Chinese Cars Find Easy Road in Russian Market

SHANGHAI - September 18, 2007:

Russia may import 120,000 Chinese-made cars this year, a Russian official predicted.

Andrei Novikov, head of the international department of the Center for Strategic Research (CSR) in Russia made this prediction during his recent visit to China. The mission of Novikov's visit is to work with Chinese automobile experts to prepare for the First Sino-Russia Automobile Forum which is to be held on October 25-26.

"In 2004, there were no Chinese cars in Russia; in 2005, 5000 Chinese vehicles were sold here and the figure jumped to 20,000 in 2006. During the first half of this year, Chinese cars rose to 40,000 units," said Andrei Novikov.

During the first eight months, Chery Automobile, China's leading home-grown carmaker has witnessed the biggest increase in sale in Russia, according to an Interfax report. Chery's sales rose 580% to 24,000 units during this period while the foreign brand cars in Russia rose 66% on average.

At the Moscow International Auto Show in late August, 22 Chinese brands covering more than 60 different models were on display. Russian audiences surprisingly found that the show highlighted Chinese cars with the absence of European automakers--the European Automobile Manufacturers Association decided to attend the show every second year.

Novikov said Chinese-made automobiles has a great potential in Russia; however he's also concerned with problems as quality and brand awareness. "They have a lot of work to do on exporting channels and price-setting," he added.

He also considered the first Russia-China Automobile Forum next month in Beijing as a good chance to boost bilateral auto trade.

For more information about the burgeoning auto industry in China please visit http://www.gasgoo.com/Autobiz/list/7/China-News.html