Instead of building factories in the Russian Federation, the Celestial Empire intends to use the Russian market to get rid of the oversupply of products from the Chinese automobile industry.
China is not going to build factories in Russia. Instead of localizing its own production on the territory of the Russian Federation, the Chinese side intends to continue exporting cars produced by factories in China to the Russian market.
This statement was made by AvtoVAZ President Maxim Sokolov, whose words are quoted “Kommersant”.
The Russian market, after Western sanctions imposed for the Russian war against Ukraine, has lost its main Western suppliers; now it is actively occupied by Chinese brands, carrying out an aggressive price expansion.
It is not profitable for Chinese manufacturers to invest in the construction of enterprises in Russia; they need to increase exports in order to get rid of surpluses of their own products. The active transition of the Chinese to electric vehicles, as well as the policy of Chinese President Xi Jinping, aimed at reducing dependence on Western supplies, has led to an overproduction of cars with internal combustion engines in China.
According to information from the Russian Autostat, every second car sold in the Russian Federation in 2023 was made in China, and in December the share of cars from China reached 61%.
Domestic production of cars in the Russian Federation at the end of last year amounted to 537 thousand units. Despite the fact that production increased by 19% compared to 2022, compared to 2021, when there were no sanctions for the full-scale Russian invasion of Ukraine, car production volumes collapsed by 60%.
Let’s remember at the end of last year reportedthat half of the 22 large enterprises in the Russian Federation, which produced cars from the mass to the premium segment, could not survive the sanctions and did not return to work even after a change of owners.
In addition, in Russia they complained that Western sanctions against AvtoVAZ have joined even states friendly to the Kremlin, as a result of which the company began to experience significant financial and technological problems.
Author: Artem Malinovsky
2024-04-03 17:32:03
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