Chinese Brands Capture Over 50% of Russia's Auto Market as Localization Accelerates

In June 2026, Russia’s auto sales reached 122,000 units, up 22% year-on-year; total sales for the first half of the year amounted to 660,000 units, an increase of 10% year-on-year. Chinese independent brands held a 54.9% market share in Russia that month, with their overall share for the first half reaching 54.6%. In June, China exported 84,400 vehicles to Russia, while local sales of Chinese independent brands totaled 67,000 units. For the first half of the year, China’s total vehicle exports to Russia reached 448,000 units, with local sales by Chinese independent brands amounting to 360,000 units. Chery’s average monthly sales in Russia neared 20,000 units. Geely and its affiliated brands, including Zeekr, saw significant growth, while BAIC also delivered strong performance. Among new energy vehicles (NEVs), Changan, Zeekr, and Voyah led in sales, while Aito, BYD, and Xiaomi also achieved notable market presence. Range-extended and plug-in hybrid electric vehicles have effectively filled the market gap left by the exit of European and American luxury brands. Starting in 2026, Russia raised its value-added tax (VAT) rate to 22% and increased the recycling fee to approximately 800,000–900,000 rubles. Additionally, the “Taxi Localization Law,” effective March 1, 2026, mandates that operational vehicles must achieve a localization score of no less than 3,200 points and prohibits foreign-owned automakers from direct market entry. In response, Chinese automakers have enhanced their localization through KD (knock-down) assembly, establishing regional production bases, and building centralized spare parts warehouses, achieving a core component localization rate exceeding 60%.