AutoBeta(AutoBeta.net)12/10 Report--

According to the latest data from the European Enterprise Association (AEB), due to the impact of the general environment, Russian car sales in November 2022 were only 46403, down 61.6% from the same period last year. Cumulative sales from January to November in 2022 were 548877, down 60.9% from a year earlier, and full-year sales are expected to be around 600000.

In terms of brands, the brand with the highest sales of new cars in Russia in November was still Lada, a veteran Russian manufacturer, with sales of 21726, down 18% from a year earlier, followed by 4552 Harvard. Surprisingly, Geely did well in November, with sales of 3506 vehicles, up from 10th last month to fourth, while Changan also ranked in the top 10. Overall, only four major brands achieved year-on-year growth in November, three of which were from China, namely Geely, FAW and Dongfeng, with sales up 24 per cent, 23 per cent and 123 per cent respectively. Among the specific models, Chinese brands occupy five categories on the TOP10 list, with Harvard first Love (Jolion) ranking the highest with sales of 2021 vehicles, Geely Coolray ranking fourth, and Harvard F7, Geely Coolray and Tugella all in the top 10.

Russian car sales for the whole year in 2021 increased by 4.3 per cent to 1.667 million units compared with the same period last year. After entering 2022, Russian monthly car sales plummeted one after another. According to the statistics of Automotive Industry concern, Russian cars have declined by more than double digits every month since March, and car sales in some months have even reached the lowest level since 1991.

The sharp decline in sales is mainly due to the conflict between Russia and Ukraine and Western sanctions, softening market demand has led to more car companies pulling out of the Russian market. The conflict between Russia and Ukraine began in February this year, and Russian car sales have fallen by more than 50% so far this year. However, the Russian car market is expected to pick up in 2023 with the increase in production by car companies such as AvtoVAZ and the opening of Moscovici and Harvard plants, the Ministry of Industry and Trade said.

Before the conflict between Russia and Ukraine broke out, the Russian car market had been fought for market share by a number of western automakers, such as France's Renault, Mercedes and Ford, and local Russian automakers, which began to change after 2022. At present, car companies including Renault, Toyota, Nissan and Mazda have all announced their withdrawal from Russia, at the same time. Chinese car brands have made a big foray into the Russian market to quickly fill this gap in the local market, as a result, the share of Chinese car brands in Russia has risen rapidly.

According to the data, the market share of Chinese brands remained at around 9.5% in the first quarter of this year (January to March), and began to increase sharply in the second quarter, including 12.6% in April, 16.9% in May, 21% in June, 24.3% in July and 25.9% in August. Passenger car sales of Chinese brands in Russia, including Harvard, Chery and Geely, surged to 16138 in November, with market share soaring from 9.6 per cent in January to 31.3 per cent in November, according to Autostat, a Russian analyst. The industry forecasts that this share is likely to continue to expand in 2023.

In addition, the penetration of parts and components by Chinese car companies into Russian local car companies is also accelerating. According to the China Automobile Association, Russia was the sixth largest export destination for Chinese auto products (including complete vehicles and spare parts) in the first October of 2022, accounting for 3.9%. It was also reported that at the end of November, Russia had resumed production of the Soviet-era traditional Moskvich car brand at a factory near Moscow abandoned by the French carmaker Renault. According to the news, the Muscovite model will adopt a new Chinese modern design, including the design, engineering and platform from Jianghuai Automobile, and some of the vehicles displayed also have Jianghuai labels on some parts, judging from the exposed pictures of the model appearance. The new car Moskvich 3 is highly similar to the Sihao X4 compact crossover made by JAC.

"Western brands produce very little in Russia and export very little to Russia, so the Russian car market is carved up by the Russian and Chinese auto industries," said Bespalov, an analyst for the Russian auto industry. The Russian car market is forming a pattern of "Russian car brands dominate the market of less than 1.5 million rubles (about 167000 yuan) at lower prices, and Chinese car brands dominate the market of more than 2.5 million rubles (about 278000 yuan) in Russia". According to Bespalov, Chinese carmakers are likely to account for about 35 per cent of Russian car sales in 2023, when the Russian car market will total 800000 vehicles for the year.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat