Chery exits Russia due to sanctions and recycling fees / Depositphotos
The Chinese vehicle manufacturer, Chery Automobile, has revealed intentions for a phased departure from the Russian territory, which previously held the position of second-largest market following China. In the ongoing year 2024, Russia constituted 25.5% of the company’s overall income, in contrast to the 17.7% recorded in 2023.
This information is provided by Delo.ua, referencing data from Nikkei Asia.
In the preceding year, the number of vehicles sold under the Chery, Exeed, Omoda, and Jaecoo labels in the Russian Federation exceeded 325,000.
Even with a network of 372 dealerships and 687 showrooms, the organization has commenced reducing its activities: in April 2025, its branch conveyed assets to three undisclosed entities. Chery is aiming to diminish its footprint in Russia by 2027, progressively lessening the quantity of brands and distribution routes.
The factors influencing this choice encompass sanctions, novel recycling levies on imported automobiles within Russia, and the absence of domestic manufacturing, rendering the company’s operations unprofitable. Rhodium Group analyst, Gregor Sebastian, characterizes the exit as a “radical U-turn” while deeming it prudent for the extended period.
Simultaneously, Chery is gearing up for a stock listing on the Hong Kong Stock Exchange with the goal of securing $1.2 billion for advancements in electric and hybrid vehicles, launching more than eight fresh models, and intensifying its push into international markets.
Furthermore, Chery Auto intends to allocate billions of euros to guarantee the triumph of its Omoda and Jaecoo trademarks in the European marketplace during the coming three years.
