The expert warned about a reduction in the number of Chinese car brands in Russia

In the future, some Chinese car brands may choose to leave Russia or reduce their presence. This was stated by Andrey Kogan, founder of the All-China company, Chairman of the Committee for Work with China of the Association of Exporters and Importers, Rossiyskaya Gazeta reported on June 26.

According to the expert, there are several reasons for this development. One of them is government policy, which actively stimulates the development of production within the country. This puts companies in front of the need to invest in assembly sites, logistics and supply chains, which not everyone is ready to do.

As Kogan explained, the brand's presence in the market requires high costs. In addition to simply bringing cars and opening several dealerships, it is necessary to maintain a spare parts warehouse, train staff, develop a service network, provide warranty service and regularly update the model range.

In addition, the expert noted that the market is beginning to filter out less successful participants, since for the buyer, the presence of a large number of brands creates the illusion of widespread competition, but in fact, similar cars are sold under different brands on the same platforms. At the same time, companies with a limited network of dealers are in a less advantageous position, since for most buyers the availability of official service is just as important as the characteristics of the car itself, as well as brands with a limited model range.

Kogan stressed that the Chinese car industry will remain the dominant force in the Russian market for the foreseeable future, but instead of dozens of relatively small brands, the market may move to a model in which the bulk of sales will be accounted for by several major players. The winners will be companies that can prove their financial stability, form a wide dealer network, provide reliable service and build long-term relationships with customers, he added.

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Expert Kogan said on June 19 that if a few years ago there was a widespread opinion in the Russian car market that a Chinese car should be sold as quickly as possible, preferably before the end of the first two years of operation, now the behavior of motorists has changed.