Exports of Chinese land vehicles to Russia (passenger cars, trucks, tractors and their spare parts) in March 2024 decreased by almost 20% compared to March 2023 – to $1.4 billion.
According to Ankushin, despite the fact that exports of all Chinese goods to Russia decreased by 14.2% in March 2024, it is premature to draw conclusions about the impact of this factor on the domestic economy in general and the car market in particular.
“Firstly, because in February of this year, exports from China to the Russian Federation, on the contrary, increased by almost 10%. Secondly, negative dynamics in March are observed not only in relation to the Russian Federation. Exports from China to global markets overall decreased by 7.6%, which can be explained, among other things, by the protracted New Year holidays. The third reason why Russia and China may find opportunities to continue mutually beneficial trade is the high importance of the Russian car market for China. Russia is the main importer of products from the Chinese automobile industry, and therefore most of the automakers represented in the Russian Federation planned to increase the level of localization of their assembly and production facilities,” the expert explained.
He believes that if supplies of Chinese cars to Russia continue to decline, then, most likely, prices will return to December levels. An increase in price, according to Ankushin, may occur if Chinese manufacturers begin to export their cars to Russia through parallel imports, since their transportation through third countries is expensive.
Domestic manufacturers will certainly benefit from a reduction in the volume of Chinese cars imported into Russia, assures the Alfa-Leasing speaker.
“However, we must understand that a decrease in volumes may also affect spare parts. And then Russian motorists may no longer have a question about purchasing a new car, but about the available service options,” added Ankushin.
Tags: Alfa Leasing named reasons reduction supplies Chinese cars Russia
