South Korean media: Chinese auto industry takes over the Russian market, rising from 8% to 60%!
On April 23, South Korean media Seoul Economic Daily published an article stating that statistics show that Chinese enterprises now account for 60% of Russia's annual car market of 1.8 million vehicles. Chinese enterprises have filled the gap left by major automakers withdrawing from the local market due to the conflict between Russia and Ukraine.
Recently, the Korea Automotive Mobility Industry Association (KAMA) released a report titled "Current Status and Impact of the Russian Automotive Industry," indicating that since the outbreak of the Russia-Ukraine conflict, the Russian automotive industry has been reorganized around Chinese enterprises. Following the withdrawal of global automakers such as Hyundai Motor from the Russian market, this gap was filled by Chinese enterprises.
The volume of China's automobile exports to Russia has increased 7.6 times in two years, rising from 154,000 units in 2022 to 1.17 million last year. Moreover, the market share of Chinese brands in the Russian passenger vehicle market has expanded from around 8% in 2021 to 60.4% in 2024. The association stated, "Due to Western economic sanctions against Russia, major global vehicle manufacturers withdrew from the market, while Chinese enterprises expanded their supply of complete vehicles and components."
Last year, the Russian automobile market size reached 1.834 million units, an increase of 39.2% year-on-year. Local production of Russian automobiles also grew by 34.7% year-on-year, reaching 983,000 units. Thanks to the expansion of incentives by the Russian government and the recovery of domestic demand, local enterprises are showing growth trends. Due to the expansion of production by Chinese companies such as Great Wall Motors and the increase in SKD assembly by companies like Chery and Geely, Chinese enterprises achieved remarkable progress.
With increasing expectations for the end of the conflict, automakers such as Hyundai and Kia are considering re-entering the Russian market. The Korea Automotive Mobility Industry Association suggested that with Russia strengthening its regulations, it is necessary to formulate strategies to adapt to the new environment. The Russian market has always been a major export market and production base for South Korean automotive industries, so there is room for future growth.
Source: https://www.toutiao.com/article/1830181580649472/
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