China's commercial vehicles suffered Russian cold winter or give up?

Although it is now a summer heat, Chinese commercial vehicle companies have felt the "chill" of the Russian market.

July 1st will become China's commercial vehicle export to Russia, and if it fails to achieve 55 quality standards, Chinese commercial vehicles cannot be exported to Russia.

The correspondent was also informed that passenger cars and trucks previously produced in China were mostly exported to Russia through small-batch exports (less than 150 vehicles). However, after July 1st, Chinese cars will no longer enjoy the benefits of simplifying procedures, and the preferential treatment for the minimum requirements for passenger cars will also be cancelled.

“The biggest advantage of Chinese cars is the low price. Chinese cars sold in Russia are not as good quality as cars in other countries, and maintenance is very troublesome. In cities far from the capital, it generally takes a few weeks or even months to wait. Get the necessary parts and components,” said a foreign trade official who declined to be named.

Is winter coming?

In 2006 and 2007, Russia became the largest exporter of Chinese automobiles for two consecutive years. Many ambitious Chinese commercial vehicle companies have set ambitious goals for exports to Russia in the coming years.

However, due to the fact that the quality of Chinese automobiles cannot be fully adapted to the requirements of the local market, Russia’s “combination boxing” has made the situation of China’s commercial vehicle exports to Russia even more severe.

Statistics from Manzhouli Customs show that in April, 380 trucks were exported from Manchuria customs area, a decrease of 24.8% from the same period of last year. Manzhouli is just one of the ports for Chinese commercial vehicles to export to the Russian market.

In fact, the poor sales of Chinese cars in Russia are not due to the decline in Russian demand. Statistics show that in the first quarter of 2008, Russia imported 23,500 trucks, an increase of 32.8% year-on-year.

As early as July of last year, the Russian Ministry of Industry and Energy decided to suspend the approval of any production project for assembling Chinese cars in Russia. The four projects reviewed by the Ministry of Economics and Trade on assembling Chinese cars will continue to be delayed in consideration of protecting the domestic automobile industry. .

Yevsikov, a senior Russian Counselor in China, once stated that Russia regulates the import order and will modify the vehicle certification system this summer. The revision will eliminate the possibility of certification for cars produced in countries other than the 1958 Geneva Accord, including China.

"In the future, China's autos must go through all complete certification tests. And for each brand, model, specification of the car only issued a small batch of certification." Yevsikov said.

An official from the Ministry of Commerce said with concern: "The export advantages of commercial vehicles in China have dropped significantly. The Ministry of Commerce has already noticed changes in the Russian market."

Stick or give up?

Russia raises the threshold for imported cars, and the cost and cost of Chinese car manufacturers' exports have increased substantially. With the appreciation of the renminbi, the increase in domestic labor costs, and the soaring prices of raw materials, the spread between Chinese autos and Russian autos has gradually become smaller, and the Chinese companies’ own price advantage is slowly losing.

Many companies also have to face the national III emission standards that were implemented on July 1st in China. Under pressure, some commercial vehicle companies began to look for countries with lower export costs. Unconsciously, Vietnam has become China's largest truck exporter in the first quarter of this year.

“Our main task now is to fight against disasters and try to meet the National III standard. The other things should be put first.” A truck company official said that it is still considering the changes in the Russian market.

"The market demand in Russia is so high that we can no longer export to Russia and we must first withdraw." The person in charge will soon be losing such a large market.

However, the attractiveness of the huge market in Russia still attracted large companies such as China National Heavy Duty Truck, FAW Jiefang and Shaanxi Auto. "We still regard Russia as a strategic market and increase the construction of a service network in Russia," said relevant person in charge of Sinotruk.

"Russia's decision to raise the threshold for imported vehicles may be a good thing and will force Chinese companies to increase their international competitiveness." Liu Keqiang, marketing department of Shaanxi Automobile Group, said Shaanxi Automobile is still seeking opportunities to build factories with Russian local companies.

“In the future, we must take the massive export road, or establish joint factories with local Russian companies.” Zhu Jingcheng, chairman of Xibili Corporation, which has long tracked the Chinese auto exports to Russia, reminded, “If the Chinese auto companies in the Russian market have not yet If the big changes are made, many companies will be forced to withdraw."

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