China’s Golden Run in Russia Grinds to a Halt

For a while, Russia was a goldmine for Chinese carmakers, a booming market where profits rose like dough in a warm kitchen. But that moment appears to be over. According to several Chinese journalists dissecting recent developments, the party has ended—at least for now.

In 2024, Chery sold 44 percent of its cars outside of China, and its most important destination wasn't the United States or Europe—it was Russia. Yet that once-reliable haven is now showing cracks. New taxes, political instability, and scrutiny from Western powers are pushing even titans like Chery to reconsider their footprint. Indeed, Chery has begun quietly scaling back its Russian operations, like a ship steering away from a storm it senses before it strikes.

The Chinese media left out the backroom tactics—rebranding, reshuffling models under new names—but the shift in strategy is clear. The new game plan? Lead with hybrids, and only then roll out electric vehicles.

Chery’s approach diverges from competitors like BYD, but the results speak volumes. Brands like Omoda and Jaecoo, virtually unknown not long ago, have stormed into the European market. In March 2025, Chery sold 3,000 petrol-powered Omoda 5s and 600 electric E5s. Not a bad showing for a company that, until recently, meant nothing to European buyers. Omoda even broke into Europe’s top 50 car brands, overtaking Xpeng, a manufacturer that's been slogging away on the continent for years.

Chinese journalists draw a simple conclusion: Chery is one to watch. If they can establish a foothold in Europe, others would do well to study their playbook. As for Russia, the showrooms remain open, but the cash registers now ring far more softly.