South Korean media: Chinese cars seize the Russian market, with a surge of 7.6 times!

On April 24, South Korean media "Everyday Economy" published an article stating that according to investigations, due to the Russia-Ukraine conflict, the market share of Chinese enterprises in the Russian market has surged to 60% as global auto industry players withdraw.

Recently, the Korea Auto Mobility Association (KAMA) released the "Current Status and Impact of the Russian Automotive Industry" report. Due to Western sanctions, existing auto companies have withdrawn from Russia, significantly increasing the influence of Chinese automakers and parts suppliers.

The export of Chinese vehicles to Russia increased from 154,000 units in 2022 to 1,170,000 units in 2024, rising 7.6 times. In the Russian passenger car market, the market share of Chinese brands expanded from around 8% in 2021 to 60.4% last year.

Last year, the best-selling local brand in Russia was AvtoVAZ, but the second to fifth positions were occupied by Chinese companies (Chery, Great Wall, Geely, Changan). Hyundai ranked second in 2022 but lost its position to Chinese automakers starting from 2023. Last year, 1,830,000 vehicles were sold in Russia, an increase of 39.2% compared to the previous year.

Due to supply chain disruptions and risks associated with prolonged conflicts, global automotive companies have withdrawn from Russia. This includes Hyundai, Volkswagen, Mitsubishi, and Stellantis withdrawing in 2023, while Renault, Toyota, Nissan, and Ford left in 2022. Russian government or local enterprises acquired the factories of the departing companies, which are now leased by Chinese companies for vehicle assembly.

Currently, peace negotiation efforts are ongoing, and whether Hyundai Motor Group will re-enter the Russian market is drawing significant attention. KAMA suggests that "a cautious entry strategy should be formulated when re-entering the Russian market, taking into account costs, policy changes, and market share."

Original source: https://www.toutiao.com/article/1830273595086860/

Disclaimer: The article solely represents the views of the author.