Moscow – Chinese auto companies in Russia are facing serious challenges that may vow at the end of their dominance on the Russian market, in the event that the retrieval direction continues to its sales, and hundreds of Chinese car showrooms in Russia have been closed after years of achieving record sales.
Sales crisis
From January to May of this year, 213 Chinese cars selling, bypassing the number registered in 2024 completely. The rapid closure included showrooms of the four largest Chinese companies in the Russian market: Haval, Sherry, Jelly, and Chanjan, amid expectations to continue this trend in the coming months.
According to Chinese customs data, Russia lost its position as the largest importer of Chinese cars in April 2025, and fell to sixth in the ranking of automotive importers from China.
At the level of numbers, Chinese passenger cars exports to Russia during the first four months of the year decreased by 47.2% on an annual basis, to $ 1.9 billion, and decreased by 16.2% in April compared to March.
This decline came after a period of exceptional growth in Chinese car exports, which benefited from the withdrawal of Western companies from the Russian market against the background of the sanctions imposed on Moscow. Chinese companies filled this void at competitive prices, which attracted a wide segment of Russian consumers.
Chinese cars are cheaper than their foreign counterparts, and they are able to compete with Russian cars in terms of price and quality, and even outperform them in terms of comfort. Chinese companies offer a variety of models, from economic sedans to luxury SUVs.
But this rapid expansion has quality problems. Changan models have been criticized due to defects in the design of the seat supports, as it was found that these defects may lead to pressure fractures in the spine of drivers and passengers in the event of accidents. This prompted the National Automobile Union in Russia to open a security investigation and withdraw these models from the markets.
Two Chinese brands withdrew from the Russian market: Sky Will and Levan. Observers expect that the number of signs withdrawn from the market by the end of the year will reach more than ten marks, in addition to the decline in Chinese companies in general in the Russian market.
Economic competition and difficulties
The commercial director of the “Afto Logo” company for the sale of Chinese cars and its spare parts, Nikolai Dimitrev, explained that the reasons for the closure are multiple between fierce competition, the decline in purchasing power, technical and structural problems in some models.
In his speech to Al -Jazeera Net, he said that Chinese companies expanded their presence in Russia quickly by opening a large number of showrooms, but the market was not prepared to accommodate this number, which led to a major imbalance between supply and demand.
The high interest rate approved by the central bank, the weakness of the ruble, and the increase in car prices and spare parts also contributed to reducing the purchasing power of consumers, which negatively affected the sales of local agents.
One of the most prominent technical problems in some Chinese cars is that its resistance to corrosion is low, as research conducted in 26 Russian provinces revealed that some models begin with corrosion only two years after use. On the other hand, European and American cars provide higher corrosion resistance, as the age of the metal structure is about 12 years old, and with resistant paint it may extend to 22 years, which makes them more attractive, despite its high cost.
Summer cloud
On the other hand, Anatoli Bagin, technical director of the “AFTSTATAT” agency for car market analysis, believes that the current decline is not an end to the dominance of Chinese cars in Russia, but rather a temporary crisis that can be overcome.
According to his opinion, Chinese companies will work to address these problems by improving safety standards, addressing corrosion problems, and providing financing facilities to attract consumer.
Despite the rumors of the possibility of German brands such as “BMW” and “Mercedes” to the Russian market, Bagin is considered this possibility that in the near future due to the ongoing European sanctions.
He added that the Russian consumer will continue the preference in 2025 between Russian cars and their Chinese counterparts, but the latter may become less available due to the high prices.
He explained that some Chinese car agents in Russia have reduced the prices of new cars, and they did the “Taytin” programs to exchange old cars, and reduced interest rates on loans to 0.01%, while providing installments that extend for five years, in addition to granting free insurance polyps when purchasing.