Chinese automaker Chery Automobile Company began vehicle assembly in Russia earlier this year, according to a Reuters report earlier this month citing people close the company.
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The unconfirmed report suggests Chery now carries out local assembly, through local contract-assembly partners, at three vehicle plants previously owned by Volkswagen, Mercedes-Benz and Nissan – which ceased operations in 2022 after the West imposed wide-ranging sanctions on Russia following its invasion of Ukraine.
Chery recently stated that it does not plan to build or buy its own factories in Russia, but did not comment reports that its vehicles are now assembled in the country.
Chinese automakers have aggressively expanded their presence in Russia in the last two years after European, Japanese and South Korean automakers were forced to cease operations in the country due to the sanctions. Manufacturers such as Toyota, Honda, Nissan, Hyundai, Volkswagen and Mercedes-Benz have had to write off huge investments by selling their local production facilities often at a nominal price.
Chinese brands are now estimated to account for at least half of Russia’s new vehicle market, with Chery accounting for around 20% of the total, the reports suggest. Chery is reported to have begun semi-knocked down (SKD) at the three plants, which would help to reduce import tariffs.
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By GlobalDataSeparate reports recently suggested that vehicle production in Russia has now recovered to pre-invasion levels, with output in July amounting to almost 139,000 vehicles – compared with 133,000 in July 2021.
