Chinese car firms accelerate development in Russia

In the Obuhav Motor City in the south of Moscow, the 4S shop of Chinese car brand Geely is eye-catching. The interior decoration of the store is brilliant and the auto models are shining under the lights.

In addition to Geely Automobile, Great Wall Motor’s factory is also expected to be put into production in Russia next year. Lifan, another Chinese auto company, is also actively launching new models suitable for local demand. Chinese auto companies are increasingly popular in the Russian market.

Chinese cars have a good localization rate and be loved by local consumers. A reporter met the Anatoly family who just bought a new car at Geely Automobile 4S. “How is the car experience?” asked the reporter. In response, Anatoly answered, “Have you seen the expression on the faces of our family of three?” Indeed, the happiness on their faces has been explained all undoubtedly.

In 2017, Geely Automobile established a joint venture factory in Belarus. Bo Yue and Di Hao models that are now mainly sold in the Russian market are all produced in factories in Belarus. After reaching the design capacity in the future, they will expand the market to the entire CIS and even the entire Eastern Europe.

Great Wall Motor entered the Russian market as early as 2004, and the local ownership has exceeded 100,000 units. At present, Great Wall Motor’s investment in the Tula, a state of Russia, is about 500 million US dollars, and the establishment of the factory with an annual production capacity of 150,000 units has entered the final stage. It is expected that after the completion of establishment in 2019, the localization rate will be further improved.

In the view of automakers in various countries, the Russian market is huge and the consumption potential needs there is to be released. Despite of the attractive market prospects, the competition is fierce. In order to gain a market share in the Russia, all Chinese automakers have been eagerly striving. For example, Chery Automobile has accurately positioned the target customers-the middle class between 35 and 55 years old, for its two kinds of cars in Russia by doing market research.

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