Chinese car supplies to Russia have halved: the reason is the disposal fee

Reduction of car supplies from China to Russia

According to Главком: Chinese car supplies to Russia from January to November 2023 decreased by half, which was a consequence of the increase in the disposal fee in the country. The total supply volume of cars from China amounted to $8.1 billion, although China's total car exports increased by 19% compared to the previous year, reaching 6.34 million units.

In November 2023, car supplies to Russia decreased by 48% compared to the same period last year. The share of the Russian market in China's total exports dropped to 2.7%, which is 0.5 percentage points lower than the previous year. Supplies of other categories of 'machines and equipment' also decreased by 10.9%. Starting from November 2024, the disposal fee for most passenger cars increased by 1.7-2.8 times, which became a serious factor affecting the market.

Changes in the car market

In 2023, the share of Chinese car brands in sales in Russia exceeded 60%, but in November it decreased to 44.7%. This indicates a decrease in interest in Chinese cars in the Russian market. Some manufacturers took measures in response to market changes: in particular, Geely stopped selling the imported sedan Emgard, and the Skywell brand decided to leave the Russian market in 2023.

Projections for 2026 indicate a possible decrease in sales of new passenger cars in Russia to 80-90 thousand units per month, which further emphasizes negative trends in the market. Overall, China's exports to Russia from January to November 2023 decreased by 11.8% and amounted to $91.7 billion. This data indicates serious changes in the automotive industry caused by new economic conditions.

The reduction in car supplies from China to Russia is the result of not only the increase in the disposal fee but also general economic difficulties affecting consumer demand. In conditions of a shrinking share of Chinese cars in the Russian market, manufacturers are forced to seek new strategies to support sales, which could lead to changes in competitive conditions in the industry. Continuous monitoring of the situation will help understand how these changes will affect the car market in Russia and relations between the countries.