Chinese automaker Chery Automobile has announced its intention to exit the Russian market in order to go public on the Hong Kong Stock Exchange and raise US$1.2 billion.

Source: The Moscow Times citing Nikkei

Details: The funds raised will be used to expand Chery’s lineup of electric and hybrid vehicles. In total, Chery plans to release more than eight new models. Another 20% of the proceeds will go toward international expansion.

Russia is Chery’s second-largest market after China.

The company clarified that it decided to scale back operations in Russia in order to “ensure compliance with sanctions and export controls”.

In 2024, one in every five cars sold in Russia belonged to the Chery brand. In total, nearly 325,200 vehicles were sold.

Russia accounted for 25.5% of Chery’s total revenue in 2024, and 17.7% in 2023. Chery has 372 dealership outlets and 687 showrooms in Russia.

Chery has already begun winding down its presence in Russia: in April, its subsidiary, operating in the country since 2005, signed agreements to transfer assets to three unnamed companies.

The group plans to “gradually reduce the number of brands and sales channels”, after which Russia’s contribution to revenue will become “insignificant”. The exit is expected to be fully completed by 2027.

Gregor Sebastian, a senior analyst at Rhodium Group, called Chery’s decision “a major turnaround”. He said that it was driven both by Western sanctions and by new disposal fees imposed by Moscow on imported vehicles.

Since the Chinese company does not assemble cars in Russia, the new tariffs make the local business unprofitable, making it more advantageous for Chery to sell vehicles in the European Union, the expert noted.

In Sebastian’s view, the decision to leave the Russian market is “wise and will pay off” in the long term.

Background: In the first half of 2025, only about 20 new foreign car models appeared on the Russian market – five times fewer than in the same period in 2024.

Support Ukrainska Pravda on Patreon!

From Ukrainska Pravda via this RSS feed