Handelsblatt: VW is trying to prevent the supply of its cars from China to Russia

Volkswagen is taking action against the possible export of the company’s cars from China to Russia, reported German newspaper Handelsblatt, citing a VW representative.

A source in corporate circles noted that China and Russia have very close economic ties, including in the automotive business. According to him, “trade routes have been established between the countries”, especially in terms of used cars – now these routes are being used to supply new ones.

The newspaper writes that Volkswagen in China operates “relatively autonomously” from the German office, which facilitates export due to the limited influence of the German side. Geography also helps him.

VW Group Handelsblatt said that “exports to the gray market cannot be ruled out,” but there is no evidence that car shipments from China to Russia are carried out on a large scale. Volkswagen’s office in Beijing said the company is blacklisting car dealers that may be involved in exports, and cars will not be supplied to them.

Problems with the assembly of foreign cars and the supply of components began in Russia against the backdrop of a special operation in Ukraine and the imposition of sanctions by Western countries against the Russian Federation. In this regard, foreign automakers announced the suspension of car deliveries and production at factories in the country. In particular, this decision was made by Renault, ToyotaBMW, Nissan, VAG (Volkswagen, Porsche, Audi, Skoda, etc.) and other companies.

In December 2022, Izvestia, citing market participants, reported that no more than 20,000-30,000 new foreign cars remained in Russia, which would be enough for just a month of sales. Vice President of the Association of Russian Automobile Dealers (ROAD) Alexey Podshchekoldin then specified that car dealers had practically no models of the middle price category left, including Kia, Hyundai, Toyota, Renault, Volkswagen. According to him, since the beginning of 2022, 45 automotive brands have left the Russian market. In total, only 14 manufacturers remained in Russia, 3 of which are domestic and 11 are Chinese.

The Association of European Businesses (AEB) reported in January that in 2022 sales of new passenger cars and light commercial vehicles (LCV) in Russia amounted to 687,370 units, which is 58.8% less than in 2021.

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