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In the first half of 2010, China exported only 1,691 vehicles to Russia, and its export volume decreased by 96.5%. In addition, Chinese car maker Lifan sold only 4065 vehicles in the Russian market in January-August 2010, and China Geely sold 1,138 vehicles in the same period.
The main reason for the decline in sales volume is the conflict between China's auto product structure and Russia's products. There are competitions between the cars of our country and the Lada brand cars produced by Russian local car companies, and other trucks, so the Russian government has taken some measures to restrict it, leading to tariff barriers for Chinese cars to enter Russia.
Russia's auto market is slowly recovering China's auto sales have fallen sharply in Russia, not because of the decline in demand in the Russian market. It is understood that Russia, which is one of the BRIC countries, was once the fastest growing automobile market in Europe. After the financial crisis broke out in 2008, Russian car sales in 2009 fell by 49% to 1.47 million. Industry insiders have predicted that in 2010 Russia’s auto sales will be 1.5 million, which is basically the same as in 2009.
According to the latest data, the sales of cars in Russia from January to October 2010 exceeded 1.5 million, of which sales in October increased 62% year-on-year to 182,000, which was the eighth consecutive monthly increase. At present, the international major statistical agencies estimate the total vehicle sales in Russia for the year 2010 ranging from 180 to 1.9 million vehicles, an increase of 25% to 30%.
The relevant policies of the Russian government The recovery of the Russian automobile market in 2010 was attributed to the “new-for-new†subsidy program that the Russian government started in March. In addition, the Russian government stated that it will spend 13.5 billion rubles (about 430 million U.S. dollars) to continue to implement the “new trade†subsidy program in 2011. However, the Russian government has set up many invisible obstacles to the production and sales of foreign brand cars, and strongly supported the Russian auto manufacturers.
Russian Prime Minister Vladimir Putin has stated that due to the economic recovery and rising demand, the Russian government plans to gradually increase the tariffs on foreign auto imports in order to stimulate international automakers to build factories in Russia and increase domestic auto production. In the coming years, Russia will again raise the import tariffs on cars and trucks on the basis of the original 30%.
Chinese car companies change their tactics to pursue a strategic plan in the Russian market The Russian market was once the largest exporter of Chinese cars. Chery, Great Wall, BYD, Geely, Lifan, Dongfeng and many other OEMs exported cars to Russia. However, the continuous increase of tariffs by the Russian government has brought great impact on China’s auto exports. Due to Russia’s high tariff barriers, Chinese auto manufacturers’ exports to Russia are no longer profitable.
The Chinese auto companies have to open up the Russian automobile market first. Insiders pointed out that the Eastern European market represented by Russia is the next springboard for the European market, and it will have a foothold in Russia and will have very important significance in expanding other markets.
In response, Chinese auto companies have decided to implement local assembly production in Russia:
BYD F3 Gasgoo News According to the Russian business daily Kommersant, Chinese automaker BYD recently signed a contract with the Taganrog automobile factory in Russia worth US$3.6 million. The contract, Taganrog plant will begin mass production of BYD's F3 sedan. Stargan...
Gesar Automobile News According to Russian media reports, sources revealed that the Russian automotive assembly company Davis plant will start production of a small urban vehicle in 2011 - Lifan 320 [Review Picture Forum] A-class models. According to the plan, the “birth certificate†of the Lifan 320 model will be completed by the end of 2010. At present, Davis Steam...
Geely Automobile News According to Russian media reports, China’s Geely Automobile will launch three new models to the Russian market in 2011, including an urban crossover, a sedan, and a compact hatchback B-Class. According to reports, these three models will be put into production at the Russian automotive plant, Derveis, and Geely will export to Russia before the local production of the plant is realized....
Geshi Automobile reported that the assembly plant of FAW Haima Automotive in Cherkessk, Russia, has officially started production. The first cars produced by FAW Haima in the Russian factory will arrive in the hands of local dealers around November 15. The factory is owned by Russia's Derways Motors. The Russian plant will initially produce the hippocampus 3 [review image forum] two-door sedan and hatchback...
Li Shufu won VOLVO, and Geely's recent days in the Russian market are not easy. According to statistics of the Russian Automobile Statistics Network, in July of this year, Geely sold only 13 vehicles in the Russian market. The bleak market in Russia has caused the attention of Geely’s top management. According to Russian local media reports, a Geely delegation arrived in Russia and entered the Davis Factory in Chelsea...
On June 24, Beiqi Foton Motor Co., Ltd. (Fukuda Motors) signed a memorandum of cooperation with the Moscow City Government of the Russian Federation at the Moscow City Hall. The Foton Motor Europe Automotive Division and the Russian Foton Motor Company were formally established. According to Foton Motor’s "Global Strategy for the Advancement of 531" from 2011 to 2015, Foton will be at 201...
Beiqi Foton Motor Co., Ltd. announced today that it has signed a memorandum of cooperation with the Moscow municipal government, marking the formal establishment of Foton Motors Russia. Foton Motor stated that the company will use Russia as its European regional manufacturing and operations center and will be responsible for the sales, R&D and investment management of Foton Motors in Europe. Foton Motor plans to be in the Russian Federation in 2012...
