Chinese carmakers diverge in Russia under sanctions, protectionism
> Chinese automakers have been major beneficiaries of Russia's war on Ukraine, as they swiftly filled the void left by an exodus of global rivals after the February 2022 invasion. But their paths are diverging as they run into a dilemma: the threat of sanctions for profiting in the country, coupled with rising protectionism on the part of Russian President Vladimir Putin's government.
> "Moscow's message is clear: We welcome Chinese cars, but please build them in Russia," said Gregor Sebastian, senior analyst at Rhodium Group, who specializes in the auto sector. "Even China's close geopolitical ally is averse to becoming a dumping ground for Chinese excess capacity."
> The wartime rise of Chinese cars in Russia has been nothing less than meteoric.
> None were in the top five of the Russian auto sales ranking at the close of 2021. But by the end of last year, Chery Automobile, Great Wall Motor, Geely Auto and Changan Automobile took the second to fifth slots, trailing only Lada, the storied Russian brand produced by Avtovaz.
Lada used to be 67.69% owned by Groupe Renault, until the French conglomerate sold its stake for 1 ruble ($0.01 in current value) after the war started. Not only #Renault, but former market leader #Hyundai-Kia Group of South Korea, Germany's #Volkswagen, Japan's #Toyota Motor and others withdrew or diluted their Russian operations.
> In the era of the "no limits" partnership pledged by Putin and Chinese President Xi Jinping, the collective market share of Chinese cars in Russia has soared from less than 10% to over 60%.
https://archive.is/2025.10.02-055111/https://asia.nikkei.com/business/automobiles/chinese-carmakers-diverge-in-russia-under-sanctions-protectionism #China #Russia #cars #EV #electricvehicles #Ukraine #UkraineWar