Over 200 Chinese Companies Shut Down in Russia

In just the first three months of 2025, more than 210 Chinese car dealerships in Russia have shut down—three times more than during the same period last year, according to data from Gazprombank Autoleasing reported by TASS.

The closures signal mounting strain on what many analysts now consider an oversaturated segment, where too many dealerships are competing in a limited consumer market.

Brands like Bestune, Kaiyi, and DFM were hit hardest in the first quarter, losing dozens of outlets. Even stronger players such as Geely, Jaecoo, Jetour, and LiAuto appeared in the top 10 for dealership shutdowns for the first time.

Investor Confidence Drops, Market Hits Saturation Point

“Unlike the previous two years, in the first quarter, Chinese dealerships began to actively lose investors,” noted Gazprombank Autoleasing, pointing to a widespread pullback in confidence from local auto investors.

If the current trend continues, 2025 may set a record for dealership closures.

At this rate, the total number of active Chinese showrooms in Russia could fall below 4,000—erasing recent gains made after Western brands vacated the market.

Although the Chinese auto sector still holds an enormous share in Russia, investor interest is now sharply divided between established brands and newer entrants. While Chery, Geely, and Changan remain dominant—with over 600 showrooms combined—the less-known brands like Livan, SWM, and Foton are seeing declining interest from both dealers and buyers.

Uniform Cars, Fierce Competition

According to Za Rulem magazine’s editor-in-chief Maxim Kadakov, the market’s core issue is simple: too many Chinese brands offering too little differentiation.

“There are too many Chinese showrooms open. The market does not need so many,” he said, adding that many of these brands produce cars with nearly identical technology, price points, and design, resulting in a crowded and repetitive market landscape.

That sentiment is echoed by dealers, including Nikolai Ivanov of Rolf Group, who highlighted that most Chinese cars fall into the 2–3 million ruble price segment, where the fight for consumer attention is particularly intense.

China’s Dominance Faces a Reality Check

China’s presence in the Russian auto market is still formidable.

At the end of 2024, Chinese brands made up nearly 68% of all new cars sold in Russia, according to Avito Auto. Seven Chinese automakers ranked in the top 10 for new car sales, with Haval (12.08%), Chery (10.07%), and Geely (9.8%) leading the pack.

In total, Chinese cars accounted for 47.35% of new vehicle sales in the country.