Russia’s auto imports from China face payment blockages; China’s role in supply and future production

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Russia faces ongoing disruptions in vehicle supply and spare parts from China as payment restrictions come into play, a situation highlighted during a press briefing by Alexey Podshchekoldin, head of the Russian Automobile Dealers Association (ROAD). The core issue centers on banking blocks and payment delays that slow or stall transactions, affecting retailers, service networks, and end users across the country. In his remarks, Podshchekoldin explained the practical impact: money is either circulating within constrained channels or returning to its origin, leaving suppliers uncertain about cash flow and delivery timelines. The broader concern is that such bottlenecks push the overall pace of imports, with downstream effects on inventories and customer access to models and parts. According to ROAD, the friction in international payments is not isolated to a single company; it reverberates through the distribution system and can ripple into aftersales support and warranty services where timely parts are essential. [CITATION: ROAD]

Podshchekoldin further noted that the United States has leveraged pressure on China to suspend certain payment arrangements. This dynamic has created additional headwinds for Russian buyers seeking timely shipments of vehicles and components, potentially elongating lead times and complicating planning for dealerships and maintenance centers. The consequence, as observers warn, is a deceleration in supply chains that previously moved smoothly through standard banking channels. Stakeholders are watching currency and settlement flows closely, as even short delays can accumulate into larger backlogs for new car deliveries and parts replenishment. [CITATION: ROAD]

Data from June 2024 shows a clear pattern in imports: among new passenger cars entering Russia, Chinese brands dominated the landscape. Chery Tiggo Pro Max crossovers led the import slate, signaling a notable shift in consumer demand toward Chinese models. In this period, the country welcomed approximately 69.4 thousand new passenger cars from various manufacturers, underscoring the significant weight of imports in the Russian market and the critical role of reliable payment practices in sustaining those volumes. The trend suggests that, with payment complexities in place, the market could experience more pronounced fluctuations in the availability of popular foreign models and the broader mix of imported vehicles. [CITATION: ROAD]

Looking ahead, industry observers are asking when manufacturing and assembly plans for certain models will resume consistent production within Russia. For instance, attention is directed toward Sollers ST8, a model whose domestic production schedule has faced questions amid the broader supply and financial constraints in the sector. As the domestic auto industry balances foreign dependence with local capabilities, payments, sanctions-related policies, and supplier relationships will continue to shape the tempo of production and the cadence of new arrivals on dealer lots. Analysts emphasize that stable financial channels are essential to sustaining both manufacturing activity and the aftersales ecosystem that keeps vehicles on the road. [CITATION: ROAD]

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