Vertical Racing: How the Chinese Issue Is Killing the Russian Auto Industry
December 14, 2022
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The Americans, Germans and French left. The Koreans hid. One hope remained for the Chinese, although here it is not without nuances. How brands from the Middle Kingdom
The Americans, Germans and French left. The Koreans hid. One hope remained for the Chinese, although here it is not without nuances. How brands from the Middle Kingdom felt in Russia in the penultimate month of the year, the AvtoVzglyad portal found out.
At the end of the year, China’s automakers, previously sluggish, decided to step on the gas. Usually, colds slow down vital processes, but for some reason it turned out the other way around. Guessing about changes in the economic environment is a thankless task, as marketing experts’ assumptions usually turn out to be sucked out of thin air. But still, in retrospect it is possible to see some revival in the market.
According to the Avtostat agency, the Chery brand took first place among foreign manufacturers, far behind the undisputed leader LADA. In November, Russians bought 5,537 cars of this brand, which is 84.3% more than in the same month last year. Haval takes second place with 4467 cars purchased by our compatriots. Here the breakthrough is smaller – 13.9%. On the third – we see Geely, which found buyers for 3351 cars. Growth – 42.8%.
We can also be pleased with the relatively new Exeed brand, which has increased its presence in the Russian market by as much as 328% – to 1609 cars. But here, however, the effect of a low base is of influence, as in November 2021 only 367 buyers chose this logo. Somewhere among those who left Russia and still undecided brands, JAC was lost – 326 cars purchased with an increase of 84.2%.
Here is such an interesting picture, which can be interpreted in any way. However, there are also several objective points. The first is that the growth of sales volumes of Chinese manufacturers does not depend on the localization of production. At least at this stage. After all, Chery, which has surpassed its competitors, does not have its production sites in Russia and its immediate vicinity. But this didn’t stop it from significantly outperforming both Haval, which has a working factory near Tula, and Geely, which is comfortably nestled in friendly Belarus, in both absolute and relative terms.
Here it would be appropriate to recall the winged words that the ancient Greek hero Odysseus addressed to his nanny: “Old one, rejoice quietly! Hold on, don’t shout with pleasure!” Indeed, one should not be particularly misled by the apparently positive trend of expanding the presence of Chinese cars in the domestic market. After all, we are comparing the current data with November 2021, one of the worst months of last year Year, the entire second half of which already showed a strong decline But nevertheless even Chery, with its record sales in November, would then have finished in 6th place, and after 11 months it would have been a completely non- price have taken 13th position, while it now flaunts in fourth place.
Undoubtedly, car manufacturers from the Middle Kingdom are gradually gaining momentum, but they act according to the Latin proverb “Hurry up slowly”. They are given almost unlimited opportunities in the vacuum created in the Russian market, but they are in no hurry to take advantage of a unique opportunity. The sword of Damocles of US secondary sanctions terrifies them as much as businessmen from other countries. And it is hardly reasonable to expect them to rush headlong into Russia and risk losing a significant portion of the world’s profits in one fell swoop.
Photo: globallookpress.com
Photo: globallookpress.com
At the end of the year, China’s automakers, previously sluggish, decided to step on the gas. Usually, colds slow down vital processes, but for some reason it turned out the other way around. Guessing about changes in the economic environment is a thankless task, as marketing experts’ assumptions usually turn out to be sucked out of thin air. But still, in retrospect it is possible to see some revival in the market.
According to the Avtostat agency, the Chery brand took first place among foreign manufacturers, far behind the undisputed leader LADA. In November, Russians bought 5,537 cars of this brand, which is 84.3% more than in the same month last year. Haval takes second place with 4467 cars purchased by our compatriots. Here the breakthrough is smaller – 13.9%. On the third – we see Geely, which found buyers for 3351 cars. Growth – 42.8%.
We can also be pleased with the relatively new Exeed brand, which has increased its presence in the Russian market by as much as 328% – to 1609 cars. But here, however, the effect of a low base is of influence, as in November 2021 only 367 buyers chose this logo. Somewhere among those who left Russia and still undecided brands, JAC was lost – 326 cars purchased with an increase of 84.2%.
Here is such an interesting picture, which can be interpreted in any way. However, there are also several objective points. The first is that the growth of sales volumes of Chinese manufacturers does not depend on the localization of production. At least at this stage. After all, Chery, which has surpassed its competitors, does not have its production sites in Russia and its immediate vicinity. But this didn’t stop it from significantly outperforming both Haval, which has a working factory near Tula, and Geely, which is comfortably nestled in friendly Belarus, in both absolute and relative terms.
Here it would be appropriate to recall the winged words that the ancient Greek hero Odysseus addressed to his nanny: “Old one, rejoice quietly! Hold on, don’t shout with pleasure!” Indeed, one should not be particularly misled by the apparently positive trend of expanding the presence of Chinese cars in the domestic market. After all, we are comparing the current data with November 2021, one of the worst months of last year Year, the entire second half of which already showed a strong decline But nevertheless even Chery, with its record sales in November, would then have finished in 6th place, and after 11 months it would have been a completely non- price have taken 13th position, while it now flaunts in fourth place.
Undoubtedly, car manufacturers from the Middle Kingdom are gradually gaining momentum, but they act according to the Latin proverb “Hurry up slowly”. They are given almost unlimited opportunities in the vacuum created in the Russian market, but they are in no hurry to take advantage of a unique opportunity. The sword of Damocles of US secondary sanctions terrifies them as much as businessmen from other countries. And it is hardly reasonable to expect them to rush headlong into Russia and risk losing a significant portion of the world’s profits in one fell swoop.
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.