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The landscape shifted dramatically in 2025. Sales of Chinese cars in Russia fell 58% compared to the previous year, with total exports dropping to just 357,000 units. Once the top market for Chinese brands, Russia has now been overtaken by Mexico and the United Arab Emirates, falling to third place. This rapid decline came as a shock to both consumers and industry observers.
The slump wasn’t simply due to fading interest. A combination of government policy changes and inherent issues with Chinese vehicles themselves significantly weakened their competitiveness. The old assumption that this market will sell no matter what no longer holds true.
Several key factors contributed to the downturn. First, starting in October 2024, Russia raised scrappage taxes on imported cars by 70–85%. For vehicles with 2–3L engines older than three years, the tax jumped from 1.3 million rubles to 2.37 million rubles (roughly 16,000 USD), nearly matching the price of a new car, which discouraged many buyers from importing vehicles.
Second, in January 2025, Russian customs increased import duties on foreign cars to 20–38%, raising clearance costs for Chinese vehicles from 1,000 rubles to as much as 30,000 rubles (around 200 USD–400 USD), further limiting options for local buyers. Third, in previous years, the withdrawal of established German and Japanese brands had helped Chinese cars gain market share, but with easing tensions between Russia and Ukraine, these brands are gradually re-entering the market, prompting many consumers to postpone purchases and adopt a wait-and-see approach.
