AutoBeta(AutoBeta.net)03/18 Report--

Affected by the previous sanctions imposed by Western countries on Russia and the escalating situation in Russia and Ukraine, including Renault, Toyota, Nissan and other manufacturers have withdrawn from the Russian market, resulting in the suspension of production in many local factories in a vacant state, but according to media reports, a number of automakers have transferred their Russian factories for sale.

Toyota's plant in St. Petersburg, Russia, is being considered for transfer to the Russian Central Institute of Automotive and engine Science (Russia's Central Automobile and Engine Research and Development Institute, hereinafter referred to as "NAMI"), Russian Industry and Trade Minister Denis Manturov said.

In response to the news, a Toyota spokesman said on March 17 that the company was considering how to deal with the plant, but had not yet made a final decision. "while we are indeed considering various options, no decision has been made yet," the spokesman said.

In addition, Hyundai is in talks with a Kazakh car-related company about the sale of its Russian manufacturing plant. Hyundai said it was still evaluating "various options" at its Russian plant and had not yet made a decision, according to a related regulatory filing. However, according to relevant sources, the negotiations have entered the final stage, and the agreement will be signed in June at the earliest. Mercedes-Benz's industrial and financial services arm in Russia has also been approved for sale to Russian car dealer Avtodom, after Avtodom said it expected to close the deal by the end of February.

According to "Automotive Industry concern" statistics, since the conflict between Russia and Ukraine, including French, Japanese and Korean brand car companies have announced to withdraw from the Russian car market, of which Renault, which accounts for nearly 10% of the Russian car market, first announced its withdrawal from the Russian market. Toyota, Nissan, Ford and Mazda followed, while Volkswagen, Hyundai and Mercedes-Benz also planned to sell assets in Russia. So far, Renault and Nissan have sold their Russian plants, both acquired by NAMI. In may last year, Renault announced the sale of its 100 per cent stake in Renault Russia to the Moscow municipal government and its nearly 67.69 per cent stake in AvtoVAZ to NAMI. In February, Nissan also transferred its Russian operations to NAMI for a nominal price of 1 euro. Nissan's Russian operations include car plants and research facilities in St. Petersburg and sales and marketing centers in Moscow. Both companies said they had the right to buy back the business within the next six years. Once Toyota also confirms that it will sell its Russian plant to NAMI, it means that NAMI production capacity will be further increased in the future. However, so far, Toyota has not yet made an initial and final disposal plan for its plant in Russia.

Data show that Russian car sales in 2022 fell 41.24 per cent year-on-year to 687370 units, with Chinese car market share soaring from 9 per cent in January to 37 per cent in December 2022. The most popular Chinese brands in the Russian car market this year were Chery, Harvard and Geely, with the three major brands accounting for 82 per cent of annual Chinese car sales in Russia.

Since Renault, Toyota, Nissan and Mazda announced their withdrawal from the Russian market in May 2022, Chinese automakers have moved aggressively to fill the gap in this market. Chinese cars' market share in Russia has soared rapidly, at the same time, more and more Chinese car companies are accelerating their presence in the Russian market.

Geely Russian dealers launched booking services for the new Geely Monjaro crossover, which will go on sale in Russia in April. The new car is available in three models: Geely Monjaro Luxury, Geely Monjaro Flagship and Geely Monjaro Exclusive, starting at 4.5 million rubles (about 407200 yuan).

Earlier, Rolf, Russia's largest car dealer, and Beijing Automotive Factory (BAW) reached a preliminary agreement to sell the brand's light vehicles in St. Petersburg. In response, Arbi Abu Bakarov, vice chairman of the Foreign Relations Committee of the Russian government of St. Petersburg, said: "an agreement is being drafted and we are interested in achieving supply within a few months." In the future, if there is a good demand for this Chinese brand car, we also plan to establish local production of BAIC in St. Petersburg. "

According to the latest data from the Russian European Enterprise Association, Russian car sales in January and February were 32000 and 42000 respectively, with a cumulative sales of 74000 in two months, of which Chinese brands still had a strong sales performance in the Russian market. cumulative sales in the first two months were 40900. In terms of brand segmentation, Lada sales in the first two months rose 1 per cent year-on-year to 41000 vehicles, with a market share of 55.4 per cent; Great Wall Harvard grew 46 per cent year-on-year, with a market share of 13.3 per cent; and Geely grew 86 per cent, with a market share of 10.2 per cent.

Russian Deputy Prime Minister and Minister of Industry and Trade Manturov said that the Ministry of Industry and Trade expects the total sales of various types of cars in Russia to increase by at least 30% in 2023. In addition, the Russian Ministry of Industry and Trade and relevant departments predict that the share of Chinese cars in the Russian market will continue to increase, and sales in Russia are expected to reach 300000, accounting for 35% of the Russian auto market, accounting for 35% of the Russian auto market. At that time, the total annual sales of the Russian auto market will reach 800000.

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