The share of sales of Chinese auto brands in Russia in 2023 exceeded 50%. Residents of the largest megacities are increasingly switching to Chinese electric cars and hybrids, according to a joint study by OKS Labs (by Okkam) and ROMIR, the results of which were reviewed by Izvestia on April 3.
“Over the past two years, the Russian automotive market has undergone a structural transformation: supply chains, players, and consumer sentiment have changed. The new reality of the market is the search for a balance between fundamentally changed demand and supply,” said the authors of the study.
According to OKS Labs forecasts, the Russian automotive market will continue to grow and could reach 1.8 million units by 2028 in the base scenario. The key drivers of growth will be subsidies for automakers and auto loans, localization of Chinese manufacturers, the expected reduction in the key rate and the development of electric transport.
“The current situation has turned into a window of opportunity for Chinese players who have made successful bets on two key segments: relatively cheap cars and premium electric cars and hybrids,” market experts explained.
If in 2021 there was only one Chinese car brand in the top 10 in terms of sales, then by 2023 Chinese brands already occupied six places out of ten in the ranking. The share of Chinese brands in sales over the same period increased more than sevenfold – from 7 to 51%. Apart from them, only Russian brands were able to increase their share (from 23 to 33%). In January 2024, Chinese electric vehicles and hybrids of the Zeekr, Lixiang and Voyah brands were sold in quantities comparable to the top 4 global brands, excluding Russian and Chinese ones.
“Manufacturers from China are actively expanding their presence in the Russian market by localizing production and adapting the model range, developing official dealer networks, and increasing marketing expenses. Over two years, the number of dealership centers managed by Chinese companies increased from 713 to 2207, making them leaders in this indicator. Serious ambitions are also evidenced by the fact that last year three Chinese auto brands were among the top five in terms of advertising spending in their category,” the study says.
According to experts, the most recognizable brands are Chery, Haval and Geely. Currently, Chinese brands are perceived uniformly in the mass consciousness, despite radical differences in their model ranges. The study also showed that consumers do not differentiate even premium brands such as Zeekr and Tank, categorizing them as status mass brands such as Exceed, Geely and Haval.
Earlier, on March 29, experts from the Avtotek service told Izvestia that cars of the brands BMW, Toyota and Volkswagen turned out to be the most popular diesel cars in Russia under the age of five years. It was noted that the segment of such cars is notable for the fact that the greatest interest of buyers is focused on business class cars, full-size SUVs and mid-size crossovers.
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