Chinese Automotive Companies Entering the Russian Market

The implementation of economic sanctions against Russia has led to a massive withdrawal of Western companies from the Russian market, creating favorable opportunities for the expansion of Chinese automotive companies. The research aims to identify the peculiarities of the expansion of Chinese car manufacturers entering the Russian car market. According to the market analysis, as of Q1 2024, 69% of all large Chinese automotive multinational corporations (MNCs) (43 companies) are present in Russia. The authors developed a classification that divides Chinese MNCs by the ways they enter the Russian market. Based on the data analysis, most Chinese MNCs enter the market through indirect exports. Simultaneously, foreign direct investment is the most important method for Chinese companies to gain a foothold in the Russian automotive market. Companies that entered the market with foreign direct investment have a wide dealer network and manufacture their autos using joint ventures. The authors believe that digitalization and popularization of electric cars could become important factors in developing the Russian automotive industry. © 2025 Elsevier B.V., All rights reserved.