Zhang Xiaoyu: Russia has become China's first exporter of automobiles

On August 1, Zhang Xiaoji, Chairman of the China Association of Automobile Engineering, addressed the "2007 China-Russia Automobile Trade Cooperation Forum," a joint event organized by the China Automotive Engineering Society, the Department of Commerce of Heilongjiang Province, and the People's Government of Harbin. During his speech, he highlighted that Russia has now become a key market for Chinese car exports. According to official data, in 2006, China exported 38,000 vehicles to Russia, totaling $350 million—an impressive 300% increase compared to the previous year. In terms of export rankings, Russia moved from sixth place in 2005 to the top spot in 2006, signaling a growing interest in the Russian market. Zhang Xiaoji emphasized that Russia’s vast market potential and its geographical proximity to China make it an attractive destination for Chinese automotive companies. Initially, only a handful of firms like ZTE and Great Wall were exporting cars to Russia. However, today, dozens of Chinese automakers are actively participating in the market. During the “China Auto Russia Tour” in May, several major companies—including FAW, Dongfeng, SAIC, Futian, JAC, Shaanxi Auto, ZTE, Brilliance, Changhe, Shuguang, and Weichai—were either already present or exploring opportunities to enter the Russian market. Chery stands out as one of the most active players, having already partnered with Russian companies to assemble models such as the Cowin and Tiggo in Russia. Great Wall Motor has also established multiple sales centers across the country, offering integrated services including after-sales support and spare parts supply. This marks a significant step forward for Chinese auto companies in their trade with Russia, shifting from simple exports to more strategic market development. Zhang Xiaoji predicted that China’s car exports to Russia this year could reach 60,000 units. However, he acknowledged that the perception of Chinese cars in Russia remains mixed. Negative media coverage often overshadows positive developments, with some Russian outlets being influenced by foreign interests and amplifying any issues within the Chinese automotive industry. He also pointed out existing challenges, such as product quality, after-sales service, and brand reputation. Some companies engage in border trade by registering shell companies to sell cars, while others sell new vehicles as used to avoid taxes, harming consumer interests and damaging the image of Chinese-made cars. In addition, Zhang noted that Russia imposes stricter requirements on imported vehicles than on domestic ones. For example, noise levels must meet higher standards than those in Europe, and emissions must comply with Euro II standards, even though Russia does not belong to the WTO. As a result, Chinese manufacturers must adapt to local regulations without the protection of international trade rules, making investments in Russia a cautious move. Zhang concluded that if these issues are not properly addressed, the growth of Chinese cars in Russia may be short-lived. The key to long-term success lies in improving product quality, building strong brands, and establishing reliable after-sales services. By doing so, Chinese automakers can build a solid reputation in Russia and ensure sustainable cooperation between China and Russia in the automotive sector. Finally, Zhang urged all Chinese companies entering the Russian market to maintain the overall image of Chinese automobiles and work together for mutual benefit.

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