Chery abruptly leaves the Russian market: the main reasons and consequences

Chinese automaker Chery Automobile has officially announced its withdrawal from the Russian market. The company, which is one of the largest exporters of cars from China, plans to completely wind down its operations in Russia by 2027.

Why Chery Is Leaving Russia

The main reason for discontinuing Chery car sales in Russia is the risk of falling under secondary Western sanctions. The company is preparing to list on the Hong Kong Stock Exchange and raise approximately $1.2 billion through a stock offering.

“We have decided to wind down our operations in Russia to ensure compliance with sanctions requirements and export control regulations,” Chery said in an official statement.

In addition, the Chinese auto giant is actively expanding its presence in the European Union and Australia, where sanctions pressure on companies cooperating with Russia could become an obstacle.

Other Reasons for Withdrawing from Russia

Another factor was the increase in recycling fees on imported cars. Since Chery does not have its own production facilities in Russia, the company automatically faces additional costs.

It is also worth noting that Chery had previously halted sales in Iran and Cuba as part of its efforts to realign its business strategy with global markets.

Chery’s losses from exiting the Russian market

For a long time, Russia was one of the key markets for Chery, Exeed, Jaecoo, Jetour, and Omoda. In 2024, more than 325,000 vehicles were sold there, accounting for about 20% of the company’s global sales.

📉 The Russian market alone accounted for 25.5% of Chery’s total revenue. There were 372 dealerships and 687 car showrooms operating in Russia, but starting in April 2025, they began to be transferred to three local companies.