The New Deal of the Russian Automobile Industry is continuously updated

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"China's own brand "Russia's full retreat"", July 16, China Automobile Industry Association Secretary-General Du Fangci said. Correspondingly, the latest survey results from PricewaterhouseCoopers show that Russia has surpassed Germany as Europe’s largest auto sales market this year.

A self-owned brand car manufacturer is organizing a seminar on the concept of crossMPV. Du Fangci has a strong focus on the subject: domestic brands are opportunistic and prestigious. Eventually, Chery, Great Wall, Dongfeng and other companies have completely withdrawn from the Russian market, and they must re-enter the market. The Russian market will be quite difficult. This is not a matter of Russian policy. There are no signs of retreat for all European, American, Japanese, and Ford cars.

At the same time, pressure from Russian automotive-related policies is increasing. On July 16, the Russian chairman and deputy director of the Russian Agency for Technical Regulation and Measurement, Krutkov, who is attending the sixth meeting of the Standing Working Group of China-Russia Standards, Metrology, Certification and Inspection and Supervision in Shanghai, said that Russia “is The technical requirements of foreign cars are getting higher and higher." The policy of the Russian automobile industry was hung on a manual block, and the process of continuously introducing new regulations basically coincided with a small upsurge of China's own brand in Russia and the current low tide.

On March 29, 2005, the Russian government approved the government resolution No. 166 “On the Modification of Customs Tariffs for Automotive Parts Used in Industrial Assembly in the Russian Federation”, and puts priority on foreign automobile manufacturers to invest in “industrial assembly” investment production. Chery, Great Wall, and Geely have established a joint venture company in Russia to achieve automotive assembly. On November 10, 2007, the deadline for the signing of new agreements and memoranda on the production of automobiles and spare parts under the industrial assembly system was signed. Companies that signed the memorandum before this deadline will be able to continue signing the investment agreement. All the Chinese automobile manufacturers in Russia's "industrial assembly" project are in an emergency.

Finally, on December 25, 2007, Androsovov, Deputy Minister of Russian Ministry of Economic Development and Trade made a clear statement: “There are not many Chinese automakers among the many automakers that signed the “industrial assembly” memorandum with the Ministry of Economic Development and Trade of Russia. "China's autos have been completely aborted in the four major "industrial assembly" projects in Russia. On July 1 this year, the Russian government formally implemented the revised imported vehicle certification system and cancelled the simplification of the automobile quality inspections of non-GNE members. China and India have become the most affected countries. Previously, China's auto products only need to pass 11 tests to export to Russia. From now on, 55 inspections will be passed, so that the Chinese Automobile Corps will suddenly lose the power of counterattack and have to look back.

With the further implementation of the Russian automobile industry policy, Chinese government officials and Chinese self-owned brand auto companies have to face up to the fact that the Chinese automobile has been defeated in Russia.

An industry insider who has been engaged in the development of the Russian market for self-owned brands for many years said: “In fact, the status quo of Chinese self-owned brand cars in Russia has long been clear, but Chinese officials and companies are not willing to face this fact.”

While the Russian fleet of the Chinese team collapsed, the Russian market is rapidly expanding. The speed of blowouts and expansion is just like China's running into the automobile society. In the first half of 2008, the sales of new cars in Russia in the first half of the year reached 1.5 million, of which the sales of foreign brands reached 1.06 million, an increase of 47% year-on-year. Foreign brands have already controlled more than 70% of the Russian new car market. The cumulative sales volume of Chinese-branded cars in Russia was 21,900 units, which was 7% lower than the 23,600 units sold in the same period last year.

According to the latest PricewaterhouseCoopers (PwC) survey, this year Russia will overtake Germany as Europe’s largest car sales market, three years ahead of the original forecast, due to the shift in economic development between the two countries. In the first half of this year, the sales of automobiles in the Russian and German markets were 1.646 million and 1.63 million, respectively. The sales volume in the Russian market increased by 41% year-on-year. Given the promising economic outlook, the annual sales volume is expected to be between 3.6 million and 3.8 million vehicles.

China’s Chery Automobile Co., Ltd. was affected by the localization and assembly of AUTOTOUR in Kaliningrad, Russia. In the first half of 2008, the sales volume in Russia dropped by 47%. The cumulative sales volume dropped below 10,000 vehicles, and the ranking dropped to 21st.
View related topics: Commercial Vehicle Export Analysis


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