cars in the near future, which will more than cover the shortage of cheap European cars.

Photo avtovzglyad.ru
  • Photo avtovzglyad.ru
  • photo of the manufacturer.

For six months, “hell sanctions” have been raging on the vast Russian car market, carefully fueled by domestic fraud, to which, in fact, all the years-long efforts to import replacement and localization have been diminished and fertilized by the voluntary betrayal of the world’s car giants, who have killed our country. reluctantly abandoned under pressure from their governments. It seems that the widest field has opened up to replace the departed and temporarily hidden brands, but suddenly it turned out: there is nothing to sow it with.

All of us – AVTOVAZ – frankly could not cope, and especially for the first of the above reasons. “Unexpectedly” it turned out that components essential for a modern car, such as ABS or airbags, are not produced in the Russian Federation. This is despite the fact that in 2018 there were cheerful reports of bringing the localization of the model range to almost 86%.

Naturally, in such scenarios, all eyes are on the east, on the World Workshop. And yes, optimists have found a topic for discussion here. Indeed, if in the first quarter of 2022, before the start of Western sanctions, Chinese brands occupied a frivolous 9.5% in the Russian market, they had already occupied 17% by the beginning of the summer and by the autumn, according to the insurances of the Avtostat agency, they had recovered a record of almost 26%!

Together with the entire market, Chinese brands showed a dismal sales decline until August. Admittedly, not as boring as the others. If new car sales overall fell 60% over the half year, Haval lost only 29%, Geely – 17%, Changan – 4%.

So, without even going into the mathematical jungle, we can say that the offensive was carried out not so much by increasing sales volumes, but by reducing losses. But August was truly triumphant for Chinese brands – compared to the same month of the previous year, their sales increased by a whopping 20%! Despite the fact that the market continued to dive, showing another failure of minus 64%.

But here the word is taken by pessimists. Evil tongues claim that brands from the Heavenly Realm owe their success mainly to car-sharing companies rushing to update their fleet and foreseeing problems with European spare parts in the near future.

The Chinese are in no rush to attract individual buyers. This is a tricky business, requiring certain financial investments, both indirect and direct – for advertising, sales promotion, etc. Moreover, it makes little sense to incur marketing costs, as the rush of major car manufacturers has pushed car prices skyrocketing.

The Chinese follow the general trend and regularly change the price tags on their products upwards. Since March, Haval cars have increased in price by 28-35%, Chery – by 32-47%, Geely – by 35-39%, Changan – by 20-29%.

The crossover comes from China at a price of over three million euros and is no longer in a stupor as it used to be – Geely Tugella or Haval Dargo, for example, easily cover this bar, not to mention the entire Exeed line. Meanwhile, population salaries have only risen in the minds of government statisticians, but certainly not in reality.

If the Chinese were to strive to drastically expand the sales market for their products in Russia, they could easily reduce about a third of their price at the current exchange rate of the ruble. However, Chinese companies are clearly heading in a different direction.

Competing on price with AVTOAVZ is not part of their plans at all. This is easy to see when you look at which models they are going to bring to the Russian market. Once cheap, Changan is going to sell the Uni-K crossover, which will cost at least 3,289,900 rubles. Chery is threatening to introduce another of its sub-brands Omoda, not cheap either. The luxury brand Hongqi is preparing to conquer Russia, with its flagship E-HS9 electric crossover with an exorbitant price tag of almost nine million euros.

So it is clearly not worth expecting an influx of cheap Chinese cars in the near future, which will more than cover the shortage of cheap European cars.

Source: Avto Vzglyad

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