March of the discontented: Russian dealers don't like Chinese automakers
In Russia, dealers' satisfaction with working with distributors of Chinese car brands is decreasing. Sellers are not satisfied with the marketing and advertising support for new cars, as well as the work to preserve and develop the dealer network. These are the peculiarities of the mentality and business conduct of companies from China, experts say. Details can be found in the Izvestia article.
Marketing and communication
The level of satisfaction of dealers working with distributors of Chinese brands has decreased significantly over the past two years. This follows from the data of a joint survey among car dealerships conducted by the analytical agency Autostat and the Association of Russian Automobile Dealers (ROAD). The respondents were asked to answer 10 questions and evaluate the car dealership's interaction with distributors and manufacturers of Chinese cars — the maximum value of the ratings was 100 points. According to the results of the study, the overall satisfaction level decreased by 12 points compared to a similar survey conducted in 2023.
Dealers' ratings of advertising and promotion of a particular car brand in the market decreased the most (by 23.17 points). Sellers of Chinese brands also note a decrease in communication and feedback from distributors — by 18.29 points. In addition, estimates of the level of support for new car sales and financial relations decreased by 15.76 and 11.81 points. The level of dealer dissatisfaction with issues related to the maintenance and development of the dealer network, as well as with after-sales service of Chinese cars sold, increased by 7.7 points. The assessment of the level of sales support for used cars decreased by 3.8 points.
There are enough difficulties
Car dealers interviewed by Izvestia confirm that there are indeed many difficulties in relations with distributors and manufacturers from China. According to Andrey Terlyukevich, General Director of Avtospeccenter Group, they relate to various areas of activity: marketing, brand promotion strategy, principles of dealer network formation, after-sales service, financial cleanliness.
— The systemic problem is the imbalance between the inflated ambitions of many brands in sales and the real capacity of the Russian market. Many Chinese companies overestimate their capabilities and underestimate the difficulties of our market. The business incurs direct losses from this. As well as many distributors, — Andrey Terlyukevich told.
He noted that there are manufacturers who have significantly improved their relationships with car dealers. At the same time, there are those who have left their network virtually without any support, he added.
Difficulties in relations with Chinese distributors and automakers are a consequence of the dynamics of the Russian market in 2025 and the turbulence that has been observed throughout the past year, said Andrey Olkhovsky, CEO of Avtdom Group.
— When there is a tactic to increase sales, then, of course, it is mostly a matter of price and additional support. Therefore, when a distributor begins to incur losses, he expects that the car dealer will reduce his expectations. But the dealer has his own role, and hence all the disagreements between the parties. Dealers have their own local tasks that they must implement. These tasks differ from those of a distributor, as do the costs of dealers," he told Izvestia.
Among the key problems is the high concentration of dealer networks in large cities, says Ilya Petrov, Director of Retail Sales at Avilon AG. Because of this, the profitability of car dealerships is extremely low, and taking into account operating costs, the business in many cases becomes unprofitable, he noted.
Alexey Podshchekoldin, the head of the ROAD, warned about the excessive number of dealers of one brand last summer.
"In some cases, car dealerships of the same brand are located literally on neighboring streets, and they are forced to compete with each other," he noted.
The reason for this is the lack of a well-established strategy for the relationship between dealers and manufacturers, says Nikolai Ivanov, director of the New Car Sales Department at Rolf. Now many companies are still testing different business models — these processes lack consistency, he noted.
— However, there are brands that see this problem and are very competent at building a brand in the Russian market. And building a brand is a foundation that must be laid. We must be objective — manufacturers from China have been the main participants in the Russian market for only a few years. Big processes take time, we understand that. But sometimes we come across situations where the goal is to make a short—term profit, which does not fit in with long-term plans and strategies," said Nikolai Ivanov.
According to him, in the Russian market, which is not so large in volume, it is necessary to act practically jewelry in order to succeed. He said that, for example, the Chinese market reached almost 27 million cars last year, while only a little over 1.3 million new cars were sold in our country. In addition, while the average car ownership period in China is 1.5 years, in our country it reaches seven years, the expert emphasized.
— Therefore, communication and forms of interaction are completely different. Buying a car for our people is a big event, it can only be compared with buying real estate. The attitude towards this is different in China," said Nikolai Ivanov.
In addition, he calls the drains of cars a serious problem. According to him, large volumes create a "curvature" of the trade balance, which, in turn, leads to a loss of marginal profitability of the business.
Isolated events
The decrease in marketing and promotion of their models by Chinese manufacturers is noted not only by dealers, but also by companies involved in organizing and conducting various automotive events. According to Alexey Simakin, the founder and owner of the Avtorazum event agency, this trend is especially noticeable in comparison with European car brands that have left the Russian market.
— For example, for many years we have held an annual Land Rover Tour. In every Russian city where there was a dealer of this brand, our instructors demonstrated the off—road capabilities of the brand's cars on special structures and simulators. We also held similar events on the race tracks at the AMG Performance Tour," he said.
According to Alexey Simakin, each such event was attended by several hundred or even thousands of potential customers. And as a result, many of them came to dealers for a new car, he noted. Chinese automakers are quite inert in this regard, and their interest in customer test drives in this format is rather weak, he notes.
— A couple of years ago, only one Chinese brand did something similar. Other brands, as a rule, only single events of this format become obsolete. Moreover, most often they take place within the framework of some other events and events, such as marathons or other sports competitions," Alexey Simakin told Izvestia.
Features of the mentality
The approaches of Chinese and European companies to doing business, including automotive, are noticeably different, says Igor Morzharetto, partner at Autostat. It is the difference between these approaches, due to the peculiarities of the "Western" and "eastern" mentalities, that has caused a decrease in dealer satisfaction with relationships with partners from China, he believes.
— Both sellers and buyers of cars are used to the "Western" approach. But the situation has changed: it is the "Chinese" with their vision that now occupy a large share of the market. Many people have not adapted to this yet and therefore express their dissatisfaction," notes Igor Morzharetto.
Different approaches to legislation in the field of car sales also leave their mark, the expert believes. The most striking example of this is the requirement to provide a discontinued car model with spare parts for 10 years after its release, he noted.
— This norm came to us from Europe a long time ago and is taken for granted. But there is no such requirement in China. And despite the fact that manufacturers from China operating in our market comply with this rule of law, there are still certain difficulties and misunderstandings in this matter," the expert said.
It's all about money.
Any support for a dealer by an automaker or distributor requires finances, Maxim Kadakov, editor-in-chief of Za Rulem magazine, emphasizes. In conditions when the market is declining, it is becoming increasingly difficult to find funds for such support, he explained.
— The vast majority of discounts, promotions, and special programs related to both direct car sales and compensation for a portion of car loan rates were subsidized by the automakers themselves or distributors. We don't know how the same "Europeans" or "Koreans" that Russian dealers have become accustomed to working with over the past few decades would behave in this situation. It is likely that in the current conditions they would also have to limit such support, and it is possible that the level of dealer satisfaction with them would also decrease," Maxim Kadakov believes.
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