There is a growing popularity of cars from China on Russian roads. This trend indicates the determination of Chinese carmakers to consolidate their positions in the market, not limiting themselves to domestic demand, but actively expanding the geography of exports. During the first six months of 2023, exports of passenger cars and trucks from China reached impressive figures of $4.6 and $1.7 billion, respectively. This provided the country with the opportunity to increase its share in the global market by 70%. A comparison with the first half of 2022 shows an astronomical increase of 543%.

Where does the interest in Chinese brands come from?

The increased interest in Chinese brands in the Russian market can be explained by several key factors.

1. Firstly, the shortage of components has affected the reduction in domestic car production.
2. Secondly, a significant decrease in imports of cars from the countries of the European Union, South Korea and Japan forced Russian drivers to turn their attention to Chinese brands.
Today, there is a wide range of car models on the market to suit any taste — from traditional gasoline and diesel cars to modern electric cars.

Popular brands

Among the Chinese brands that have gained popularity in Russia, the following ones stand out in particular:

• Chery, which has been present on the Russian market since 2005, after opening its own production in Kaliningrad. Consumers appreciate cars of this brand for their economy, reliability and resistance to low temperatures. The range of models includes both sedans and SUVs of various modifications;
• Omoda, a subsidiary of Chery, offers the Omoda S5 model, equipped with a turbocharged engine and a wide range of options, including climate control system and a sunroof;
• Exceed, another line of Chery brand, produces high-end crossovers and SUVs, among which the Exceed TXL and VX models are in particular demand due to their power and capacity of body;
• Geely holds a leading market position, offering consumers modern crossovers and sedans that meet the requirements of economy and manufacturability;
• Changan presents a wide range of cars, from sedans to crossovers, which stand out for their design and specifications;
• JAC Motors and FAW produce not only passenger cars, but also trucks, as well as buses. They are reliable and affordable;
• Haval brand specializes in crossovers and SUVs. All models run on 92 gasoline;
• GAC has already established itself in the Russian market as a manufacturer of high-quality and technologically advanced cars.

The choice in favor of Chinese cars for many Russians is not only due to their affordable price, but also to the convenience of delivery due to well-established logistics routes.

Car delivery routes from China

Three methods are used to transport cars from China to the Russian Federation.

1. By sea. The transport is transported to Vladivostok, where there are two terminals to receive cargo. Usually cars of Exceed and Chery brands are delivered there.
2. By road. Huge car carriers go through the Zabaikalsk station, and also through Kazakhstan.
3. By rail. The cars are transported in containers that are placed on the platform. Trains run to the stations of the Moscow transport hub: Vorsino, Hovrino, Bely Rast. And this is not the whole list of destinations.

The launch of high-speed trains significantly reduced delivery terms, which led to an increase in deliveries by rail. Railway transportation of cars from China to the Russian Federation has increased in all directions. And they account for 17-18% of the total volume of container imports. At the same time, direct deliveries of electric cars from China to Russia amounted to $262.6 million in 2023, or 8.5 thousand units, which is almost three times higher than the year before — 3.11 thousand units.
Delivery terms

UTLC ERA JSC sends up to 30 trains daily to the East-West ITC, ensuring, in cooperation with carriers and partners, high speed, steady shipments and 100% safety of cargo en route.

The base route of UTLC ERA JSC in the western direction runs from stations and terminals on the border of Kazakhstan/China and follows the railways of Kazakhstan, Russia and Belarus to stations and terminals on the border with EU countries. In the opposite direction, goods in containers travel from EU countries to China and Southeast Asian countries along the same route through the EAEU countries.

The initial or final stage of container delivery to key points in Europe or China on adjacent 1435 mm gauge infrastructures is carried out by the Company's partner companies. A case in point of the effectiveness of such cooperation is the fact that the transportation of 9 out of 10 containers in the China-Europe-China railway is carried out today in services of UTLC ERA JSC.

The estimated delivery time to the stations of the Moscow hub from China is 15 days.

The advantage of imports from China

The most obvious advantages of transporting cars from China to the Russian Federation

1. Low price of car. China today is a major manufacturer of motor vehicles that run on gasoline and electricity. Some brands have lines of hybrid cars.
2. The proximity of the Russian Federation and China. This significantly reduces the shipping cost.
3. Convenience of transportation. The cars are transported along already dialed-in supply chains.
4. An abundance of delivery methods and routes for the transportation of cars from China.

Chinese cars are often the only option for many Russians who want to buy a new car due to its economic affordability.

Based on the results of 11 months of 2023, according to the calculations of Russian Railways experts, over 2.9 million tons of cars and their spare parts have been transported. This is 66% more than in 2022.

On average, 19,000 units of vehicles are transported in the services of UTLC ERA JSC per year.