Products Description
After European and American automakers left Russia due to the 2022 Russia-Ukraine conflict, Chinese brands quickly stepped in to take their place. They hit over 50% of the Russian market share in 2023 and 60% in 2024, exporting more than 1.15 million vehicles to Russia in 2024 and becoming its top auto supplier.
Chery achieved sales of 325,000 units in Russia in 2024, followed by Great Wall with 229,000 units and Geely with 168,000 units. However, starting from April 2024, vehicles transiting through Central Asia to Russia have been subject to retroactive payment of customs duties and value-added tax (VAT), causing a 30% surge in overall costs. Furthermore, recycling tax rates were raised by 70% to 85% in October of the same year, and have been set to increase by 10% to 20% annually since January 2025.
Chinese automakers pulled out all the stops to survive the crunch. First, they pursued tax breaks for local production – Great Wall's Tula factory and Chery's Moscow assembly lines led this drive. Second, they upgraded low-temperature battery control and anti-corrosion processes, slashing failure rates by 30% and making the vehicles fully suited to Russia's frigid weather.
BYD opened company-owned stores in Russia, and Geely tested battery swapping services. Low-power single-motor vehicles like BYD's Seagull emerged as the go-to for meeting regulations. Russia aims for 35% local production by 2030 to edge out Chinese brands, prompting automakers to expand to the Middle East and South America. Once a golden market, Russia has turned tough-policy compliance and product adaptation are now make-or-break factors.