Chinese car brands leave Russian market as no one buys them

Dozens of Chinese car brands will exit the Russian market in 2025 due to persistently low demand, Aleksei Podshchekoldin, head of the Russian Automobile Dealers Association (ROAD) said.

Photo: openverse by JustAnotherCarDesigner, https://creativecommons.org/licenses/by-sa/4.0/

Changan CS55

It is primarily lesser-known brands that will leave, as they failed to establish service center networks in Russia over the past three years. As a result, they cannot efficiently repair their vehicles, making them unattractive to buyers. These cars are imported directly from China, so once shipments stop, sales will cease altogether.

Currently, over 100 car brands are available in Russia's new and used car markets. Of these, 60% are officially imported from China, while 5-6% are from departed Western brands, which enter the market through gray imports at higher prices.

Spare Parts Shortage Drives More Chinese Car Brands Out of Russia

Discussing the withdrawal of some Chinese car brands, Podshchekoldin pointed out that sourcing original spare partsfor lesser-known brands is extremely difficult.

He recalled the case of Lifan, a Chinese brand that exited the Russian market. Over its time in Russia, Lifan sold over 160,000 cars, with 120,000 officially registered. However, obtaining spare parts for these vehicles became nearly impossible, which discouraged Russian consumers from purchasing Chinese-made cars.

As a result, average sales per dealership in Russia have dropped to below 20 units, severely affecting the profitability of smaller manufacturers, Podshchekoldin concluded.

Chinese Car Brands Flooded the Russian Market but Faced Major Issues

After most foreign car brands left Russia, Chinese automakers rushed to fill the gap. Suppliers from China flooded the market with their vehicles, introducing new models almost every week. These brands attracted Russian buyerswith a vast range of options, various configurations, and even generous discounts.

In a short time, Chinese cars were everywhere – from taxis and car-sharing services to people's garages. However, problems were quick to emerge. Many newcomer brands began experiencing serious issues, including:

• Engine failures
• CVT (continuously variable transmission) breakdowns
• Bodies rusting after just a few bouts of bad weather
• Some vehicles literally falling apart

What initially seemed like a promising replacement for Western brands quickly turned into a wave of reliability concerns for Russian car owners.

Details

There are hundreds of automobile manufacturers operating in China, the country with the largest automotive industry in the world. It includes state-owned manufacturers, privately owned manufacturers, foreign manufacturers, and joint ventures between local and foreign manufacturers.