Chinese company achieves history in Russian business rankings
Date
9/18/2024 8:42:28 AM
(MENAFN) In a significant milestone, Chinese automobile manufacturer Chery has emerged as the largest foreign company operating in Russia by revenue in 2023, according to Forbes magazine. This groundbreaking achievement was announced on Tuesday as part of Forbes' annual rankings, which assess the 50 largest businesses in Russia that are at least 50 percent foreign-owned.
Chery's ascent to the top is noteworthy as it marks the first time a Chinese firm has claimed the number one position in these rankings. The company saw an extraordinary increase in its sales within Russia, soaring by 300 percent year-on-year to surpass 590 billion rubles (approximately USD6.65 billion). In the previous year's rankings, Chery occupied the tenth spot, highlighting its rapid growth and market penetration.
Data from the analytics agency Autostat further underscores Chery's success, as it ranked as the second best-selling automotive brand in Russia last year, trailing only the domestic Lada brand and capturing an impressive 11 percent market share.
Chery's rise comes amid a broader trend of Chinese automotive brands gaining traction in the Russian market. Other notable Chinese manufacturers such as Haval, Geely, Changan, Exeed, and Omoda have also established a presence in the region. This influx of Chinese carmakers has effectively filled the void left by European, Japanese, and Korean manufacturers, many of which exited Russia following the onset of the Ukraine conflict in 2022 and the subsequent wave of stringent Western sanctions against Moscow.
Historically, European automakers dominated the Forbes list, with Germany's Volkswagen Group and France's Renault taking the top spots in 2022 and 2020, respectively. In the latest rankings, the second and third positions were held by tobacco manufacturers—Japan's JT Group and the United State's Philip Morris International—while American multinational PepsiCo secured fourth place, maintaining their standings from the previous year.
Chery's remarkable achievement not only reflects the shifting dynamics of the Russian market but also highlights the growing influence of Chinese companies in the face of geopolitical challenges. As these firms continue to adapt and thrive, the implications for international trade and economic relations are likely to be significant in the coming years.
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