Ten car brands may leave Russia due to lack of demand

Up to ten Chinese car brands may leave the Russian market in 2025. This was reported by Kommersant on April 16, citing interviewed dealers and analysts. In their opinion, the brands Oting, Kaiyi, SWM, Livan, VGV and MG were in the risk zone.

The Association of Russian Automobile Dealers (ROAD) said that the number of Chinese brands in the "influx into the market turned out to be beyond its capabilities." The departure of some brands will definitely take place due to overstocking of warehouses, high lending rates and low consumer activity.

Gazprombank Avtolizing estimated that in the first quarter of this year, 213 showrooms of Chinese brands were closed, which is 3.2 times more than a year earlier, while the number of openings decreased by half (to 124 units). For example, Bestune (FAW) has reduced its sales network by 26 showrooms, while Kaiyi's has decreased by 20. Analysts cite the reason for the lack of the most liquid model range, the dealer's low income on each transaction and low sales in terms of the salon.

The interlocutors of the publication note that dealers will refuse to extend contracts with Chinese brands that generate losses. Now they are more likely to decide to terminate franchises that do not demonstrate economic efficiency. Companies are in no hurry to participate in tenders for the dealership of Chinese brands and take extra cars to the warehouse.

"Judging by the sales statistics for the first quarter of 2025, the question is "Why are you here?" They are caused by many brands. For example, Forhing, VGV, MG, Oting, JMC, Livan, whose monthly sales in the country do not exceed several dozen cars," said Andrey Terlyukevich, CEO of Avtospeccenter Group.

Last year's snow: new car sales halved in March

Why has the purchasing activity of Russians decreased?

The day before, it was reported that about a third of Chinese brands in Russia increased their discounts on new cars in the amount of 70-100 thousand rubles to maintain demand. Some brands offer discounts of 5-10% on cars manufactured in 2024, and for unclaimed equipment the discount can reach 15-20%.

On April 4, it became known that sales of new passenger cars in Russia in March 2025 amounted to 79.8 thousand units, which is 45.5% less than in March last year.