As one of the BRIC countries, Russia, its automotive market has long been a stable growth point for overseas auto companies in China. However, the tightening of the Russian market after the financial crisis in 2008 and the Russian government’s protection of the domestic automobile industry have introduced a series of restrictions. This has greatly limited the sales of Chinese cars exported to Russia. Has the Russian market recovered since the winter? Can China's car prices reshape the Russian market?
Around 2008, Russia has always been a big blue ocean in the eyes of Chinese auto companies. Chery, Great Wall and other brands have occupied the Russian market with vehicle export and KD assembly. Later, due to the Russian automobile joint venture policy, the Chinese auto trade of the Chinese legionary team came to an end. As the impact of the financial crisis gradually faded, international energy prices continued to rise, stimulating the strong economy of Putin's government, which has made Russia the fastest growing global automobile sales market in the past four to five years. At the same time, Europe, the United States, Japan and other global leading automotive companies Also to compete for the Russian market.
Chinese brands currently compete primarily in the low-end market in Russia, but as the automobile consumption in Russia gradually matures, Chinese brands are experiencing the impact of used cars from European, American and Japanese brands. Currently, in Europe, the annual transaction volume of used cars is generally twice that of new cars, so there are few opportunities for the Russian passenger car market to be reserved for Chinese new car brands. However, commercial vehicles, especially light commercial vehicles, seem to leave more space for Chinese companies.
On July 19th this year, Beijing Automobile Manufacturing Co., Ltd., a subsidiary of Beijing Automotive Industry Group Corporation (hereinafter referred to as "Beiqi Automobile Co., Ltd."), and Beijing Automotive International Trade Co., Ltd. were established in Ulyanovsk, Russia, and BMC, a wholly-owned subsidiary of Russian AMS Group. The joint venture automobile manufacturer BAW Ross Automotive Co., Ltd. is engaged in the assembly, manufacture and sale of commercial vehicles in Russia.
It is reported that this is the first large-scale joint venture project in Russia after the 2008 financial crisis. The newly established joint venture company has a total investment of approximately 176 million U.S. dollars, and Beiqi’s two companies and BMC each hold 50% of the shares. The planned annual production capacity is 60,000 commercial vehicles. From 2012 to 2015, the annual output of the joint venture will reach 20,000 vehicles, all of which are parts and assemblies.
There is great room for growth in the Russian commercial vehicle market. Chinese car companies perform better in the field of commercial vehicles than passenger vehicles. Learning to use strengths and avoiding shortcomings to play their own advantages is beneficial to the overseas development of Chinese enterprises.
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