Chinese carmaker Chery started assembling cars in Russia for domestic sales at three plants vacated by Western rivals including Volkswagen and Mercedes, according to Reuters.
China’s automakers seized more than half of the Russian car market by sales volume since most Western counterparts left the country after the war in Ukraine began in 2022. Beijing now aims to capture most of Russia’s domestic production.
In addition to importing complete cars into Russia, Chery, which accounts for nearly a fifth of passenger car sales in Russia, imports almost ready-made vehicles and completes assembly at three Russian plants.
China’s largest car exporter is likely to bank on strong demand in the country as Russia’s domestic market struggles with limited production and underutilised capacity, sources said. Russia also recently raised duties on imported cars, potentially encouraging foreign carmakers to localise production.
Chery’s global expansion plans call for the company to enter over 60 new markets over the next three years, Vice President Shawn Xu said in July. Chery’s plans to produce some models in Russia received approval to meet safety standards, according to Russian documents.
Mikhail Pogonov, brand manager for new Chery vehicles at the ASC Group dealership near Moscow, said Chery models, particularly the Tiggo crossover, were already being assembled in Kaluga.
Chery, along with brands it owns such as Exeed and Omoda, almost quadrupled new car sales in Russia to just over 200,000 vehicles in 2023, according to Russian analytical agency Autostat.
