Comprehensive Russian Car Market Overview. Best Russian Car Brands, Сompanies and Sellers

In 2023, Russia entered the top 20 global car markets, ranking 16th. The country sold 1.06 million cars, representing a 69% increase over the previous period. This marks the highest growth rate among all global car markets. Analysts attribute this impressive surge to the low figures of 2022 when the Russian car market contracted by 59% due to shifts in the political landscape. After this decline, growth rates began to accelerate. 

In total, 1.31 million vehicles, including trucks and passenger cars, were sold in Russia. Of these, 250.4 thousand were commercial vehicles, representing a 45% increase compared to the previous period. 

This report evaluates the results of car sales by the end of 2023 and considers the prospects for the present period.
 

Russian Car Market Structure

Since the end of 2022, there have been significant changes in the structure of the Russian automobile market. Chinese brands have assumed the position of Western manufacturers that have exited the market as a result of sanctions. In 2023, the Association of European Businesses (AEB) reported that Chinese automakers had become the leading sellers of new cars in the Russian market. 

Since that time, Russia has become the largest export market for Chinese automobiles. According to China Association of Automobile Manufacturers (CAAM) statistics, China exported 841,000 cars to Russia between January and November 2023. It is important to note that this is not an accidental outcome. Chinese brands began exploring the Russian market as early as 2004. In 2013, sales exceeded 100,000 units, marking the beginning of expansion.

Furthermore, Russia is pursuing the development of domestic brands. The top-selling brand in 2022 was Lada, produced by the state-owned AvtoVAZ concern. To bolster the Russian car industry, the Russian government has amended the relevant legislation, stipulating that officials may only utilize domestic vehicles. With the backing of the former Renault concern, the Moskvich 3 crossover was launched into serial production. This vehicle is a re-engineered version of the Chinese model JAC JS4.

Collaboration with Chinese automakers helps offset the decline in vehicle supply following the withdrawal of Western brands and curbs price growth. The localization of production in Russia creates new employment opportunities and contributes to the growth of the automotive industry.

Top 10 Auto Brands in Russia

The Russian brand LADA saw an 8.5% increase in market share between 2021 and 2023. Four European brands, Renault, Skoda, Volkswagen, and BMW have all fallen out of the top 10 best-selling automobiles in Russia. 

Concurrently, Chinese automakers have significantly reinforced their market presence. Just three years ago, only Chery occupied a spot in the top 10 best-performing models on the Russian market. Currently, six different brands from the Chinese automakers represent the Celestial Empire in this ranking.  Chery, Haval, Geely, Changan, EXEED, and OMODA are now in the top ten automobiles sold in Russia. The first two brands already account for 10% of the automobile market.

Korean brands Kia and Hyundai, as well as Japanese competitor Toyota, have retained their presence in the top rankings. However, Korean and Japanese manufacturers have experienced a notable decline in their market positions, currently occupying the last three places in the ranking.
 

Top-selling foreign cars in Russia

The top five best-selling foreign brands are led by Chery. In 2023, the company sold 118,000 vehicles, representing 11.2% of the Russian automotive market. Haval follows with sales of 111,000 units, representing 10.6% of the market. These two brands demonstrated a growth rate exceeding 200% in 2023. 

Additionally, Geely, Changan, and Omoda are among the top leaders in the market. These Chinese brands account for 47% of the Russian car market, which totaled approximately 498,000 units sold. The Omoda brand, in particular, demonstrated impressive growth, with a 3,288.5% increase since 2022.
 

Omoda C5 named Car of the Year 2023 in Russia

How Many Auto Dealers Work in the Russian Market?

As of the beginning of 2024, there were 3,653 car dealerships officially operating in Russia for the repair, sale, and servicing of cars. This represents an increase of 489 centers compared to 2023. 

The year 2023 saw the introduction of several new brands from China, which opened new service centers. The first of the newcomers is Jaecoo, which established 158 dealerships from scratch in 2023. The next largest player in the market is the Jetour car manufacturing company, which currently operates 145 dealerships. Kaiyi ranks third among new brands with 105 sales centers. A total of 19 new Chinese brands have established dealerships in Russia. 

Many of the previously established Chinese brands have expanded their presence. The JAC brand opened 52 new showrooms, Changan launched another 51 sales centers, and Omoda opened 49 new showrooms. Additionally, Geely, Voyah, FAW, Haval, and Exeed brands have expanded their dealer networks in Russia.

Also, Russian brands have expanded their footprint in the Russian car market. For instance, Moskvich launched 71 new sales showrooms in 2023, Evolute opened 15 new dealerships, and Lada established only four new showrooms. 

The majority of brands from the Americas, South Korea, Japan, and Europe have been eliminated. Additionally, Chinese companies have expanded their dealer network to comprise 65% of the total number. Auto industry analysts anticipate continued expansion by Chinese and Russian manufacturers.

Forecast for the future

The Russian car market is set to continue its growth trajectory in 2024. To date, over 700,000 vehicles have been sold in the first five months of the year. Analysts at Avtostat anticipate continued sales growth, with an estimated 1.25 million cars sold by the end of 2024, representing an 18% increase. Additionally, more optimistic projections indicate a potential for sales growth of 32%, reaching 1.4 million units. 

As stated by the president of AvtoVAZ, Maxim Sokolov, the company's objective is to produce in excess of 500,000 cars in 2024. It is anticipated that 450,000 units will be sold on the Russian market, with 100,000 of these being delivered under a state order.

Analysts anticipate that China may account for up to 80% of the Russian car market. Production of three leading Chinese brands is scheduled to commence at the St. Petersburg, Togliatti, and Izhevsk plants. This initiative will create new employment opportunities and reduce the proportion of imports from China.

Most importantly, it will meet the demand of the Russian audience. 

Conclusion

The Russian car market has undergone a restructuring process, and there is a growing trend of Chinese presence in the market. It is anticipated that car brands from China will assume even more prominent roles in the Russian market. 

RMAA specializes in the promotion of foreign companies in Russia and the CIS. Based on our research, analytics, and experience, we will assist you in developing and implementing a strategy to promote your automotive brand. To discuss the specifics, please contact our manager by completing the form in the Contacts section. We guarantee prompt feedback. 

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