Chinese carmakers have already seized more than half of
Russia’s car market since Western competitors pulled out, taking their
technology and know-how with them, after Moscow sent troops into Ukraine in
February 2022.
Governments in Europe and the United States are growing
increasingly wary of Chinese dominance in the EV sector but Russia, rather than
imposing tariffs, is embracing Chinese brands across all automobile sectors to
prop up its car industry.
From May 2023 to April 2024, more than 20,500 new EVs were
sold in Russia, a jump of about 350% on the previous year, with Chinese brands
accounting for over half of sales, according to data from the Russian
analytical agency Autostat.
Russian carmakers sold fewer than 4,000 new EVs in that
time, while 1.28 million passenger cars were sold overall.
The EV market’s development has been hamstrung by a lack of
charging infrastructure across Russia’s vast territory, and Moscow’s
traditional reliance on its plentiful oil and gas resources. Still, more EVs
sold in the last 12 months than in the entire decade before.
PREMIUM BRAND LEADS EV SALES IN RUSSIA
Zeekr, a Chinese premium brand, is leading the charge
despite having no official representation in Russia, with more than 8,000 cars
sold since June last year, according to Irina Frank, head of the Frank-Auto
dealership in Moscow.
Russians are becoming more interested in EVs as more
charging stations are built, consumers understand the savings on fuel, and
dealers improve maintenance, Frank said.
“In China, more than 30% of people use electric cars. For us
it is still less than 2%,” Frank said.
“My opinion is that we will reach more than 25% by 2035.”
Zeekr’s official entry into the Russian market would boost
growth, said Vadim Merzlikin, marketing director for a dealership that sells
Zeekr models, but macroeconomic factors are also key.
“It all depends on purchasing power, competition and the
economic situation,” Merzlikin said.
Most buyers are wealthier than the average Russian, with
premium cars the only widely available category of EV. As many as 40% of EV
owners have charging facilities at home, Merzlikin said.
The Zeekr X, a compact SUV, is on sale from around 4 million
roubles ($46,136), similar to prices in Europe.
Russia’s Evolute i-Space, a comparable model made by private
firm Motorinvest, costs 3 million roubles. The Moskvich 3e, part of Russia’s
attempt to revive and modernise a Soviet-era classic, is just over 3 million
roubles.
The Lada e-Largus from Russia’s leading carmaker Avtovaz is
still in development and likely to be a more affordable option, though prices
have not yet been announced.
CHINESE PREJUDICE FADING
Zeekr is owned by Geely, which also owns the Volvo, Polestar
and Lotus brands, and builds its Swedish-designed cars in China. Zeekr listed
on Nasdaq in May with a valuation of around $6.8 billion.
In a statement, it said it had not entered the Russian
market and had no approved sales network there.
“(The) very few vehicles being seen there is attributable to
individual behaviours,” it said.
![]() |
An electric car of Zeekr, a premium brand owned by Chinese automaker Geely, is on display at the Frank-Auto dealership in Moscow, Russia June 14, 2024. REUTERS/Yulia Morozova © Thomson Reuters |
“Zeekr has not deployed any infrastructure such as charging stations, or conducted any other related business in Russia, hence we are unable to provide basic maintenance service, warranty or remote support in Russia for vehicles sold through unapproved channels.”
Even with a standoffish approach to Russia, Zeekr is
beginning to dominate. Only around 2,000 Evolute EVs and 1,000 Moskvich EVs
were sold in the last 12 months.
And even the Moskvich, though listed as Russian in the
statistics, is actually being assembled in Moscow with kits from a Chinese
partner.
Maxim Sokolov, head of Avtovaz, in March urged the state to
protect the domestic market from all Chinese carmakers, whether electric or
fossil fuel-powered.
“Chinese brands have conquered our Russian market very
quickly,” he said, “replacing the departing Japanese, Koreans, Germans,
Americans and French.”
![]() |
Electric cars of Zeekr, a premium brand owned by Chinese automaker Geely, are on display at the Frank-Auto dealership in Moscow, Russia June 14, 2024. REUTERS/Yulia Morozova © Thomson Reuters |
China’s share of the Russian market has leapt from less than 10% to more than 50% in the two years since the start of the full-blown Ukraine conflict, and prejudice towards Chinese cars is gradually fading.
“There are problems, for example, with service,” said
Ruslan, the owner of a Chery, China’s most exported brand, who declined to give
his surname.
“There are not many dealers, there are not many unofficial
dealers either, and not all car services know how to work with Chinese cars
yet. But I think in three to five years, everything will be fine.”
Citing an Autostat and Auto Mail survey, Merzlikin said
53.1% of Russians were now prepared in principle to buy a Chinese car, up from
6.4% in 2017:
“The more Chinese cars are bought, the more ambassadors there are of the Celestial Empire.” - Reuters
0 comments:
Post a Comment