China is grabbing a bigger share of Russia’s car market, once the third biggest in Europe, after global manufacturers from Volkswagen AG to General Motors Co. pulled out in the wake of President Vladimir Putin’s invasion of Ukraine.
The Chery, Haval and Geely brands were three of the four most popular cars in the first half of 2023 behind the locally made Lada, whose sales of 143,618 were still greater than all three Chinese makes combined, according to data published Thursday by Association of European Businesses. Chinese models accounted for more than a third of overall Russian sales.
Total car sales rose by 10% to 428,308 units in the first six months of the year. Sales have risen for three consecutive months after slumping in response to the war as global brands including Volkswagen, GM, Ford, Nissan, Toyota and Renault that had spent billions to gain market share abandoned Russia amid unprecedented international sanctions.
READ: China Exports More Cars Than Japan on Sales Surge to Russia
Chinese sales, by contrast, have surged as companies expanded dealership networks that accounted for 46% of Russia’s total by the end of last month, according to estimates this week by Otkritie Auto. Russia now has 19 Chinese car brands on the market with eight having more than 100 dealerships each, the auto business unit of Otkritie Bank said.
Chinese vehicles are also penetrating Russia’s business sector. Yandex taxi, Russia’s biggest on-demand transport service, reached agreement with manufacturers including Haval, Chery and Geely on sales to car fleets that partner with its service, Vedomosti newspaper reported last October.
