Russian Auto Market Braces for Crisis as Chinese Suppliers Consider Exit
The Russian automotive market braces for significant changes due to the potential halt of Chinese exports. Dealers may face price increases and a narrowed vehicle range this autumn, highlighting the market's dependence on Chinese suppliers. The Russian market relies heavily on Chinese exports, with China accounting for 92% of finished vehicle imports and over 60% of sales in the country. The potential halt of Chinese finished vehicle exports could leave the Russian market without its last major foreign supplier. The impact of recently increased US sanctions is expected to become visible in the next two or three months. The Russian automotive market faces a potential crisis as Chinese suppliers consider curtailing exports due to US secondary sanctions risks. This could lead to a collapse in the market, with dealers facing price hikes and a narrowed vehicle range as early as this autumn. Chinese companies, including CATL and BYD, have started withdrawing from contracts with leading Russian car manufacturers, including Avtovaz, due to fears of US sanctions. This follows a trend seen in July 2024, when Sergey Gromak highlighted the issue. Avtovaz's flagship Lada model still uses around 1,500 imported parts, mainly from China. The potential halt of Chinese finished vehicle exports could leave the Russian market without its last major foreign supplier. The impact of recently increased US sanctions is expected to become visible in the next two or three months.
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