Damaged "Tanks": sales of premium cars from China are falling in Russia
Sales of Chinese premium segment cars show a significantly larger decline than the car market as a whole. Against this background, the premium and luxury brands of European brands supplied through alternative channels are showing steady growth, and in a number of models they are even ahead of the official "Chinese". Details can be found in the Izvestia article.
Below the market
From January to July, the overall decline in new car sales, according to the analytical agency Autostat, amounted to 23.9% compared to the same period of the previous year. At the same time, according to data on the registration of new cars for seven months, which was provided by the agency Autostat-Info at the request of Izvestia, sales of premium Chinese cars in the Russian Federation decreased significantly more than the market average.
For example, the Lixiang brand saw a 55.3% decrease, Exeed car sales decreased by 57.5%, and Zeekr luxury electric vehicles sold 64.7% less from January to July than a year earlier. Other Chinese premium brands have a slightly better, but still difficult situation. Voyah lost 43.2%, while Tank's decline was 38.6%. Only Hongqi (+6.9%), as well as hybrid brands Wey (+291.6%) and Aito Seres (+65.7%) showed positive dynamics. The last two, despite the update of the model range, were able to sell over a thousand cars each.
Against this background (in relative terms), premium and luxury "Europeans" supplied through alternative channels show good results. Thus, sales of Mercedes-Benz cars increased by 2.1% in seven months, BMW improved last year's result by 3.2%, Land Rover "grew" by 17.6%, Bentley — by 18.6%. Sales of Ferrari sports cars increased by 21.7%, and luxury Rolls-Royce models — by 64.9%.
Of course, in some cases sales in this segment number in the hundreds, while for Chinese brands we are talking about thousands of cars sold. However, for example, BMW with 6667 cars sold in seven months surpassed Lixiang, whose models sold 6,133 units.
An even more interesting picture is formed if we compare the sales results of models that are similar in their characteristics and consumer qualities. So, since the beginning of the year, 776 Tank 700 cars have been purchased in our country, which are popularly called "Landwagens" from China. At the same time, the "original" Mercedes-Benz G-Class found 972 owners in our country during the same period. The Hongqi E-HS9 SUV, nicknamed the "Chinese Rolls-Royce," sold almost twice as badly as the Rolls-Royce Sullinan — 58 units versus 90.
For some Chinese premium models, the decline in sales cannot be described as anything but dramatic. Thus, sales of the Tank 500 fell almost twice over the year (3,062 cars in seven months of this year, against 6,057 in the same period a year earlier), and the picture is similar with the Tapk 300 (4,847 versus 9,632 cars). And demand for the Exeed VX has collapsed fivefold over the year — 1,051 cars sold this year, instead of 5,242 last year.
Different courses, different buyers
If last year, due to the exchange rate, the price difference between European and Chinese brands was enormous, now that the ruble has strengthened, it has become more comfortable, said Nikolai Ivanov, director of the new car department at Rolf. According to him, now the Tank 700 in the Edition One version costs 12-13 million rubles. For this amount, you can buy a new BMW X5 imported from Europe, which used to cost 16-17 million rubles.
The European segment, along with luxury, is growing due to the low euro exchange rate compared to last year, said Renat Tyukteev, Deputy General Director for New Car Sales at Avilon AG.
"Prices in rubles have become more attractive, and despite the greater distance from the Chinese premium, European models and the target group are more stable, and consumers still have confidence in well—known brands," he explained.
The Chinese premium, primarily the Tank and Exeed brands, has been pushing up prices all last year and half of this year, which has not found support from the buyer, said Renat Tyukteev. Voyah worked with the price more carefully and rose in price more slowly. He predicts that prices for Tank and Exeed may decrease slightly, and this will help increase sales.
The Voyah press service explained to Izvestia that a significant difference in sales results from last year was caused by the fact that in January-March 2024, cars of the brand were actively imported into our country according to unofficial schemes from the countries of the Customs Union, mainly from Kyrgyzstan, and were sold at low prices.
Maxim Kaadakov, editor-in-chief of Za Rulem magazine, is convinced that the European and Chinese premium segment of cars have completely different buyers. In his opinion, premium "Chinese" are bought primarily by the middle class, whose share is gradually decreasing, which leads to a decrease in sales of these cars.
— Buyers of European premium and luxury goods are people with high and ultra—high incomes. Most often, this is far from the only car in the garage. First of all, status is important here, so a conditional Mercedes is being purchased, and the Chinese model is not considered in principle," Kadakov said.
Igor Morzharetto, partner of the analytical agency Autostat, shares a similar point of view. According to him, the question "Should I get a Tank or a G-Class" is not even worth it for such a buyer.
— If a person intends to buy a Volkswagen, then he will purchase it — in principle, he will not even consider the Chinese equivalent. And the question of price is secondary here: the habits of such a buyer, his status, and standard of living come first. If a person has been driving a Mercedes-Benz for a long time, he will buy himself a new Mercedes, no matter how much it costs," Igor Morzharetto told Izvestia.
