Chinese automaker Chery has begun assembling vehicles in three former Western-owned factories in Russia. These plants, previously operated by companies like Volkswagen and Mercedes-Benz, were vacated after many Western businesses exited the Russian market in response to the February 2022 invasion of Ukraine. According to Reuters, Chery’s vehicles are now being assembled in these facilities, marking a significant development in Russia’s auto industry.
Chinese automakers now dominate more than half of Russia’s car market in terms of sales, following the departure of most Western competitors. Chery alone accounts for nearly 20% of passenger vehicle sales in Russia. To meet demand, Chery is not only importing finished cars but also sending nearly assembled vehicles to Russia, where final assembly is completed at these repurposed factories.
The Russian government has been raising fees on imported cars, further incentivizing foreign automakers to localize production. This shift is beneficial for Chinese companies like Chery, which see strong potential in the Russian market, particularly as domestic production capacity remains underutilized.
At the former Nissan plant in St. Petersburg, Chery’s Tiggo 7 SUV is now being rebranded and sold as the "Xcite X-Cross 7." Chery models are also being produced at a plant in Kaluga, which previously belonged to Volkswagen, as well as at another factory in the Moscow region that was once owned by Mercedes-Benz.
Chery has seen rapid growth in the Russian market. Its sales have nearly quadrupled, with over 200,000 vehicles sold in 2023, a figure that has already been surpassed in 2024.
