China's Auto Industry Resurrects Russia's Manufacturing Sector

Chinese carmakers are gaining market share in Russia's auto industry, taking advantage of the departure of Western players. Imported Chinese cars now account for 49% of Russia's market, compared to just 7% in June 2021. Chinese firms are also increasing their sales in Russia by assembling vehicles at factories formerly owned by European, Japanese, and U.S. carmakers. The rebirth of the classic Soviet-era car, the Moskvich, is a sign of China's growing influence, with the car featuring engine parts and upholstery from China's JAC Motors. The expansion of Chinese carmakers in Russia is benefiting the country by restarting production at idled factories and keeping workers employed.