At a time when many western companies have quit Russia after Ukraine invasion, Chinese companies are planning to expand operations in Russia according to the latest reports. Chinese car maker Chery is in talks with Russian manufacturers about producing cars in Russian plants. Cherry also plans to increase sales from 80000 to 100000 this year as compared to over 21000 cars sold in Russia last year. Chery is an automobile brand of the Chinese state owned company Chery Automobile Co. Ltd. The main product offerings are passenger cars, minivans and SUVs.
Chery is China’s ninth largest vehicle manufacturer with sales of around a million vehicles annually. Russia is world’s eighth largest auto market and already has multiple Russian JV’s with Chinese partners. At a time when many Auto manufacturers are exiting or suspending operations in Russia, Chinese manufacturers are stepping in to broach supply chain gaps and partner with Russians instead. According to the Association of European Business, Chery sold 40,874 vehicles in Russia in 2021.