Replacement for Apple, BMW, Mercedes
Chinese brands are spreading in Russia
2/26/2023 5:26 p.m
The Ukraine war prompts Western brands to withdraw from Russia. China is filling the gap: Smartphones from the People’s Republic have now conquered the market. Chinese new cars are also becoming increasingly popular when it comes to cars – BMW and Mercedes, on the other hand, are disappearing.
Chinese smartphone suppliers have taken the place of Samsung and Apple in Russia, according to market researchers. The two largest manufacturers left the market last year after Russian troops invaded Ukraine. Chinese brands accounted for around 95 percent of the market at the turn of the year, the broadcaster CNN reported, citing figures from the analysis company Counterpoint Research.
The largest provider is Xiaomi with more than 50 percent. Chinese smartphones were already popular in Russia before the war. Counterpoint estimated their stake at around 40 percent at the end of 2021. Samsung with its various models and Apple with the iPhones together accounted for around 53 percent of the market. Now number 2 after Xiaomi is Realme.
A similar story is playing out on Russia’s streets, according to the CNN report. In 2022, Chinese automakers Chery and Great Wall Motor climbed into the top ten best-selling in Russia. Meanwhile, German car brands BMW and Mercedes have disappeared, citing data from S&P Global Mobility. According to the analysis company Autostat, the number of new Chinese cars sold in Russia rose to a new record of 121,800 vehicles, although the Russian market as a whole was rocked by a slump.
Russian brands are also benefiting from the West’s withdrawal: According to S&P data, Lada, the most popular Russian car manufacturer before the war, was able to increase its market share from around 22 to 28 percent in 2022, CNN reported. Renault sold its majority stake in Lada in May.