Korean Media: Chinese Cars Dominate Russian Market with 60% Share!
On August 2, South Korean media outlet Global Economy published an article stating that, less than half a year after the Hyundai Motor Group decided not to repurchase its Russian factory, Chinese brands—filling the market gap left behind—have further expanded their market share amid soaring fuel prices.
According to Reuters, sales of Chinese electric vehicles have surged in Moscow. After Hyundai and Kia vacated the market—once leading Russia’s passenger car segment—Chinese brands now hold around 60% of the market.
EN Cars, a Moscow-based dealer specializing in Chinese automotive brands, currently sells two to three electric vehicles per day. This sales pace has increased nearly tenfold compared to just a few weeks ago.
Yevgeny Zabelin, founder of EN Cars, told Reuters: “As the oil situation grows more complicated, demand has increased several times over.” He added that consumer interest in electric vehicles—from entry-level to premium models—is growing across the board.
Data from the Russian Automotive Statistics Bureau shows that between January and May this year, 24,600 plug-in hybrid electric vehicles were sold in Russia, a 125% increase compared to the same period last year; pure electric vehicle sales rose by 19%, reaching 4,460 units.
In the final week of June, 1,754 new plug-in hybrids were registered—up nearly 30% from the previous week and about 50% higher than the annual average weekly volume.
Sergei Udalov, Executive Director at Russian automotive market research firm Avtostat, believes that if the oil crisis persists, electric vehicle sales will surge dramatically, with China being the biggest beneficiary. According to Avtostat data, Chinese brands such as Geely, Dongfeng, GAC, and Chery lead in both pure electric and hybrid vehicle sales in Russia.
For South Korean enterprises, the Russian auto market is no stranger. In 2021, Hyundai and Kia held top positions in Russia’s passenger car market with a combined market share of around 27%. However, due to disrupted parts supply following the Russia-Ukraine conflict, they shut down their plant in St. Petersburg in 2022.
This February, the Hyundai Motor Group decided not to exercise its right to repurchase the factory, confirming a book loss of approximately 280 billion KRW. Industry insiders point out that the expansion of Chinese brands’ market share, filling the void left by Hyundai, was a major reason behind the company’s decision not to repurchase.
In fact, it is estimated that Chinese brands now account for approximately 60% of Russia’s passenger car market. The current boom in electric vehicles is seen as an extension of this trend, with companies like Geely and Dongfeng stepping in to fill the gap left by Western brands.
Original source: toutiao.com/article/1872412356888576/
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