- Chery has reportedly begun assembling vehicles at Russian plants previously owned by Mercedes, Nissan, and Volkswagen.
- Chinese firms are said to be responsible for over 50% of new cars sales in the country, following the exit of Western brands.
- Russia is reportedly increasing fees on imported vehicles, which could cause more Chinese firms to setup shop in the country.
Russia invaded Ukraine nearly three years ago, resulting in a number of Western brands pulling out of the country due to a mixture of sanctions and political pressure. This left a significant void in the market for everything from cars to fast food, but those spots have been filled in with domestic and international options.
One of the biggest winners appears to be Chinese automakers as Reuters is reporting that brands from the People’s Republic account for over 50% of new car sales in Russia. This booming demand has reportedly resulted in firms taking over plants that used to be owned by Western automakers.
More: Russia Makes Knock-Off Citroens At Stellantis Plant With Help From Chinese Partner
Citing five people familiar with the matter, the publication is reporting Chery is now making vehicles at Russian plants that were abandoned by Mercedes, Nissan, and Volkswagen. However, it appears there role in the production process is fairly limited as Reuters suggested the plants are used for final assembly as the cars are “nearly finished” when they arrive.
The move could be a way to sidestep tariffs as the publication reports that Russia is targeting imported vehicles with higher fees. Chery is said to control nearly 20% of the passenger car market, so doing final assembly in the country could be a way of securing their foothold.
The plants are said to build Tiggo and Exeed models, with the Tiggo 7 being rebranded as the Xcite X-Cross 7. While it remains unclear how much assembly is actually being done in Russia, Italian authorities recently fined DR Automobiles for “importing ‘finished’ cars” from China. Officials there released pictures of rebadged Chery vehicles and noted they appeared “finished and complete in every way.”
