MOSCOW: After several years of spectacular growth, Chinese car sales in Russia have hit the brakes as Moscow moves to bolster its domestic auto industry.
Chinese carmakers had in recent years made major inroads in Russia, as international brands exited following Moscow’s invasion of Ukraine.
Last year, Russia imported more than a million vehicles from China, handing Chinese brands a 63 per cent share of the market, up from just 7 per cent in 2021.
But this squeezed out Russian automakers. Local manufacturers commanded just 29 per cent of the market share in 2024, according to the China Passenger Car Association.
In January, Russian authorities stepped in by raising “recycling fees” – mandatory levies on future car disposal – by up to 85 per cent.
Industry analyst Alexander Klimnov from Avtostat Info said the move was aimed at curbing imports of fully-assembled cars, notably from China.
“The recycling fee is, in essence, a tax that is giving advantage to the local producers; they are being compensated for it,” he told CNA.
“Russian cars are being subsidised, whereas foreign-made cars are, in essence, levied with what one could call an additional tax, similar to the existing tax on luxury goods.”
The move has made imported cars more expensive, forcing Chinese dealerships to slash prices to woo customers and clear excess stock.
The sales of Chinese-made cars dropped nearly 30 per cent in the first nine months of 2025.
Source: CNA
