Russians bought 18% fewer Chinese cars in July compared to the same period last year (61,442 vs. 74,578 vehicles). The collapse is even more evident based on the results of the first seven months of 2025: 447,904 in 2024 compared to 326,077 in 2025 (a 27% drop in sales), reports Federal Press, citing data from Avtostat Info.
The decline in the sales of Chinese cars can be explained by a number of factors, according to Alexei Ivanov, owner of the Alliance Trucks commercial vehicle dealership network. One objective factor here is the slowdown in the growth of Russians’ real disposable incomes — by 7% for Q1 2025 and by 8.7% for Q2. After H1, the growth amounted to 7.8% year-on-year while inflation slowed only in the summer and to 8.8% (it exceeded 10% in the spring). The Ministry of Economic Development forecasts annual real income growth of 5.9% (as opposed to 7.3% last year).
Another factor is the smooth shift in demand among the Chinese brands. Alongside a record drop in demand for Geely, Chery, Haval, and Omoda, the new brands in Russia such as Jetour and GAC have sharply increased their sales.
Thirdly, upcoming legislative changes are expected to reshape the market. Starting March 1, 2026, it will be prohibited to use foreign-made cars for taxi services, with the exception of several regions.
“In our view, buyers are anticipating a large-scale arrival of used foreign cars on the open market. High deposit rates also play a role, as they enable people to save more quickly,” the entrepreneur notes.
Another major concern for consumers is the mismatch between price and quality. New vehicles often show signs of corrosion while engine and transmission components require replacement under warranty. According to car dealers, more than half of new owners of Chinese-made cars soon turn to service centers for warranty repairs, and the number of returns continues to grow, Alexei Ivanov stresses.