- Chinese cars are selling at record levels in Russia.
- Competition from European, Korean, and Japanese carmakers has vanished since Western sanctions were imposed on Russia.
- Chinese automakers face increasing tariffs in other regions.
Chinese cars are selling at record levels in Russia, according to data from Russian analytics agency Autostat, reported by The Financial Times.
The country has turned to Chinese autos from brands such as Chery, Geely, and Great Wall Motor after sanctions forced Western brands to stop doing business with Moscow.
European, Korean, and Japanese carmakers had dominated the Russian market with a 69% share, per Autostat. However, since Western sanctions were imposed against Russia following its invasion of Ukraine in February 2022, Autostat's data showed a steep decline in sales.
The three regions now hold just 8.5% of the market, while Chinese carmakers such as have jumped from 9% to 57% over the same period.
Ilya Frolov, a car blogger based in Moscow, told the FT that Russian drivers had been left with little choice: "If you're buying a car, your choice is either a [Russian-made] Lada or an extremely expensive European car brought in as a grey import, or a very well-equipped and relatively cheap Chinese one."
In the first nine months of 2024, Russia imported 849,951 vehicles from China, the FT reported, citing China Passenger Car Association data. China sold less than half that number to its second-largest market, Mexico.
The CPCA didn't immediately respond to a request for comment form Business Insider.
The sales boom in Russia comes as Chinese automakers face rising obstacles in other regions.
In October, the EU voted to impose sweeping tariffs on Chinese EVs. BYD will face a levy of 17%, with other automakers facing tariffs as high as 35% on top of an existing 10% tax.
The US introduced trade restrictions against Chinese EVs earlier this year.
China's cheaper high-tech premium vehicles, particularly its EVs, have been expanding rapidly in developing markets like Brazil, Mexico, and Southeast Asia, disrupting legacy automakers in countries like Japan and Germany.