Russia Export Slide Forcing a Rethink at Some Chinese Carmakers

Russia turned into a lucrative market for Chinese automakers after the invasion of Ukraine, as they rushed in to fill the void left by foreign brands. That easy access may be over.

In late 2024, Moscow started raising a “recycling fee” on imported vehicles that’s seen the price of passenger cars with one- or two-liter engines go up by the equivalent of more than $8,000. High borrowing costs meanwhile have weighed on consumers, causing Russia’s auto sales to contract by 27% in the first half. Imports of Chinese cars plunged 62% in the same period.