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China-Russia relations
OpinionChina Opinion
Nikola Mikovic
Nikola Mikovic

Opinion | Amid tariff wars, Chinese carmakers are dominating Russian market

The likes of Geely and Chery have filled the gap left by Western rivals. Even with higher duties now levied by Moscow, Chinese vehicles remain the most popular

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Illustration: Craig Stephens
Nikola Mikovic

Amid the reshaping of the global order, trade and tariff wars seem to have become the norm. While such measures are likely to affect exports of Chinese vehicles to the United States and European Union, Beijing can still rely on Russia – a relatively new and growing market that has become an important destination for Chinese car sales.

The EU and US have made no secret of their plans to create barriers to the import of Chinese cars. Last October, the 27-nation bloc increased tariffs on Chinese electric vehicles (EVs) to up to 45.3 per cent. And last month, US President Donald Trump announced a 25 per cent tax on imported cars and car parts.
Trump’s tariffs are expected to hit both European and Chinese carmakers but could have a bigger impact on the European car industry given that Beijing sees Russia, rather than the US, as a key market for its cars. Three years after brands from the EU, Japan, South Korea and the US left Russia following its invasion of Ukraine, Chinese manufacturers have become dominant in the Russian market.
As a result, Russia has become the biggest importer of Chinese cars. Chinese companies such as Chery Automobile and Geely sold more than a million cars in Russia last year, while dealers have imported so many Chinese vehicles that they are being forced to offer significant discounts, ranging from 150,000 to 1 million roubles (US$1,777-US$11,845).

Russian President Vladimir Putin claims the popularity of Chinese cars is not related to the departure of European carmakers but is because China has started making cars that are better and cheaper than European ones. In reality, Russian drivers do not have much choice. They can either buy Russian-made cars or Chinese vehicles, as European cars, which come through parallel import schemes, are very expensive.

It is therefore no surprise that a recent survey found half of Russians “generally willing” to buy a Chinese car, with only one in 10 categorically against it. According to Russian statistics, in the first 11 months of last year, 788,655 Chinese cars were sold in Russia, making up nearly 60 per cent of the market. Compared to the same period in 2023, sales of Chinese cars had nearly doubled.

Workers walk past new Chinese cars unloaded from a ship at a commercial port in Vladivostok, Russia, on August 25, 2023. Photo: Reuters
Workers walk past new Chinese cars unloaded from a ship at a commercial port in Vladivostok, Russia, on August 25, 2023. Photo: Reuters
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