As many Western brands have gradually withdrawn from the Russian market under the influence of external factors, its automobile market is still in a large blank stage.
Chinese automakers appear to be among the biggest winners, with Chinese brands accounting for more than 50 percent of new car sales in Russia, according to Reuters. That demand has also prompted Chinese companies to take over factories once owned by Western automakers.
According to people familiar with the matter, Chery Automobile has taken over the Russian plants abandoned by Mercedes, Nissan and Volkswagen, and is gradually starting the new Ruihu and Star Road series models. The plants are for final assembly, Reuters said, and Chery’s role in the production process appears to be rather limited since the cars arrive in Russia “almost finished.”
Overseas media said the move could be a way to circumvent tariffs; Russia has reportedly imposed higher tariffs on imported cars. Chery controls nearly 20% of the passenger car market, so having final assembly in Russia also allows it to avoid some of the steep tariffs on new cars. It is worth mentioning that Chery Group’s sales reached 244,534 units in September, up 28.6% year on year. Among them, 58,941 new energy units were sold, up 183.4% year on year; From January to September, the cumulative sales volume was 331,788 units, up 1.9 times year-on-year, realizing the declaration of “new energy will not be welcome this year” made by Chairman Yin Tongyue at Chery Global Technology Day 2023. Overseas media said the move could be a way to circumvent tariffs; Russia has reportedly imposed higher tariffs on imported cars. Chery controls nearly 20% of the passenger car market, so having final assembly in Russia also allows it to avoid some of the steep tariffs on new cars. It is worth mentioning that Chery Group’s sales reached 244,534 units in September, up 28.6% year on year. Among them, 58,941 new energy units were sold, up 183.4% year on year; From January to September, the cumulative sales volume was 331,788 units, up 1.9 times year-on-year, realizing the declaration of “new energy will not be welcome this year” made by Chairman Yin Tongyue at Chery Global Technology Day 2023.
