The growth in sales of Chinese cars on the Russian market has slowed down; at the end of 2023, dealers had accumulated a surplus of about 175 thousand cars. What is the reason for this? Has a balance been achieved between supply and demand for new Chinese cars? And will they become cheaper? These questions were answered by experts at a round table organized by Reedus on the topic “When will Chinese cars become cheaper?”
According to experts, pent-up demand for Chinese cars arose last year due to a shortage after Western brands left the Russian market. When Chinese cars appeared in the country in 2023, they were actively purchased. However, by the end of the year, demand decreased due to a lack of money from buyers and rising interest rates on loans.
Experts predict that the price of Chinese cars will depend on the welfare of the population. If people have money, cars will be sold. Otherwise the situation will be reversed. Dealers have already started offering small discounts, which may become more significant in the future. However, no significant price reduction is expected.
The domestic market has become “saturated” with Chinese cars, and in the future there will be a balancing of brands and models. Experts believe that Chinese manufacturers could occupy the niche of “relatively cheap” cars for the middle class, but so far there are no such models. For a serious reduction in prices for Chinese cars, either a strong strengthening of the ruble or a reduction in costs in the supply chain is needed.
The round table participants also noted that in the current geopolitical situation, China is afraid to invest in Russia, and a serious localization of the production of Chinese cars in the country is not expected. Russia also does not have the leverage to force Chinese manufacturers to create assembly plants on its territory.
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.