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Russia is trying to curb a flood of Chinese vehicle imports in a blow to Chinese manufacturers and traders that have increasingly come to rely on shipments to its ally.
Chinese vehicle exports to Russia last year hit seven times the level of 2022 as sanctions over the war in Ukraine cut the country off from western brands, according to the China Passenger Car Association.
Carmakers in China also embraced the Russian market after anti-dumping measures impeded sales in markets including the US, EU, Canada, Turkey and Brazil.
“International brands [in Russia] have been completely replaced by Chinese cars,” said Cui Dongshu, CPCA secretary-general, adding: “If the Russian-Ukrainian crisis ends, the pressure on Chinese automakers will increase dramatically.”
Russia bought up more than 1mn Chinese vehicles last year, soaking up about 30 per cent of its neighbour’s petrol car exports. The surge handed Chinese brands 63 per cent of the Russian market, and sent local brands’ market share down to 29 per cent, according to the CPCA.
Russian authorities have begun to push back. In January, Moscow raised “recycling fees”, which function akin to tariffs, to Rbs667,000 ($7,500) for most passenger cars, more than double the level of last September. The charges are set to rise by 10-20 per cent annually until 2030.
Gregor Sebastian, an automotive analyst at Rhodium Group, said Russia shared other countries’ concerns about “an influx of cheap Chinese vehicles undermining domestic manufacturing”.
“They want them to step up local production,” he said. “For a while they felt like they had no other choice, but now they are recognising they have bargaining power — they’re a quite important market for Chinese carmakers.”
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A Russian inquiry also recently found three major Chinese truckmakers violated safety standards and banned one model from being sold in the country. Officials have signalled they could roll out new compliance and testing checks for imported vehicles.
Much of the boom has flowed through border towns in north-eastern China such as Suifenhe. Exports to Russia from Suifenhe increased fivefold from 2020 to nearly Rmb14bn ($1.9bn) last year, making it China’s most active trading hub with Russia, excluding oil and gas.
“There is a lot of concern, a lot of grumbling about the tariffs, and what it will mean for us,” said a Chinese merchant in the town of 100,000, where cars ready to ship lined icy streets. “Europe and America sanctioned them, so they turned to us.”
State-backed Chery was the top Chinese carmaker in Russia, where it sold 430,000 vehicles in the first three quarters of 2024, equal to 28 per cent of its total sales by volume, according to CPCA data.
The company, which is seeking an initial public offering in Hong Kong, said that it “generated considerable revenue from sales to Russia” in its listing documents but disclosed plans to downscale Russia sales to “mitigate sanctions risks”.
Chery declined to comment on how such a pivot would affect its sales figures.
The boom has also provided an outlet for second-hand and petrol cars, which Chinese manufacturers are struggling to sell at home as electric vehicles become more popular. Petrol vehicles accounted for 97 per cent of those sent to Russia last year.
Local officials in Suifenhe said second-hand car exports rose 612 per cent in 2024. The surge came from new Chinese policies to facilitate used car exports and a “cash for clunkers” scheme aimed at stimulating domestic consumption incentivised many drivers to sell old petrol cars.
Car exporters in Suifenhe said Russian recycling fees were not yet being universally collected. They also pointed to loopholes in the Russian policies.
Chen of Suifenhe China Speed Car Exports, who preferred to be identified by only his surname, said that he was now selling directly to Russian drivers to avoid the recycling fees.
“Our volumes are similar but there’s much more work involved,” he said. “Before with the dealers, we’d sign a contract for 50 or 100 cars. Now it’s one contract for one car.”
