The China Association of Automobile Manufacturers has advised Chinese automakers to pursue a strategy that could boost vehicle shipments to Russia while maintaining revenue levels. The plan envisions a marked drop in the final price of cars, coupled with a sales model that preserves the earnings stream of dealerships and distributors. In essence, it aims to unlock greater sales volume without eroding the profitability that partners rely on.
According to information circulated by the Chinese Automobiles Telegram channel, the association sent a formal letter to Chinese automakers detailing this approach. The message emphasizes the domestic demand within the Russian market and the current lack of viable alternatives for Chinese manufacturers, arguing that online channels can be leveraged to maximize profit without sacrificing margins for intermediary partners. The letter frames online sales as a strategic lever to expand market share while still protecting the dealer network and its revenue streams.
The expected outcome is that Chinese brands could be listed online for Russian customers without the additional markup typically added by middlemen and retail outlets. Over time, this online channel is projected to grow into the central avenue for Chinese-built cars in Russia, reshaping the traditional model of dealership-based distribution and potentially reducing the time from order to delivery for buyers who prefer digital purchasing options.
Two years ago, Hyundai explored a parallel online selling initiative, but the undertaking did not meet expectations at the time. The current market environment differs, with greater online shopping adoption and evolving consumer preferences, which could create a more favorable setting for the new model proposed by the China Association of Automobile Manufacturers. The initiative is being developed with attention to regulatory alignment, logistics, and the consumer protections that accompany online auto purchases, all aimed at delivering a smooth and transparent buying experience for Russian customers.
Conversations about securing local partners for this new sales framework are already underway. In particular, discussions are prioritizing collaborations with financial institutions and information technology companies. The involvement of banks is viewed as essential to financing options that make online car purchases viable for a wider segment of buyers, while IT firms could play a crucial role in creating a robust, user-friendly digital storefront, secure transaction processing, and seamless after-sales support. The overall objective is to merge digital innovation with traditional automotive know-how to create a scalable, compliant, and trustworthy purchasing pathway for Chinese brands entering the Russian market.