China will dominate Russia’s car market

Significance

The withdrawal of Western, Japanese and Korean companies created a vacuum in the Russian car market. Chinese automakers exploited this opportunity, rapidly increasing their market share in all market segments. Although this helped stabilise the market in 2022, it has created longer-term challenges for Russia’s automotive industry.

Impacts

• Russia’s growing economic dependence on China will generate rising economic and political vulnerabilities.
• The appropriation of European technology and expertise by Chinese companies may undermine European manufacturers in other markets.
• Chinese manufacturers will dominate the Russian truck market.