Categories: Auto News

Auto expert Kogan: new Chinese brands are not entering the Russian market due to increased recycling fees

There are no formal bans on the entry of new Chinese auto brands into the Russian market, but they are held back by economic inexpediency. The founder of the VseIzKitaya company, Andrei Kogan, told Rossiyskaya Gazeta about this.

“The key limiting factor was the sharply increased recycling fee, which largely eats up the price advantage of Chinese cars. This is compounded by a drop in demand for new cars in Russia and the sheer scale of the market,” the expert noted.

Additional barriers may include changes in China’s state support system, as well as the position of Russian dealers, who require serious marketing budgets and a developed service network. Some brands, like Wuling, have historically focused on the domestic Chinese market and do not export.

Previously, the Ministry of Industry and Trade approved a list of localized vehicles for use in taxis.

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