As the local situation gradually eases, European, American, Japanese and Korean automakers, which have been away for three years, are returning to the Russian market through parallel imports or building new production bases. At present, Toyota, Volkswagen and other companies have resumed the supply of parts to Russia, while South Korea's Hyundai Motor plans to resume production at its Russian factories this year. An incident that happened almost simultaneously with this - a recent statement made by a senior Russian minister-level official - attracted the attention of Chinese automobile manufacturers. In early February, Russian Minister of Industry and Trade Alikhanov publicly pointed out that China's Shaanxi Automobile, Sinotruk and FAW Jiefang three brands of trucks have "serious defects" and called for strengthening certification review . Subsequently, the Russian Technical Regulation and Metrology Bureau revoked the certification of a certain model of Shaanxi Automobile truck and suspended sales on the grounds of "excessive noise, insufficient braking performance, and non-compliant side protection." Although the Russian side emphasized that this move was "routine supervision", the China Association of Automobile Manufacturers has launched a special investigation, fearing that it may evolve into a systemic technical barrier. Obviously, the Shaanxi Automobile heavy truck incident is a rite of passage for Chinese automakers in their globalization process. The next three years will undoubtedly be a critical window period that will determine the fate of Chinese automakers in Russia. In the short term, the return of European, American, Japanese and Korean automakers will intensify market competition, but in the long term, this will inevitably force Chinese heavy truck companies to accelerate the process of technological independence and localization. If this incident can be used as an opportunity to promote the mutual recognition of Sino-Russian technical standards, improve the resilience of the supply chain, and achieve breakthroughs in the field of new energy, Chinese heavy trucks are expected to maintain their leading position in the Russian market. Since the outbreak of the Russia-Ukraine conflict in 2022, Western automakers have withdrawn from the Russian market on a large scale. Chinese auto brands have quickly seized market share by relying on their cost-effectiveness and rapid response capabilities, ushering in a three-year golden development period for Chinese automakers in the Russian market. In fact, the invincibility of Chinese car companies in Russia is not only due to geopolitics, but also to the incomparable advantages in products and prices. For example, in view of the extremely cold and dusty environment in Russia, our SUV models are popular due to their high passability. In addition, the average price of Chinese cars is 50% lower than that of European brands. It is strange that they are not hot sellers. Sales data also verifies this. As of January 2025 , the sales share of Chinese brands in the Russian new car market has further increased. Nine of the top ten brands in sales are Chinese brands, with Haval, Chery and Geely ranking in the top three. After the withdrawal of European, American, Japanese and Korean brands, Russia's annual automobile sales dropped sharply from 1.67 million in 2021 to 687,000 in 2022. Chinese automakers quickly filled this market gap of over one million vehicles, especially in the heavy-duty truck market. Last year, China exported 1.158 million vehicles to Russia, of which heavy-duty trucks accounted for more than 60%. The three major brands of Shaanxi Automobile, Sinotruk and FAW Jiefang accounted for 65% of the commercial vehicle exports to Russia. Shaanxi Automobile Heavy Duty Truck has achieved localized production in Romania through technology licensing, and its X3000 platform models have long occupied 18% of the Eastern European construction and transportation market. Despite the good relations between China and Russia, Russia has also seen the strong competitiveness of Chinese cars and is trying to limit the rapid expansion of Chinese car companies through a combination of taxation, localization construction and regulatory pressure. From the perspective of national choices, there is nothing wrong with this move, but for Chinese car companies, how to achieve the transition from wild growth to steady and deep cultivation requires more wisdom and competitive products. As for whether there is a strong connection between the return of European, American, Japanese and Korean automakers to the Russian market and the ban on sales of Chinese cars, well, you know. |
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