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Why the “Chinese” are in no hurry to conquer the empty Russian car market

  • September 20, 2022
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The former confidence of the majority of domestic bank car experts that Chinese automakers will easily replace the brands that have left and are thinking about leaving Russia

The former confidence of the majority of domestic bank car experts that Chinese automakers will easily replace the brands that have left and are thinking about leaving Russia has gradually evaporated somewhere. Portal “AvtoVzglyad” tells why we still do not know how long to wait for the massive arrival of the “Chinese” to the domestic market.

When it became known about the complete departure of GM, about the fall into a kind of “anabiosis” of the representative offices of Japanese, Korean and European car brands, admit it: many of us believed that hundreds of thousands of cars made in China would fall into the empty market niche. flow. Then Renault “escaped” from Russia. Yes, good morning, many mentally called after him. On this occasion, the Moscow authorities urgently created a kind of media “screen” on which a Russian folk “Moskvich”, from which the “whiskers, paws and tail” of the Chinese JAC protrude.

From that moment on people started to seriously think about the cognitive inconsistency: the Russian car market is actually empty, but not filled, although there are all possibilities for that. Even AvtoVAZ didn’t really give him anything at the time. And Chinese car brands, even though they have their representations in Russia, some dealer networks and something like model lines, are in no hurry to launch a wide trade offensive on our territory, without really increasing their supplies! After all, a real expansion cannot be called the recent entry into the domestic market of several mega-expensive, even according to the current Russian concepts of “Chinese”.

“Come in with the whole crowd as soon as possible,” the domestic car market literally shouts at the Chinese auto industry. And in the Middle Kingdom they don’t even itch. Only here and there is the electric vehicle part teeming… Where is the vaunted Chinese business acumen and the ability to immediately seize the opportunity to almost completely conquer the entire country market? In our case, none of this works. We explain why.

Now if you look at the subject, you see more or less noticeable activity in Russia only through Great Wall, which clinches its Haval-branded crossovers at a factory in the Tula region, and Chery, which now has a bunch of sub-brands. to our country at prices that quickly overtake the German “premium”. The rest of the “Chinese” in Russia are sitting still, not showing at least some understandable desire for expansion. With Geely, for example, everything is clear: they have Volvo on their balance sheet. Therefore, if the company seriously becomes active in Russia, the European public, the media and politicians will immediately “present” the Swedish brand.

At the same time, the company’s Belarusian assembly plant was effectively shut down. The fact is that before the beginning of the Ukrainian events, parts were delivered there by sea, then through the ports of the Baltic States, and then by rail to Belarus. Public transport is now closed.

All these JAC, FAW and Changan are actually state-owned companies that are clearly in line with the general line of the Chinese party and government: mentally with the Russians, but not eager to fall under secondary US sanctions. The Chinese GAC, although not a state-owned company, is extremely “tied” to the collaboration with FIAT, Honda, Isuzu, Mitsubishi and Toyota. So “smart” in Russia is also out of his hands for obvious reasons.

So it turns out that only Haval and Chery are more or less active with us. The first is from a private company that has decided to ignore sanctions risks. In addition, this manufacturer has already pumped serious money into its own car factory near Tula. And the Chery brand in Russia is, in fact, represented by a distributor company – Chery Automobiles Rus JSC. In that case, the Chinese of Chery Automobile can always deny it and say that they know nothing … At the moment there are no objective reasons that could change the alignment described above. Therefore, the expansion of the “Chinese” to the Russian market (or ever) will only take place after the Ukrainian crisis is resolved. Or when China itself is in exactly the same position as Russia is vis-à-vis the United States…

photo globallookpress.com
photo globallookpress.com

When it became known about the complete departure of GM, about the fall into a kind of “anabiosis” of the representative offices of Japanese, Korean and European car brands, admit it: many of us believed that hundreds of thousands of cars made in China would fall into the empty market niche. flow. Then Renault “escaped” from Russia. Yes, good morning, many mentally called after him. On this occasion, the Moscow authorities urgently created a kind of media “screen” on which a Russian folk “Moskvich”, from which the “whiskers, paws and tail” of the Chinese JAC stick out.

From that moment on people started to seriously think about the cognitive inconsistency: the Russian car market is actually empty, but not filled, although there are all possibilities for that. Even AvtoVAZ didn’t really give him anything at the time. And Chinese car brands, even though they have their representations in Russia, some dealer networks and something like model lines, are in no hurry to launch a wide trade offensive on our territory, without really increasing their supplies! After all, a real expansion cannot be called the recent entry into the domestic market of several mega-expensive, even according to the current Russian concepts of “Chinese”.

“Come in with the whole crowd as soon as possible,” the domestic car market literally shouts at the Chinese auto industry. And in the Middle Kingdom they don’t even itch. Only here and there is the electric vehicle part teeming… Where is the vaunted Chinese business acumen and the ability to immediately seize the opportunity to almost completely conquer the entire country market? In our case, none of this works. We explain why.

Now if you look at the subject, you see more or less noticeable activity in Russia only through Great Wall, which clinches its Haval-branded crossovers at a factory in the Tula region, and Chery, which now has a bunch of sub-brands. to our country at prices that quickly overtake the German “premium”. The rest of the “Chinese” in Russia are sitting still, not showing at least some understandable desire for expansion. With Geely, for example, everything is clear: they have Volvo on their balance sheet. Therefore, if the company seriously becomes active in Russia, the European public, the media and politicians will immediately “present” the Swedish brand.

At the same time, the company’s Belarusian assembly plant was effectively shut down. The fact is that before the beginning of the Ukrainian events, parts were delivered there by sea, then through the ports of the Baltic States, and then by rail to Belarus. Public transport is now closed.

All these JAC, FAW and Changan are actually state-owned companies that are clearly in line with the general line of the Chinese party and government: mentally with the Russians, but not eager to fall under secondary US sanctions. The Chinese GAC, although not a state-owned company, is extremely “tied” to the collaboration with FIAT, Honda, Isuzu, Mitsubishi and Toyota. So “smart” in Russia is also out of his hands for obvious reasons.

So it turns out that only Haval and Chery are more or less active with us. The first is from a private company that has decided to ignore sanctions risks. In addition, this manufacturer has already pumped serious money into its own car factory near Tula. And the Chery brand in Russia is, in fact, represented by a distributor company – Chery Automobiles Rus JSC. In that case, the Chinese of Chery Automobile can always deny it and say that they know nothing … At the moment there are no objective reasons that could change the alignment described above. Therefore, the expansion of the “Chinese” to the Russian market (or ever) will only take place after the Ukrainian crisis is resolved. Or when China itself is in exactly the same position as Russia is vis-à-vis the United States…

Source: Avto Vzglyad

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