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What does the lifting of corona restrictions in China mean for the Russian car market?

  • December 27, 2022
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It was recently announced that in China, immediately after our New Year’s holiday, the local “thermonuclear” anti-corona measures will be cancelled. How this will affect the average Russian

What does the lifting of corona restrictions in China mean for the Russian car market?
It was recently announced that in China, immediately after our New Year’s holiday, the local “thermonuclear” anti-corona measures will be cancelled. How this will affect the average Russian car owner, read the material from the AvtoVzglyad portal.

From the beginning of 2020 to this day, the whole world has watched with shudder as the first sneeze of a homeless person placed entire megacities of China in a vicious quarantine. And so, from January 8, 2023, the authorities of the Celestial Empire will officially stop equating the “corona” in terms of danger of plague or cholera. After the New Year holiday, China will also treat COVID-19 as something like the flu – just like the rest of the world. What will happen next? For starters, Eastern New Year. Starting January 22, the Chinese will be “banging like crazy” for a few weeks, also marking the end of the era of COVID-19 in their particular country.

And then the economy of the Middle Kingdom will quickly regain momentum lost to COVID-19. First, factories will increase the output of finished products and components, including those for the automotive industry. That will certainly please all car manufacturers in the world, including AVTOVAZ with UAZ. Secondly, the absence of lockdowns and the abolition of brutal anti-epidemiological measures at the borders and in logistics centers will significantly accelerate the delivery to Russia of everything and everyone purchased by our industrialists in China. This will allow Chinese car manufacturers to accelerate and expand the import of their cars into the Russian Federation.

At the same time, the market of our country will have the opportunity to really fill up with cars, eliminating the chronic shortage of supply and the resulting high costs of cars. Which is also great. Third, the revival of China’s industry will be accompanied by a sharp increase in the consumption of oil, gas, metals, wood and other items. That is, everything that Russia exports. An increase in demand from a black hole like the Chinese economy will inevitably lead to a sharp rise in commodity prices on a global scale.

Including hydrocarbons, the prices of which are highly dependent on the exchange rate of the Russian ruble. Our currency will have every chance to strengthen strongly against the same Chinese Yuan. That in the conditions of real saturation of the domestic market with Chinese cars will lead to a decrease in their sales prices. At the same time, they will become more accessible to the Russian car enthusiast, their sales will grow, and the domestic car market will have a chance to rise from the ruins in which it is now. Therefore, we will “keep our fingers crossed” for the full recovery of China’s economy after two years of coronavirus. Our main hope is to remember what it is: a more or less normal automotive industry.

globallookpress.com’s photo

From the beginning of 2020 to this day, the whole world has watched with shudder as the first sneeze of a homeless person placed entire megacities of China in a vicious quarantine. And so, from January 8, 2023, the authorities of the Celestial Empire will officially stop equating the “corona” in terms of danger of plague or cholera. After the New Year holiday, China will also treat COVID-19 as something like the flu – just like the rest of the world. What will happen next? For starters, Eastern New Year. Starting January 22, the Chinese will be “banging like crazy” for a few weeks, also marking the end of the era of COVID-19 in their particular country.

And then the economy of the Middle Kingdom will quickly regain momentum lost to COVID-19. First, factories will increase the output of finished products and components, including those for the automotive industry. That will certainly please all car manufacturers in the world, including AVTOVAZ with UAZ. Secondly, the absence of lockdowns and the abolition of brutal anti-epidemiological measures at the borders and in logistics centers will significantly accelerate the delivery to Russia of everything and everyone purchased by our industrialists in China. This will allow Chinese car manufacturers to accelerate and expand the import of their cars into the Russian Federation.

At the same time, the market of our country will have the opportunity to really fill up with cars, eliminating the chronic shortage of supply and the resulting high costs of cars. Which is also great. Third, the revival of China’s industry will be accompanied by a sharp increase in the consumption of oil, gas, metals, wood and other items. That is, everything that Russia exports. An increase in demand from a black hole like the Chinese economy will inevitably lead to a sharp rise in commodity prices on a global scale.

Including hydrocarbons, the prices of which are highly dependent on the exchange rate of the Russian ruble. Our currency will have every chance to strengthen strongly against the same Chinese Yuan. That in the conditions of real saturation of the domestic market with Chinese cars will lead to a decrease in their sales prices. At the same time, they will become more accessible to the Russian car enthusiast, their sales will grow, and the domestic car market will have a chance to rise from the ruins in which it is now. Therefore, we will “keep our fingers crossed” for the full recovery of China’s economy after two years of coronavirus. Our main hope is to remember what it is: a more or less normal automotive industry.

Source: Avto Vzglyad

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