As per the sources, organizations can no longer provide products and services to the Russian market. In fact, the ‘grey products’ supply is not much of a solution when sanctions are strictly imposed on the country. Thus, transportation of an automobile to the Russian Federation through other channels would take much time and is comparatively more laborious and pricey. And hence, the leading automobile companies, Hyundai and Kia, are finally putting down their business in Russia by the coming December.
“Salons are selling off leftovers with a markup of a million rubles, changing signs and assortment to Chinese brands, and staff is leaving,” writes Mash. “Everyone suffered: fleets, employees, resellers, and ordinary people.
Therefore, the entire fleet of vehicles is gradually being replaced by the incoming Chinese. There are no longer any popular models (let’s say Rio, bye-bye). In one of the capital’s showrooms, there are two models left that
have risen in price by a million – Cerato 2022 will be sold for 3 million and K5 for 3.5 lamas.
And this is not at maximum speed”, added further. The brands and showrooms out there in Russia are forced to put back their diminishing businesses in front of the Chinese labels. And a few that are still at the forefront of the Russian Market are sold like gold dust. Hyundai Solaris, Elantra, and Sonata cannot be found in showrooms now, but jeeps can only be bought at an inflated price – from 4.5 million rubles.
Chinese labels are also dominating the collections, and brands are being overtaken while the signs change to Biac. The Hyundai plant in St. Petersburg was put up for auction for 500 billion rubles.
Due to the restrictions and limitations, brands like Hyundai and Kia are set to put off their well-grounded businesses in the Russian region by the end of this year. What are your thoughts on the same? Do you think the replacement of such brands with Chinese labels would actually work? Or will it fail to accommodate Chinese business in Russia? Share your views through feedback.