Chinese Cars Start To Be Low In Interest In This Country

Chinese car exports to Russia fell 58 percent. (Photo: Carnewschina)

JAKARTA Cars from Chinese manufacturers no longer seem to be an option in Russia. Car exports in full from Chinese automotive manufacturers to Russia fell 58 percent in the period January to September 2025.

That's based on the latest data from the China Passenger Car Association (CPCA), as reported by Carnewschina, Thursday, November 20. This decline marks a major shift in the flow of vehicle trade between the two countries.

During these nine months, total exports only reached around 357,700 units, much lower than the previous year. Russia was previously the largest export market for Chinese cars, but several factors made demand in the country decline rapidly.

One of the main causes is Russia's policy of tightening import regulations. Since October 2024, the cost of recycling imported vehicles has increased to around 29,300 US dollars. This policy makes vehicle entry costs increase significantly.

In early 2025, the Russian government again raised the import rate of vehicles to be in the range of 20 percent to 38 percent. This surge in cost burdens suppressed importers' profits and reduced market interest in cars sent intact from China.

Russia's domestic economic condition has also worsened the situation. The benchmark interest rate, which is still perched at 21 percent and the automotive loan interest rate is around 30 percent, making it increasingly difficult for people to buy new vehicles. As a result, the average price of cars in the Russian market has soared.

In Hong Kong's IPO prospectus, several Chinese manufacturers such as Chery Automobile acknowledged that their profit margin in Russia was narrowing due to these conditions. The company even plans to reduce its business activities in Russia by 2027.

CPCA notes that the shift in export destinations is now heading to other regions. Mexico is listed as the largest export destination country with 410,700 units, followed by the United Arab Emirates with 367,800 units. Russia, which was previously at the top, has now dropped to third.