"Chinese Cars Fuel Russia's Auto Factory Revival"

Chinese carmakers are gaining market share in Russia's auto industry, taking advantage of the departure of Western players due to sanctions and the invasion of Ukraine. 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, as the car now features engine parts and upholstery from China's JAC Motors. The expansion of Chinese carmakers in Russia is seen as beneficial for the country, allowing it to restart production at idle factories and keep workers employed. However, the increasing dependence on importing assembly kits from China means that profits are tied to the yuan exchange rate.