The Russian automotive industry is recovering, and about 60% of the auto parts market relies on imports

2025-03-12 17:59:35

The revival of the Russian automobile market: a new trend for China's auto parts industry

In the constantly changing global economic landscape, the Russian automotive market is quietly undergoing remarkable changes. Recently, the Russian National Bureau of Statistics released data showing that the production of light vehicles in Russia increased by 213000 units year-on-year in 2024, reaching a total of 756000 units, making it the third largest country in the world in terms of automobile production growth (after China and India).

 

It is not difficult to see that this growth trend is not accidental. Behind this growth is the restructuring of Russia's domestic automotive industry chain and the explosion of import substitution demand.

 

Since the Russia-Ukraine conflict, European, American, Japanese and Korean auto enterprises and parts suppliers have withdrawn in a large scale, and the Russian auto industry chain is facing a serious gap. At present, about 60% of its auto parts market relies on imports, and local component production capacity cannot meet the rapidly growing number of cars (about half of which are over 10 years old). In this way, this gap provides a historic opportunity for Chinese auto parts companies: Russia has become the largest market for Chinese auto and parts exports, with China's auto exports to Russia reaching 15.2 billion US dollars in 2024, a year-on-year increase of 30.5%.

In this wave of development in the Russian automotive market, Chinese auto parts companies have ushered in many core opportunities, which are like progressive steps, helping companies move towards a broader market space.

 

The surge in demand for import substitution: Firstly, it is necessary to mention the key factor of import substitution demand. Russia has a large number of cars, but a high proportion of old vehicles and a strong demand for replacement parts. Taking tires, braking systems, and core engine components as examples, Russia's annual demand gap amounts to billions of dollars. After European and American companies withdrew, Chinese auto parts companies quickly filled the market with high cost-effectiveness and fast supply capabilities. For example, Chinese brake pads, filters, and other vulnerable parts have occupied 45% of the Russian market share.