Zhang Xiaoyu: Russia has become China's first exporter of automobiles
On August 1, Zhang Xiaoji, Chairman of the China Association of Automobile Engineering, spoke at the "2007 China-Russia Automobile Trade Cooperation Forum," organized by the China Automotive Engineering Society, the Department of Commerce of Heilongjiang Province, and the People's Government of Harbin. He emphasized that Russia has now become a key market for Chinese auto exports, marking a significant shift in trade dynamics between the two countries.
According to official data, in 2006, China exported 38,000 vehicles to Russia, valued at $350 million—an impressive 300% increase compared to the previous year. This growth propelled Russia from sixth to first place in the list of China’s top car export destinations. Zhang noted that this rapid expansion reflects not only the growing demand in Russia but also the strategic advantages of its geographical proximity to China.
Initially, only a handful of Chinese automakers like ZTE and Great Wall were active in the Russian market. However, today, dozens of Chinese companies are actively selling cars there. During the "China Auto Russia Tour" in May, several major manufacturers including FAW, Dongfeng, SAIC, Futian, JAC, Shaanxi Auto, Chery, Brilliance, Changhe, Shuguang, and Weichai were present. Some, like Chery, have already started local assembly of models such as the Cowin and Tiggo, while Great Wall Motor has established a network of ten integrated dealerships offering sales, after-sales service, and parts supply.
Despite these positive developments, challenges remain. Zhang Xiaolu pointed out that public perception of Chinese cars in Russia is still largely negative, with media coverage often highlighting problems rather than progress. He noted that some Russian media outlets are influenced by multinational competitors, which may exaggerate issues to undermine Chinese automotive brands.
He also raised concerns about specific problems, such as product quality, after-sales support, and brand building. Some companies engage in border trade by registering shell companies to sell cars, making it difficult to trace real manufacturers. Additionally, certain middlemen sell new cars as used ones to evade taxes, harming consumer interests and damaging the reputation of Chinese-made vehicles.
Zhang highlighted that Russia has stricter import regulations than domestic standards. For example, noise levels must meet higher requirements than European norms, and emissions must comply with Euro II standards, even though domestic vehicles only need to meet Euro I. Since Russia is not part of the WTO, Chinese companies cannot rely on international trade rules and must adapt to local laws and policies, which can change rapidly.
In conclusion, Zhang stressed that without addressing these issues effectively, the Chinese auto market in Russia could be short-lived. The priority for Chinese automakers should be improving product quality, strengthening brand image, and establishing a reliable after-sales system to build long-term trust and ensure sustainable cooperation between China and Russia in the automotive sector. He urged all companies entering the Russian market to uphold the image of Chinese automobiles and act responsibly.
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