MOSCOW, March 25. /TASS/. The removal of sanctions would not only pave the way for the return of European car brands to the Russian market but also attract new leading Chinese manufacturers that currently export vehicles to Russia through parallel imports, research fellow at the Gaidar Institute Dmitry Evdokimov told TASS.
"If sanctions are lifted, the Russian market could see the return of European brands as well as the arrival of new Chinese manufacturers that have so far been hesitant to enter officially. For instance, Zeekr - a premium sub-brand of Geely - and Lixiang (Li Auto), one of China’s leading electric vehicle producers. At present, like European brands, they refrain from entering the market directly but actively supply vehicles to Russia through parallel import channels," Evdokimov stated.
According to him, Chinese automakers are not making long-term localization investments in Russia due to uncertainty regarding their market position should other brands return.
At the same time, he noted that the reentry of European automobile brands into the Russian market could lead to lower prices and heightened competition among Chinese manufacturers. In an effort to reclaim their market share, European automakers may resort to aggressive pricing strategies, including dumping tactics.
Furthermore, the level of after-sales service could see significant improvements. "Competition will drive enhancements in both warranty and post-warranty services, which currently remain weak points for many Chinese manufacturers," the expert noted.