Chinese car companies say "no" to sales decline in Russia
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Reduced new faces
At the upcoming Moscow International Motor Show in August, it is rumoured that no new faces from China will appear as they did last year, because Russian media stated that: "The priority of booths will be given to European manufacturers!"
However, China’s Zhongxing Automobile Company, Jiangling Motors, Dongfeng Motor Company, Chang’an Automobile Company, FAW Group, Jianghuai Automobile Company, Lifan Motor Company, Geely Automobile Company, Great Wall Motor Company, BYD Auto Company, Brilliance Automotive Company, and Chery Automobile Company The new model will still appear before Russian consumers.
For example, Brilliance FRV hatchback C-class sedan, Brilliance M3 luxury coupé, Great Wall i7 hatchback B-class sedan, Great Wall CoolBear Cool Bear sedans, Great Wall Elf sedan, BYD F1 sedan, BYD F8 Roadster and BYD F3DM Hybrid cars, etc. will be on the debut, giving Russian consumers more choices!
Falling sales
Although some Russian experts once believed that China’s autos will occupy 30% of Russia’s auto market in 2012, it is regrettable that sales of Chinese autos have fallen sharply in Russia in recent years.
Chery Automobile Co., Ltd. sold only 8,730 vehicles in Russia in the first five months of this year, a decrease of 40% from 14,440 vehicles in the same period of last year.
The sales of FAW light vehicles also fell from 1,055 units in the first five months of last year to 928 units in the same period this year.
Hafei Motor's sales in Russia declined by 28% in the negative. In the first five months of this year, the sales volume was only 418, while in the same period last year it sold 580 units.
Fortunately, China’s SUVs have the same strong demand in Russia as before, making Great Wall Motor’s sales volume in the first five months of this year grow to 4,512 units, which is more than 1.2 times higher than the 2,050 units sold in the same period last year.
However, on the whole, the market share of passenger cars in China has fallen from 3% last year to 2%. While other foreign brands of passenger cars are the most popular songs, the average increase of more than 50%.
In response, some Russian experts believe that Chinese cars have performed unfavorably in the Russian automobile market this year, mainly due to “political reasonsâ€.
AUTOTOUR of Kaliningrad Region, Russia, began to stop the assembly of Chery cars in April this year, which has caused Chery’s sales in Russia to drop to a certain extent.
Some Russian analysts pointed out that the Chery assembly project has become a victim of compromise between the "Aftator" company and the Russian government, so that the company can continue to enjoy zero tariff preferences for auto parts imports.
However, some Russian dealers representing Chinese autos expressed different opinions. They feel that some Chinese brands currently have slow sales or even decline in the Russian auto market. This may be due to the limited demand of Chinese consumers for Chinese autos. This shows that China's auto production quality and after-sales service levels need to be further strengthened.
New round of assault
Faced with declining sales and reduced market share, Chinese auto makers have not been passive. They renewed their spirit and launched a new round of assault on the Russian auto market.
According to Russian media reports, at present, Chery Automobile Company has not abandoned its efforts to localize and assemble in Russia. It will adopt a more flexible model to continue the assembly and production, and has already reached a preliminary agreement with another Russian manufacturer. It is expected that the advantages of “local assembly, closeness to the market, and rapid response†will once again be exerted, and it is hoped that the former sales will be restored to some extent.
View related topics: Commercial Vehicle Export Analysis