Geely and Changan Lost 177 Million Euros in Russia as Global Business Keeps Growing
Geely and Changan posted a combined loss of about 177 million euros in Russia in 2025. Their local operations were hit by expensive credit, weak demand, high inventory levels and import tariffs known there as a recycling fee. Their global business, however, remains much stronger.
Russian market turns costly for Chinese carmakers
According to Russian media, Geely posted a loss of about 70 million euros in Russia, even though it made a profit of roughly 17 million euros there a year earlier. Changan's loss reached about 107 million euros. In addition, Changan had to direct at least 113 million euros to subsidising car loans in order to maintain sales in a high interest rate environment.
This shows that the Russian business of Chinese car brands is suffering from more than weaker demand alone. The problem is broader: cars are sitting in warehouses, financing is expensive, and price pressure is forcing manufacturers and importers to sacrifice margins.
Haval halts production, but the reason remains disputed
Haval's plant in Tula will pause for two weeks from 20 July. Some Russian sources link the stoppage to falling demand and full warehouses. Haval itself describes it as a routine technical maintenance break. The fact is that production will pause. The claim that weak sales are the direct cause remains disputed across sources. Still, the market context supports a cautious conclusion: Russia's car market is no longer growing at the same pace seen after Western manufacturers left.
AGR and Evolute move in the opposite direction
Not every Chinese-backed project in Russia is slowing down. AGR, which operates in Kaluga and is linked to Tenet and Chery production, is increasing output, working two shifts and preparing for a third. The company wants to raise annual volume from 120,000 cars to 150,000 and hire about 1,000 more workers.
At the same time, Evolute is restoring production in Lipetsk after a fire and is not planning a production break. The company says it will reach full capacity within the next six months.
Global picture is stronger than Russia
The losses in Russia do not mean Chinese manufacturers are weakening internationally.
In 2025, Geely sold 3.02 million vehicles, increased revenue to about 42 billion euros and earned a net profit of roughly 2 billion euros. Changan sold 2.91 million vehicles, generated about 19.9 billion euros in revenue and nearly 495 million euros in net profit.
Great Wall Motor, which includes Haval, sold 1.32 million vehicles, posted about 27.1 billion euros in revenue and roughly 1.2 billion euros in net profit. Chery also showed strong growth, with 2.63 million vehicles sold, about 36.5 billion euros in revenue and roughly 2.37 billion euros in net profit.
Russia is no longer an easy growth market
The first growth phase for Chinese carmakers in Russia was based on the market opening up after Western rivals withdrew. In 2025, the situation changed: demand cooled, inventory grew, and sales had to be supported with discounts and credit subsidies.
The facts suggest that Russia has shifted from a growth market to a margin test for Chinese automakers. Those holding up better are the companies with local production, deeper localisation and controlled inventory. Importers that rely on expensive financing and promotional campaigns are under greater pressure.
