Cars from Asia, Africa and the Middle East are for sale in Russia

According to a Russian Chamber of Commerce and Industry report new car brands, including those from Iran and India, may soon enter the Russian market. African producers have also expressed interest, but China remains the dominant player. This article questions whether these new brands can compete with the Chinese auto industry and win over Russian buyers.

It also discusses what types of cars can be expected from India, Iran, and Uganda.
Amidst growing sanctions against Russia, China has taken advantage of the situation and made significant inroads into various sectors, particularly the domestic automobile market. By the end of 2023, Chinese automakers had sold over 550,000 cars in the Russian Federation, capturing 50% of the market share. Popular Chinese brands such as Chery, Haval, and Geely were among the top sellers. According to Sergei Katyrin, President of the Russian Chamber of Commerce and Industry, only 15% of total sales in Russia are from foreign brands that are familiar to Russians from the USA, Europe, Japan and South Korea. In addition to this, Chinese car manufacturers such as Changan, Chery and Haval have ambitious plans to sell almost 600 thousand cars in Russia by 2024. It is worth noting that other automakers from different countries are also interested in the Russian market.

Sergei Katyrin suggests that Indian automakers could establish themselves in the budget segment of the domestic car market. Tata Motors' crossovers are a promising model for sale in the Russian Federation. It is worth noting that Tata Motors also owns British car brands such as Jaguar, Land Rover, Daimler, Rover and Lanchester. Last year, sales of Iranian cars through parallel import began, including sedans from Iran Khodro (IKCO). Saipa, another manufacturer, announced at the end of 2023 that it may soon sell its cars in Russia.
Currently, it is unclear whether Indian car manufacturers will sell their cars in the Russian market. However, Indian companies producing various auto parts have expressed interest in collaborating with the Russian Federation, according to a source in the Indian government who spoke to Izvestia. It is worth noting that Iranian-made cars are already available for purchase. The Tara model, manufactured by Iran Khodro, is available with a manual transmission for 1.5 million rubles and with an automatic transmission for 1.7 million rubles. In December, it was announced that the vehicle type had been approved for Saipa cars, including the Quik cross-hatchback and the Saina S sedan. The approximate cost of these models ranges from 1.2 million to 1.7 million rubles. They are expected to be among the most affordable cars in Russia, competing with Lada.
Sergei Katyrin believes that cars from Africa may soon follow Iranian cars in Russia. The Ambassador of Uganda to Russia, Moses Kizige, previously highlighted that Uganda is a leader in electric vehicle production on the continent. Kiira Motors Corporation, a state-owned company, is responsible for the development and production of these models. In October 2022, Kizige expressed Uganda's interest in supplying cars to Russia.

The ambassador mentioned that the country is willing to collaborate with Russian automakers and cited the agreement with KamAZ to construct a plant in Uganda for producing trucks for the African market. He also stated that entering the Russian market is relevant in 2024, but he is uncertain about the specific dates.

'There are always opportunities,' he added.
According to Parminder Katongole Singh, deputy chairman of Uganda's ruling Marwaha Party, Uganda is keen to enter the Russian car market. This presents an excellent opportunity for the country to establish partnerships with the Russian Federation.

In general, African countries remain interested in jointly assembling cars. In May 2023, Leon Dodonu-Punagaza, the Ambassador of the Central African Republic to the Russian Federation, expressed interest in assembling certain UAZ models, such as the UAZ “Patriot”, in the Central African Republic. On February 16, Albert Yaloke Mokpeme, the press secretary of the President of the Republic, informed Izvestia that the possibility of a joint assembly was still under discussion. To implement the idea, technical specialists and experts must combine their efforts.

Will new car brands have a future in Russia?
Currently, the Russian car market has official representation from several foreign brands, including Dongfeng, Changan, Exeed, GAC, Foton, Omoda, Chery, Geely, Haval, JAC and FAW, all of which are Chinese. Experts suggest that China's high-tech production is making it a popular choice, while automakers from India or Iran, which may be exotic to Russian buyers, still lack this capability.

Technical regulations in the Russian Federation are stricter than in Germany, and not all Chinese brands are able to meet these requirements. Due to their highly technological production, Chinese companies are able to make adjustments to designs and meet all requirements. It is worth noting that India also has a well-developed automobile industry in terms of both volume and quality. Anton Shaparin, Vice President of the National Automobile Union (NAU), stated that he drove an Indian-made model that was no worse than the Lada Granta. He also mentioned that Iranian cars are quite similar to our domestic cars.
However, some experts believe that India may have the potential to establish itself in the Russian market, particularly in the economy-class car segment, which is currently non-existent in Russia. It is important to note that this would require a significant amount of time for adaptation.

However, some experts believe that India may have the potential to establish itself in the Russian market, particularly in the economy-class car segment, which is currently non-existent in Russia. According to retired traffic police major and automobile expert Viktor Kondrashin, Tata Motors models could fill this gap if they are produced and localized in Russia. However, it is unlikely that electric cars from Uganda will gain popularity here. This is because such models have only recently started to become popular in Russia.
Meanwhile, the specialist notes that there is still a high demand for well-known foreign brands such as Kia, Hyundai, Renault, and Volkswagen. These brands are currently being supplied through parallel imports, resulting in a significant increase in their prices. Dealers mainly import premium and luxury brands on request, such as Mercedes-Benz and BMW, according to Kondrashin. Irina Frank, Managing Director of Frank Auto, highlights that Russian car enthusiasts remain relatively conservative.

Many Russians are more familiar with seeing a well-known brand on a car. Cars from India, Iran, and Uganda are unlikely to interest the general consumer, at least in the near future. For instance, it took approximately 20 years for Chinese cars to gain credibility in the country. Nowadays, they no longer cause bewilderment as they did before when they were considered 'soap boxes'. Automakers from China have started offering competitive products, particularly in the electric car market.
In general, the Russian economy is experiencing a shift towards the East due to sanctions. As a result, new opportunities are emerging in various sectors. Currently, trade with Asian countries accounts for almost 70% of turnover. The President of the Russian Chamber of Commerce and Industry predicts that this trend will continue in the medium term.