Russia is trying to curb a flood of Chinese vehicle imports in a blow to Chinese manufacturers and traders that have increasingly come to rely on shipments to its ally.
Chinese vehicle exports to Russia last year hit seven times the level of 2022 as sanctions over the war in Ukraine cut the country off from western brands, according to the China Passenger Car Association.
Carmakers in China also embraced the Russian market after anti-dumping measures impeded sales in markets including the US, EU, Canada, Turkey and Brazil.
[…]
Gregor Sebastian, an automotive analyst at Rhodium Group, said Russia shared other countries’ concerns about “an influx of cheap Chinese vehicles undermining domestic manufacturing”.
“They want them to step up local production,” he said. “For a while they felt like they had no other choice, but now they are recognising they have bargaining power — they’re a quite important market for Chinese carmakers.”
A Russian inquiry also recently found three major Chinese truckmakers violated safety standards and banned one model from being sold in the country. Officials have signalled they could roll out new compliance and testing checks for imported vehicles.
Much of the boom has flowed through border towns in north-eastern China such as Suifenhe. Exports to Russia from Suifenhe increased fivefold from 2020 to nearly Rmb14bn ($1.9bn) last year, making it China’s most active trading hub with Russia, excluding oil and gas.
[…]
The boom has also provided an outlet for second-hand and petrol cars, which Chinese manufacturers are struggling to sell at home as electric vehicles become more popular. Petrol vehicles accounted for 97 per cent of those sent to Russia last year.
Local officials in Suifenhe said second-hand car exports rose 612 per cent in 2024. The surge came from new Chinese policies to facilitate used car exports and a “cash for clunkers” scheme aimed at stimulating domestic consumption incentivised many drivers to sell old petrol cars.
Car exporters in Suifenhe said Russian recycling fees were not yet being universally collected. They also pointed to loopholes in the Russian policies.
Chen of Suifenhe China Speed Car Exports, who preferred to be identified by only his surname, said that he was now selling directly to Russian drivers to avoid the recycling fees.
“Our volumes are similar but there’s much more work involved,” he said. “Before with the dealers, we’d sign a contract for 50 or 100 cars. Now it’s one contract for one car.”
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Russia has a domestic car industry to protect?
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Russia is trying to curb a flood of Chinese vehicle imports in a blow to Chinese manufacturers and traders that have increasingly come to rely on shipments to its ally.
Chinese vehicle exports to Russia last year hit seven times the level of 2022 as sanctions over the war in Ukraine cut the country off from western brands, according to the China Passenger Car Association.
Carmakers in China also embraced the Russian market after anti-dumping measures impeded sales in markets including the US, EU, Canada, Turkey and Brazil.
[…]
Gregor Sebastian, an automotive analyst at Rhodium Group, said Russia shared other countries’ concerns about “an influx of cheap Chinese vehicles undermining domestic manufacturing”.
“They want them to step up local production,” he said. “For a while they felt like they had no other choice, but now they are recognising they have bargaining power — they’re a quite important market for Chinese carmakers.”
A Russian inquiry also recently found three major Chinese truckmakers violated safety standards and banned one model from being sold in the country. Officials have signalled they could roll out new compliance and testing checks for imported vehicles.
Much of the boom has flowed through border towns in north-eastern China such as Suifenhe. Exports to Russia from Suifenhe increased fivefold from 2020 to nearly Rmb14bn ($1.9bn) last year, making it China’s most active trading hub with Russia, excluding oil and gas.
[…]
The boom has also provided an outlet for second-hand and petrol cars, which Chinese manufacturers are struggling to sell at home as electric vehicles become more popular. Petrol vehicles accounted for 97 per cent of those sent to Russia last year.
Local officials in Suifenhe said second-hand car exports rose 612 per cent in 2024. The surge came from new Chinese policies to facilitate used car exports and a “cash for clunkers” scheme aimed at stimulating domestic consumption incentivised many drivers to sell old petrol cars.
Car exporters in Suifenhe said Russian recycling fees were not yet being universally collected. They also pointed to loopholes in the Russian policies.
Chen of Suifenhe China Speed Car Exports, who preferred to be identified by only his surname, said that he was now selling directly to Russian drivers to avoid the recycling fees.
“Our volumes are similar but there’s much more work involved,” he said. “Before with the dealers, we’d sign a contract for 50 or 100 cars. Now it’s one contract for one car.”
!ping Containers
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>russia dropping the tariff nuke when their economy is struggling to survive sanctions
China is now 76% of the global electric car market.
Only one stands undefeated…
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