In recent years, the automobile landscape in Russia has dramatically transformedProminent Chinese automotive brands like Chery, Geely, and Great Wall have emerged to dominate the streets, a stark contrast to the past when German and French vehicles held swayAnna, a mid-level manager at a Russian dealership, shared her experiences, noting how her frequent business trips between Moscow and Beijing have allowed her to witness this shift firsthand.

This observation reflects a larger trend: Russia has become the largest market for Chinese auto exportsAccording to the Passenger Car Association, between January and November 2024, Chinese automobile exports totaled 5.84 million units, a year-on-year increase of 23%. Remarkably, 1.06 million of these exports went to Russia alone, marking a 26% increase from the previous year and accounting for more than one-sixth of the total export volume.

Cui Dongshu, Secretary-General of the Passenger Car Association, encapsulated the key drivers behind the rise in Chinese auto exports: supportive circumstances, high quality, diligent effort, and geopolitical shifts

He highlighted the resilience of China's automotive supply chain, the growing contributions from new energy vehicles, the commitment of domestic brands, and the differentiated export strategies being implemented.

Chinese automakers aren’t merely exporting finished vehicles; they are also focusing on an integrated global strategy that encompasses technology, talent, and investment—ensuring a collaborative approach across the entire automotive value chainA stark example of this is Neta Automobile’s launch of large-scale production at its KD factory in Thailand in March 2024, which is expected to produce over 30,000 units annuallySimilarly, Chery’s joint venture with Spanish EV MOTORS saw its first product roll off the assembly line in November.

According to Yin Tongyue, Chairman of Chery Holding Group, Chinese automakers have adopted a globalization strategy that forges partnerships globally, allowing for shared development benefits across regions.

The emergence of Chinese vehicles on Russian roads has been swift and impactful

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Between 2021 and 2022, Chinese companies gradually gained ground in Russia, but by 2023, they took advantage of robust domestic demand and insufficient supply to capture over 50% market shareProjections for 2024 suggest this figure could exceed 60%. Consequently, Russia solidified its position as China’s largest automotive export market, with approximately 160,000 vehicles dispatched to Russia in 2022, swiftly soaring to about 910,000 in 2023—a staggering increase of 459%. As of November 2024, the total reached 1.06 million units, demonstrating a striking 26% growth.

Among Chinese brands, Chery stands out as the most successful in the Russian marketStatistics from the Russian automotive market analysis firm Autostat indicate that from January to October 2024, Chery sold approximately 133,500 vehicles in Russia, a remarkable increase of 41.6%, placing it third in overall sales within the country.

Despite the presence of local car brand Lada, which sells at lower prices, Anna perceives a significant technological edge in Chery’s offerings

The harsh Russian winters still tilt the scales heavily in favor of internal combustion engine vehicles, and Chery has invested significantly in engine technology, resulting in impressive performance and reliabilityAdditionally, local consumers are drawn to Chery’s advanced smart features, including a seamless infotainment system and a comfortable smart cockpit.

Localization is another critical advantage for CheryBefore launching their vehicles abroad, Chery conducts thorough research, ensuring compliance with local regulations and tailoring products to meet the competitive demands of the marketAnna notes that Chery has made specific modifications to their vehicles, including enhancements to chassis design and engine pre-heating systems to improve performance in Russia's extreme coldFor example, knowing that industrial salt used for snow clearance can corrode vehicle underbodies, Chery has incorporated anti-corrosion measures

They also consider cultural differences and local consumer habits in their product designs.

Yin Tongyue likens the approach to understanding local needs to the tale of Sun Wukong, or the Monkey KingHe encourages Chery’s young employees to immerse themselves in the local environment and learn what consumers truly desire instead of merely pushing productsThis understanding fosters a connection with local communities, positioning Chery as a partner in their lives.

The successes of Chery in Russia encapsulate a broader movement among Chinese manufacturers seeking to enhance their international presenceIn 2024, Chery plans to export over 1.14 million vehicles, reflecting a growth of 21.4%. This marks a significant milestone, breaking the one million mark for the first time in a year and highlighting their 22-year reign as China’s top exporter of passenger vehicles.

Another instrumental development comes from the establishment of Haitong Taicang Auto Terminal by a consortium of SAIC Motor Corporation, Shanghai Port Group, and Jiangsu Port Group, which commenced operations on December 12, 2024. As the largest auto ro-ro terminal in the Yangtze River Delta with an annual capacity of 130,000 vehicles, it is anticipated to provide a new export route for Chinese automotive brands.

In the wake of these developments, SAIC has also been proactively expanding its footprint on the European continent, facilitating auto production across numerous countries

Following the launch of its European strategy in 2019, SAIC plans to construct manufacturing facilities across EuropeThe vice president of SAIC Europe emphasized that building factories in Europe will enhance their competitiveness and improve supply chainsThey are evaluating both greenfield investments and the potential for rapid establishment of facilities using existing resources.

Having faced significant domestic sales challenges in 2024, Neta Motors is prioritizing international expansionTheir strategic plan includes launching seven different models abroad over the next three years, targeting over 500 overseas stores across more than 30 countries to achieve annual sales exceeding 300,000 units.

Convergence with global markets continues to be a goal for various Chinese companies, exemplified by the strategic partnership formed with Egypt's Mansour Group, aimed at localizing the MG brand's production

The project, witnessed by Egyptian Prime Minister Mostafa Madbouly in December 2024, is part of a broader strategy embracing open collaboration for mutual benefits in global ventures.

Mansour Group is one of Egypt's largest automotive sales enterprises, and the alliance will establish a modern manufacturing plant designed to realize high production efficiency while addressing diverse local needsThis facility aims for an initial capacity of 50,000 units, with future plans to double production, accommodating a growing demand for eco-conscious vehicles.

Chery further solidifies its global integration efforts with the establishment of their joint venture in Spain, unveiling their first product, the EBRO S700, in November 2024. With nearly 10,000 employees working in overseas locales, Chery emphasizes local manufacturing and standardization of its operations.

As the company’s history unfolds, its foundational principle remains the same: once entering a new market, it’s not just about exports but about integrating into the local society to coexist and contribute positively