The main reason for the decline in sales volume is the conflict between China's auto product structure and Russia's products. There are competitions between the cars of our country and the Lada brand cars produced by Russian local car companies, and other trucks, so the Russian government has taken some measures to restrict it, leading to tariff barriers for Chinese cars to enter Russia.
Russia's auto market is slowly recovering China's auto sales have fallen sharply in Russia, not because of the decline in demand in the Russian market. It is understood that Russia, which is one of the BRIC countries, was once the fastest growing automobile market in Europe. After the financial crisis broke out in 2008, Russian car sales in 2009 fell by 49% to 1.47 million. Industry insiders have predicted that in 2010 Russia’s auto sales will be 1.5 million, which is basically the same as in 2009.
According to the latest data, the sales of cars in Russia from January to October 2010 exceeded 1.5 million, of which sales in October increased 62% year-on-year to 182,000, which was the eighth consecutive monthly increase. At present, the international major statistical agencies estimate the total vehicle sales in Russia for the year 2010 ranging from 180 to 1.9 million vehicles, an increase of 25% to 30%.
The relevant policies of the Russian government The recovery of the Russian automobile market in 2010 was attributed to the “new-for-new†subsidy program that the Russian government started in March. In addition, the Russian government stated that it will spend 13.5 billion rubles (about 430 million U.S. dollars) to continue to implement the “new trade†subsidy program in 2011. However, the Russian government has set up many invisible obstacles to the production and sales of foreign brand cars, and strongly supported the Russian auto manufacturers.
Russian Prime Minister Vladimir Putin has stated that due to the economic recovery and rising demand, the Russian government plans to gradually increase the tariffs on foreign auto imports in order to stimulate international automakers to build factories in Russia and increase domestic auto production. In the coming years, Russia will again raise the import tariffs on cars and trucks on the basis of the original 30%.
Chinese car companies change their tactics to pursue a strategic plan in the Russian market The Russian market was once the largest exporter of Chinese cars. Chery, Great Wall, BYD, Geely, Lifan, Dongfeng and many other OEMs exported cars to Russia. However, the continuous increase of tariffs by the Russian government has brought great impact on China’s auto exports. Due to Russia’s high tariff barriers, Chinese auto manufacturers’ exports to Russia are no longer profitable.
The Chinese auto companies have to open up the Russian automobile market first. Insiders pointed out that the Eastern European market represented by Russia is the next springboard for the European market, and it will have a foothold in Russia and will have very important significance in expanding other markets.
In response, Chinese auto companies have decided to implement local assembly production in Russia:
BYD F3 Gasgoo News According to the Russian business daily Kommersant, Chinese automaker BYD recently signed a contract with the Taganrog automobile factory in Russia worth US$3.6 million. The contract, Taganrog plant will begin mass production of BYD's F3 sedan. Stargan...
Gesar Automobile News According to Russian media reports, sources revealed that the Russian automotive assembly company Davis plant will start production of a small urban vehicle in 2011 - Lifan 320 [Review Picture Forum] A-class models. According to the plan, the “birth certificate†of the Lifan 320 model will be completed by the end of 2010. At present, Davis Steam...
Geely Automobile News According to Russian media reports, China’s Geely Automobile will launch three new models to the Russian market in 2011, including an urban crossover, a sedan, and a compact hatchback B-Class. According to reports, these three models will be put into production at the Russian automotive plant, Derveis, and Geely will export to Russia before the local production of the plant is realized....
Geshi Automobile reported that the assembly plant of FAW Haima Automotive in Cherkessk, Russia, has officially started production. The first cars produced by FAW Haima in the Russian factory will arrive in the hands of local dealers around November 15. The factory is owned by Russia's Derways Motors. The Russian plant will initially produce the hippocampus 3 [review image forum] two-door sedan and hatchback...
Li Shufu won VOLVO, and Geely's recent days in the Russian market are not easy. According to statistics of the Russian Automobile Statistics Network, in July of this year, Geely sold only 13 vehicles in the Russian market. The bleak market in Russia has caused the attention of Geely’s top management. According to Russian local media reports, a Geely delegation arrived in Russia and entered the Davis Factory in Chelsea...
On June 24, Beiqi Foton Motor Co., Ltd. (Fukuda Motors) signed a memorandum of cooperation with the Moscow City Government of the Russian Federation at the Moscow City Hall. The Foton Motor Europe Automotive Division and the Russian Foton Motor Company were formally established. According to Foton Motor’s "Global Strategy for the Advancement of 531" from 2011 to 2015, Foton will be at 201...
Beiqi Foton Motor Co., Ltd. announced today that it has signed a memorandum of cooperation with the Moscow municipal government, marking the formal establishment of Foton Motors Russia. Foton Motor stated that the company will use Russia as its European regional manufacturing and operations center and will be responsible for the sales, R&D and investment management of Foton Motors in Europe. Foton Motor plans to be in the Russian Federation in 2012...
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