VGV Enters the Russian Market Through Sinotruck Alliance
The VGV brand, short for Victory Go Victory, is backed by Sinotruck, a major state-owned Chinese truck manufacturer. In a strategic move, VGV is set to debut at Maximum car dealers in St. Petersburg during the third quarter of 2023, following a exclusive distribution agreement signed with Vadim Arustamyan, the proprietor of the dealerships network. This partnership marks a notable expansion for Sinotruck into the passenger car segment within Russia, leveraging its established footprint in commercial vehicles and related components.
By the close of 2023, the distributor aims to import 2,000 VGV vehicles into Russia. The rollout is planned not only for St. Petersburg but also to expand into Moscow and several other major metropolitan areas, signaling a broad national strategy to capture demand across the country’s largest urban centers. The plan indicates a gradual build-up of sales channels and aftersales support tailored to the Russian market, with a focus on brand recognition and service network readiness.
In line with the rollout, the distributor has laid out a multi-year growth trajectory. The expectation for 2024 is to reach a volume of 6,000 units, followed by a medium-term goal of achieving annual sales of 50,000 vehicles within five years. These figures reflect ambitious market penetration targets and a commitment to scale the VGV brand in Russia through a controlled, phased approach.
The initial product plan centers on two D-class SUVs, the U70 Pro and the U75 Plus, with an emphasis on robust chassis and rear-to-front propulsion that aligns with commercial-utility expectations. Beginning October 1, a four-wheel-drive pick-up frame model with a diesel engine will join the lineup, expanding the brand’s capabilities for demanding road conditions and professional use. From January 1, the portfolio will introduce an E-class SUV featuring a diesel engine, a load-bearing body architecture, and all-wheel drive to address larger vehicle needs in urban and regional markets. By February 2024, a light commercial vehicle (LCV) category will appear, including minibuses and commercial vans, with a dedicated SUV C variant slated for early 2025. This staged introduction supports customer familiarization while facilitating regulatory and logistical readiness across distribution hubs.
The distributor has indicated price flexibility, with one of the models expected to be priced up to 2 million rubles. Pricing for other variants will depend on currency exchange movements and market conditions, suggesting pricing that can respond to macroeconomic shifts while maintaining competitive positioning in the segment. The plan underscores a responsive pricing strategy intended to balance affordability with perceived value among fleet operators and private buyers alike.
Additionally, the Russian team has secured exclusive rights to sell and import FGM car parts within Russia, reinforcing the aftersales and parts supply infrastructure required to support a growing VGV customer base. A robust parts distribution arrangement is critical for building trust with customers and ensuring uptime for both individual buyers and fleet operators.
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The VGV brand is owned by the Chinese state-owned company Sinotruck (CNHTC), one of the country’s largest truck manufacturers. The company was founded in 1956. In Russia, the car group is best known for trucks under the Howo and Sinotruk brands. The passenger car line VGV was created in 2019, signaling a strategic pivot toward diversified vehicle offerings beyond heavy-duty trucks.
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