I wasn't surprised when I read the news. Chinese cars have evolved and become competitive on a European level, with prices that have eclipsed European companies that used to offer luxury cars at exorbitant prices, with standard features, while options will cost you an additional fortune, making luxury accessible to certain people only. However, Chinese companies have decided to offer their customers the best features at prices much lower than those of European companies.
Chinese cars have taken a significant position in the Russian market, and 6 out of 10 cars sold in Russia today are of Chinese origin.
What's Behind the Spread of Chinese Cars in Russia?
With the gap left by European and American companies withdrawing from Russia after the aggression against Ukraine, Chinese cars are taking over, according to the Polish newspaper Rzeczpospolita.
The Russian car market has witnessed a major transformation in the past two years following the Russian Ukrainian war. Many Korean, American, European, and Japanese companies left Russia, but Chinese companies quickly compensated the space they left. Consequently, 61% of the cars sold in Russia are Chinese. While in 2022, Chinese cars represented only 18% of cars sold in the Russian market.
In 2024, sources indicate that more than 900,000 Chinese cars were sold.
Before the aggression against Ukraine, car sales in Russia were high, exceeding one million cars per year. However, during the war, this number declined significantly. Chinese cars, on the other hand, quickly revived the Russian market, and today, we see car sales reach one and a half million in 2024. At the top of the list of Chinese companies in Russia is Great Wall Motors, which sold 192,000 cars, representing a 75% increase in its sales in Russia, compared to its previous sales of only 110,000 units. It is followed by Geely and Chery, with sales exceeding 150,000 units. Sources indicate that Changan sold approximately 100,000 units, while Exeed sales reached approximately 41,000 units.
Other reasons for Chinese companies' dominance in Russia
Government support and import policies: The Russian government has encouraged Chinese brands through favorable trade policies, facilitating their entry and expansion into the market.
Competitive pricing and availability: Chinese brands offer affordable alternatives to Western, and even Russian, cars. With few options available, Russian consumers are increasingly choosing Chinese vehicles thanks to the variety of options and features they offer.
Growing domestic production: Many Chinese automakers (such as Chery, Geely, and Haval) assemble their cars in Russia, reducing costs and making their vehicles more attractive.
Improved quality and technical features: Unlike before, modern Chinese cars offer competitive technology, safety features, and designs, making them more attractive.
Financing and leasing options: Chinese automakers offer flexible financing and leasing options, making it easier for Russian buyers to purchase their cars.
As Chinese cars dominate the Russian market, the prices of locally manufactured cars, such as Lada, have also risen. Indeed, we constantly witness Chinese companies rushing to seize any opportunity that helps them expand into markets and prove they can replace European and American companies that have dominated most markets for years. You'll often see Chinese car dealers telling you that their cars, even if they're Chinese luxury vehicles priced at the same price as, say, Mercedes or BMW, offer far more features than the standard versions of these European brands. With Chinese companies rapidly advancing and dominating the electric vehicle market, what will happen to foreign companies that are still struggling to convert their vehicles to electric?
