China starts assembling cars in Russia at plants confiscated from Western competitors
Pravda Ukraine
The Chinese company Chery has started assembling cars in Russia at three plants that were vacated by Western competitors, including Volkswagen and Mercedes, to sell on the Russian market.
Source: Reuters with reference to sources familiar with the matter
Details: Chinese automakers have captured more than half of the Russian car market in terms of sales after most Western companies left the country following Moscow’s invasion of Ukraine in February 2022.
They are now expanding their influence to include a share of Russia’s domestic production, underscoring Beijing’s growing role in reshaping Russia’s industrial landscape and economy since the invasion of Ukraine.
The sources said that Chery, which accounts for nearly a fifth of passenger car sales in Russia, imports nearly finished cars and completes their assembly at three Russian plants in addition to importing finished cars.
Four of these sources, including dealers who maintain relations with the factories, declined to be identified as they were not authorised to speak to the media.
The sources said that China’s largest car exporter is likely betting on strong demand in Russia, as the Russian domestic market is facing limited production and underutilised capacity.
In a written statement, Chery said it supplies passenger cars to the Russian market but has no plans to build or buy plants in Russia. The company did not respond to Reuters’ questions about car assembly at these plants.
Chery has not previously announced the start of production at the three plants and the release of new models assembled there.
Russia is raising duties on imported cars, which may encourage foreign automakers to localise production.
In July, Chery Vice President Shawn Xu said that the company’s global plans include entering more than 60 new markets over the next three years.
Following the European Union’s decision to impose import duties on electric vehicles made in China, Chery’s electric vehicles will also be subject to additional taxes.
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