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· 2018 China's auto will strengthen its position in the Russian market
According to the Russian satellite news network reported on January 3, experts in the automotive industry interviewed by the Russian satellite news agency believe that China's auto will strengthen its position in the Russian market in 2018, and the stability of the Russian economic situation will help achieve this goal, Chinese companies May participate in the Russian government's plan to support car demand and launch new models in the Russian market.
According to the European Business Association, during the January-October 2017 period, the Russian auto market grew by 12% to 1.4 million vehicles. But Chinese manufacturers’ sales in Russia have fallen by 14%. In the first 11 months of 2017, sales of Lifan Motors in Russia decreased by 5% year-on-year to 14,800 units. Chery Automobile has increased by 19% to 5,200 units, and Geely Automobile has dropped by 52% to only 2,000 units.
The economic situation has improved
Oleg Mosheyev, president of the Russian Automobile Dealers Association, said: "Overall, as the Russian economic situation began to stabilize, the situation of Chinese brands in Russia has improved. The ruble is even stronger, not like last year. Fluctuations, correspondingly, exporting cars and auto parts to Russia has become more favorable." He believes that the situation of individual Chinese brands is very stable.
Mosheyev said: "Chery's growth rate is higher than the growth rate of the whole market, mainly because of the introduction of new models. As for Geely, they are still in the top three, but they have the risk of losing this position."
Hope to receive state subsidies
In November 2017, Lifan, Chery, Brilliance, Huatai and Great Wall Motor, the DERWAYS in the Karachay-Cherkes Republic of Russia, were assembled and became full members of the Russian industrial assembly project. Obtained the right to import duty-free auto parts.
Mosheyev believes that participating in industrial assembly will enable Chinese manufacturers to enter the Russian national support program, which will further strengthen the position of Chinese brands in Russia.
Analysts at Russia's Avtostat analyst firm believe that "this agreement reduces tariffs and can make (Chinese brand) cars more competitive in the Russian market."
Maintain production localization plans
The representative of Harvard said that the construction of the factory building in the Uzlovaya industrial area of ​​Tula is proceeding as planned. Haval will begin assembling cars at the new factory in 2019. Although Lifan has frozen the construction of the Lipetsk state factory, it has also retained the market localization plan.
Mosayev said: "We have seen that more than 80% of the market is currently occupied by brands produced in Russia, and this trend will continue. Therefore, Chinese brands that are serious about the Russian market have already announced themselves. The localization plan has already been organized in Russia." He believes that other Chinese manufacturers will soon consider plans for local production in Russia.
Launch new models
Some Chinese brands have announced plans to launch new models in 2018. For example, Futian Group plans to launch SAUVANA and GRATOUR smart family cars in Russia in 2018. Lifan will launch seven MPVs in Russia in the first half of 2018 and the X60 off-road vehicles in the second quarter. Chery also plans to increase its models for the Russian market next year, producing two new off-road vehicles: the Tiggo 4 and the Tiggo 7.
China Geely also announced plans to sell about 30,000 passenger cars in the Russian market in 2018. These cars will be delivered by Geely's businesses in Belarus. Currently, the Russian-made Geely Atlas has been sold in Russia, and plans to add another off-road model and the new sedan Emgrand.
Mosayev believes that these plans show that Chinese manufacturers have a long-term strategy to take root in the Russian market in the next 5-10 years.