The Rise of Chinese Automotive Industry: A Global Concern?

According to Reuters, sales of new electric vehicles in Russia soared by 350% from May 2023 to April 2024, with over 20,500 units sold. In contrast, Russian manufacturers sold only 4,000 electric vehicles during the same period.

This highlights a growing preference among Russian consumers for electric cars, particularly those from Chinese automakers.

The Russian automotive market is undergoing significant changes as many major car brands from Japan, South Korea, and Europe have withdrawn from the country. Chinese manufacturers have seized this opportunity, quickly capturing market share and becoming the top choice for Russian consumers.

Data from Autostat, a market analytics firm, reveals that Chinese brands accounted for more than half of the car sales in Russia, totaling 1.28 million passenger cars in the past year.

Maxim Sokolov, CEO of Avtovaz, Russia’s largest carmaker, expressed concern about the dominance of Chinese vehicles. “Chinese brands have conquered the Russian market at a breakneck speed, replacing Japanese, Korean, German, American, and French brands,” he lamented.

The rise of Chinese vehicles is not limited to traditional gasoline-powered cars but extends to electric cars as well. Despite the still-developing electric vehicle infrastructure in Russia, sales of electric cars have been steadily growing. The Chinese brand Zeekr is a prime example of this success, having sold over 8,000 units in Russia despite not having an official presence or dealer network in the country.

In response, Avtovaz has called on the Russian government to implement protective measures for domestic electric vehicles in the face of fierce competition from Chinese rivals. The company believes that government support is necessary to help local manufacturers compete on a level playing field and maintain their market share at home.