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Thibault Spirlet
Tue, Mar 11, 2025, 4:15 AM 2 min read
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China sold 1 cardinal vehicles to Russia past year, astir 7 times much than successful 2022.
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Russia fears its ain carmakers are being undermined.
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Moscow has imposed higher import duties connected Chinese-made cars.
China is selling plentifulness of cars successful Russia — and Moscow isn't wholly blessed astir it.
Chinese automakers sold much than 1 cardinal vehicles to Russia past year, a sevenfold summation from the erstwhile year, according to figures from the China Passenger Car Association (CPCA) reported by The Financial Times. Russia is China's biggest export market, with a stock of astir 30%.
The emergence prompted Moscow to rise import taxes connected astir cars to astir $7,500 successful caller weeks, up from astir $5,790 successful October, with further yearly increases planned.
A study from the Rhodium Group published successful December said that Russia's determination to enforce higher duties showed "how adjacent China's adjacent geopolitical state is averse to becoming a dumping crushed for Chinese excess capacity."
Chinese brands owned by manufacturers including Chery, Geely, and Great Wall Motor person adjacent to 2 thirds of the Russian car market, according to the CPCA. Most person interior combustion engines, reflecting debased request for electrical vehicles successful Russia.
The emergence of Chinese manufacturers, boosted substantially by the withdrawal of Western companies pursuing Russia's penetration of Ukraine successful 2022, has sparked interest astir the viability of Russian automakers.
Avtovaz Maxim Sokolov, CEO of Russian state-owned carmaker AvtoVAZ, said past twelvemonth that the influx of Chinese cars posed "a existent menace to the sustainable beingness of the home automotive and constituent industries."
China exported 6.41 cardinal vehicles past year, up 23% year-on-year, with Russia, Mexico and the United Arab Emirates making up the apical 3 destinations, per the CPCA.
China's much affordable high-tech premium cars — particularly its EVs — are displacing German and Japanese automakers successful markets specified arsenic Brazil, Mexico, and Southeast Asia.
The EU voted successful October to enforce sweeping tariffs connected Chinese EVs, portion the US introduced commercialized restrictions successful May 2024.
In response, Chinese EV manufacturers specified arsenic BYD, Geely, and SAIC are expanding overseas done strategical investments and section accumulation facilities to assistance debar tariffs and pat into increasing demand.
Read the archetypal nonfiction connected Business Insider