Gao Xiyun, Economic and Commercial Counsellor of the Chinese Embassy in Russia, briefed the reporter on the latest developments in the development of commercial vehicles in Russia.
Reporter: What is the current status of the Russian commercial vehicle market?
Gao Xiyun: According to the latest statistics released by the Russian Federal Statistical Office, in January 2009, industrial production in Russia fell by 16% year-on-year. The largest decline was in the automobile manufacturing industry, in which truck production fell by 76.4% year-on-year, and passenger car production decreased by 83.4% year-on-year. In Russia, the commercial vehicle market is still dominated by Russian production vehicles. At present, there are seven key Russian large-scale automobile production enterprises, of which there are four heavy-duty truck manufacturers, namely, Kamaz, Likhachev, Gorky and Ural Automobile Company. Compared with passenger cars, Russian production cars dominate the commercial vehicle market, especially the truck market. In 2008, the production of Russian domestic brand automobiles reached 37,100 vehicles, which was 4.4% higher than in 2007. From January to September 2008, the number of imported trucks was 113,800, with a value of US$3.9 billion.
In Russia, imported cars are still dominated by European brands. In 2007, sales of European-branded trucks in Russia increased by a factor of two from the same period last year, from 9072 vehicles to 19,464. European brand trucks accounted for more than 80% of the total truckloads imported from Russia.
China’s truck products are the largest in Russia with Sinotruk and FAW Liberation. In 2008, the overall decline in the sales of Chinese cars in Russia was due to the fact that, starting from January 1, 2008, Russia implemented Euro 3 emission standards, while most Chinese automobile manufacturers have not yet obtained the Russian-European 3 quality certification, resulting in Exports dropped sharply.
Reporter: What are the impressions of local Russian users on commercial vehicles in China?
Gao Xiyun: About 40% of Russian consumers expressed their willingness to try Chinese cars. About 50% are skeptical. The rest believes that the quality and maintenance of Chinese cars are completely unresolved.
Reporter: What are the problems with China's commercial vehicle exports to Russia? How to improve?
Gao Xiyun: At present, China's autos have entered Russia with a “long attack and individualism†approach, and various brands have come to the fore. Most companies lack long-term development strategies, and some even “do one and goâ€. The number of Chinese auto brands entering Russia even exceeds the sum of all famous international brands. The negative impressions on Chinese cars in Russia focus on two points: First, they do not understand Chinese car brands and do not understand them; Second, Chinese cars lack proprietary car manufacturing technology and are mostly counterfeited, and many models are still immature. Seriously improve.
At the same time, the poor after-sales service is Russia’s most ardent problem at present. Many Russian consumers have given up their plans to purchase Chinese cars because they are concerned that the after-sales service cannot keep up. This issue has a greater negative impact on China’s advantages in heavy trucks and construction machinery in Russia.
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Russia temporarily increases auto import tariffs
Russian Prime Minister Vladimir Putin signed a resolution document on the temporary increase of auto import tariffs. From January 11th, 2009, import taxes on foreign new cars and old cars less than 3 years have been raised from 25% to 30%, and import taxes on old cars from 3 to 5 years have been increased from 25% to 35%. It is understood that this temporary increase in tariffs involves tractors, trucks and cars. The new tariff is implemented for a period of 9 months. At the same time, the scope of prohibiting tariffs will be expanded from imported second-hand cars with a vehicle age of more than seven years to imported second-hand cars with a vehicle age of more than five years. For imported passenger cars with a vehicle age of less than five years, adopting a different treatment approach, all those who meet the Euro 4 emission standards will be exempted from import duties; if they do not meet the Euro IV emission standards, they will be imposed an import tariff of 25%. For imported second-hand passenger cars over five years old, a tariff of 3 euro/cm3 will be imposed.
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