MOSCOW: After a number of years of spectacular development, Chinese language automotive gross sales in Russia have hit the brakes as Moscow strikes to bolster its home auto business.
Chinese language carmakers had lately made major inroads in Russia, as worldwide manufacturers exited following Moscow’s invasion of Ukraine.
Final 12 months, Russia imported greater than 1,000,000 automobiles from China, handing Chinese language manufacturers a 63 per cent share of the market, up from simply 7 per cent in 2021.
However this squeezed out Russian automakers. Native producers commanded simply 29 per cent of the market share in 2024, in keeping with the China Passenger Automotive Affiliation.
In January, Russian authorities stepped in by elevating “recycling charges” – obligatory levies on future automotive disposal – by as much as 85 per cent.
Business analyst Alexander Klimnov from Avtostat Data mentioned the transfer was aimed toward curbing imports of fully-assembled automobiles, notably from China.
“The recycling payment is, in essence, a tax that’s giving benefit to the native producers; they’re being compensated for it,” he advised CNA.
“Russian automobiles are being subsidised, whereas foreign-made automobiles are, in essence, levied with what one might name a further tax, just like the present tax on luxurious items.”
The transfer has made imported automobiles costlier, forcing Chinese language dealerships to slash costs to woo prospects and clear extra inventory.
The gross sales of Chinese language-made automobiles dropped practically 30 per cent within the first 9 months of 2025.
