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29% Slump in Russian Auto Market in January While Lifan Sales Greatly Increased 63%


On February 11, according to the news of Russia's "satellite" newsnet, the Russian market sales fell 29.1% year-on-year in January which just sold 81,849 vehicles. The sales volume has already dropped below 100,000. In the Russian auto market which has a substantial depression, only few car companies rallied including Lifan. Lifan car sales increaed 63% year-on-year during the same month.

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From the point of view of the field, the reasons that make Lifan can dominate in the Russian market competition are the investment of self-building dealer network and the investment of final assembly base. However, not every enterprise has made the same choice as Lifan.As learned, due to the continuing decline of the Rouble, Chinese car companies use dollars in export of Russia, which results in the rising of terminal price. In addition, the tax rate is higher for importing CBU in Russia, now the tax rate for imports of new car is 25% in Russia. To a certain extent, this pushed up the Chinese Auto selling prices in Russia. However, the low prices has been considered as the major competitive advantage for China Auto selling overseas. In this case, local production becomes an important way to solve such problem.

"Lifan has been the Chinese Brand Champions in Russia for cumulative years." the executive deputy general manager of Lifan import and Export Company Wang Juhui said to the Daily Economic News" reporter. And the Lifan network in Russia is built on its own. "We have set up the direct sales company in Russia which has more than 150 dealers now." Wang Juhui told the "daily economic news" reporter that this number of dealers tops all the Chinese auto enterprises.