China's automotive giant Chery expands into the Russian market through strategic assembly.

The Chinese automobile manufacturer Chery has started assembling vehicles in Russia and introducing them to the local market. This is taking place in three factories that were previously utilized by Western companies such as Volkswagen and Mercedes. This development underscores China's growing role in Russia's manufacturing landscape, which has shifted due to the withdrawal of many Western competitors following the invasion of Ukraine. Since their withdrawal, Chinese automobile companies have captured a significant portion of the Russian automobile market. Chery's entry into local production is another sign of Beijing's increasing influence. Chery, which already accounts for about a fifth of car sales in Russia, is completing the assembly of nearly finished vehicles in repurposed factories to meet the demand in the Russian market. As the Russian government increases import duties on imported cars, Chery appears to benefit from the rising local demand with its "semi knocked down" approach. The production of the Tiggo 7 as the "Xcite X-Cross 7" in St. Petersburg is an example of the local adaptation process, which also mirrors the revival of historical brands like Moskvich. Chery is strengthening its presence through extensive assembly of models such as Tiggo and Exeed at sites once operated by Western automotive giants. This strategy aligns with the company's global expansion plans, while the details of production and assembly remain closely guarded to avoid unwanted attention from the West. Chery plans to enter more than 60 new markets in the next three years. The production of models in Russia has been approved by local authorities, although Chery does not intend to purchase or build its own factories. The company remains aligned with its expansion goals and strictly separates its activities in the European and Russian markets. Overall, Chery's strategy reflects a remarkable adaptability characterized by a flexible approach to geopolitical conditions. Despite international tensions, Chery is consistently pursuing its market diversification strategy while maintaining a discreet stance regarding its activities in Russia.