Another factor contributing to the growth in sales of European premium models, the expert calls a more understandable and predictable reduction in the residual price of such machines. According to him, when buying a "European" for a conditional 20 million rubles, the owner understands that in 2-3 years he will be able to sell it for 15-16 million rubles.
— There is no such understanding with the "Chinese" yet. Moreover, according to various sources, some premium brands from China lose up to 40% in price in a couple of years, which is a lot compared to the "Europeans," he noted.
Social marker and forbidden fruit
Nikita Kolesnikov, a representative of the Japanese export company HSS in the Russian Federation, believes that the main discrepancy in the dynamics of sales of Chinese and European cars of the premium and luxury segments is due to the fundamental difference in the perception of brands by customers and the nature of demand in the current economic conditions. According to him, the key factor is the status component and the historically formed image of brands.
— European brands such as Mercedes-Benz, BMW, Bentley or Land Rover have been associated with unconditional luxury, success and belonging to the global elite for decades. For their buyer, a car is primarily a powerful social marker, a symbol of the position they have achieved. Even purchased through unofficial channels, these cars retain their exceptional ability to signal the status of the owner," Nikita Kolesnikov emphasized in an interview with Izvestia.
Chinese premium brands, despite impressive technological achievements, high-quality finishes and aggressive promotion, have not yet been able to achieve a comparable level of unconditional recognition as a symbol of the highest class in the minds of the main part of the target audience. They are not perceived as a full-fledged alternative to European luxury, he notes.
In addition, the unofficial status of European premium supplies has even increased its attractiveness to a certain range of customers. The effect of "forbidden fruit" and exclusivity has emerged, the expert believes.
— Established supply chains and service support (albeit unofficial) have reduced risks in the eyes of customers. At the same time, for Chinese premium brands that are officially presented, some consumers still have stereotypical concerns about long—term reliability and, critically for premium, a catastrophic drop in residual value, which scares them away even despite the availability of guarantees," Nikita Kolesnikov added.
The chimney is lower, the smoke is thinner
An important factor is that Chinese and European automakers understand the very concept of "premium" differently, Igor Morzharetto emphasizes. Some premium cars from China are essentially mass—produced models, but in a more beautiful "package".
— In some cases, they are absolutely identical from a technical point of view, a set of some functions. Yes, they may have a brighter design, slightly better finishing materials. But in fact, these are identical cars, and you have to pay significantly more for one of them," he said.
In addition, many potential consumers are deterred by minor but annoying technical problems, the expert believes.
— I recently drove a premium Chinese car with a mileage of about 10,000 kilometers. Some of the adjustments in one of the rear passenger seats are no longer functional, and wireless charging for the phone works every other time... For a mass model, this may be uncritical, although it is unpleasant. But for a premium car, this is very significant," Igor Morzharetto told Izvestia.
The "Chinese" have become more frequent
According to the international franchise network of car service Fit Service, the total number of arrivals at ONE HUNDRED premium Chinese brands this year increased by 181% compared to last year.
— We also analyzed the frequency of visits (the number of car arrivals per customer per year) of Chinese premium cars over the past two years. Here we see a slight increase in the indicator — on average, owners of Chinese premium cars began to visit car service stations more often. If in 2024 there were 1.26 visits per year per client, then in 2025 there were already 1.38. In other words, the return rate increased by 10% for all premium brands," Nikita Rodionov, Technical director of Fit Service, told Izvestia.
According to him, the difficulties with rare spare parts and body parts for the Chinese premium still remain. Even if there are official dealers of these brands on the market, car owners may face long waiting times for the necessary spare parts.
— In our practice, there have been cases when the wait reached 3-6 months if a rare spare part for a rare brand was needed. The availability of spare parts catalogs and manuals is also gradually improving, but not for all brands. For example, the popular Voyah, Zeekr, and Tank models have catalogs and manuals. There are no such technical documents on the rest of the premium. When ordering the necessary part, something completely different often arrives. Chinese automakers do not maintain proper maintenance and do not update spare parts catalogs in case of modification of the car design," Nikita Rodionov said.
Temporary difficulties
Despite the current difficulties in the premium segment, it is premature to talk about the long-term problems of the Chinese car industry in Russia, says Irina Frank, CEO of Frank Auto.
—The decline in sales of premium Chinese brands in the first 7 months of 2025 is rather a reflection of the specifics of the current economic situation and the perception of the ultra—premium segment," she believes.
Many Chinese "premiums" offer a level of equipment and innovation that is not available in their price range from traditional players even until 2022, Irina Frank recalls.
She explains the current situation in the premium segment by the narrowing of the circle of buyers due to economic factors. Consumers for whom brand status is a priority may temporarily shift towards European brands, she believes. At the same time, Chinese premium brands are targeting a more pragmatic audience - those who value advanced technology, long—term warranty and the official presence of the brand in the country. It is this audience that will expand as the economy strengthens, the CEO of Frank Auto is confident.
— The brand's history has been building for years, and Chinese companies understand this task. We are already seeing how brands like Zeekr or Li Auto are gaining recognition in Europe and other developed markets, which will inevitably affect the perception in Russia," she said.
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