China could lose European business over Ukraine says expert

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Lifan, a major Chinese car brand, has ended its sales in Russia, as relationships between Beijing and Moscow appear to fray. Lifan is the second largest Chinese automobile manufacturer in Russia, and was the largest Chinese automobile seller in Russia between 2014-2018. 

THIS IS A BREAKING STORY. MORE TO FOLLOW.

According to Russian publication Autonews.ru, the lack of registration of new vehicles in 2022, along with the fact that “there are no offers on their sale” currently, points to the fact that Lifan no longer intends to operate in Russia. 

Aside from this, Lifan’s hotline in Russia no longer seems to be operational, while their social media page has not been updated for the second year running, the publication points out. 

The most compelling evidence came from the fact in several car dealerships that generally sell Lifan vehicles, a reporter from Autonews.ru found no vehicles from that brand being sold.

 Lifan was one of the most popular car brands in Russia, and currently Avtostat estimates that there are now 154,000 Lifan cars in the country.

This comes amidst the backdrop of Western sanctions hitting Russia since its invasion of Ukraine, which hitting nearly every aspect of Russia’ economy. 

Experts originally predicted that the news of European, Japanese and American automobile brands pulling out of Russia would boost China’s market share in the country, allowing them to capitalise on the lack of competition. 

The news of a major Chinese car manufacturer pulling out of Russia comes amidst a report that shows that contrary to popular belief, China has not increased its demand for Russian energy since the invasion of Ukraine.

The International Energy Agency published looking at the global oil market, in which it wrote: “Contrary to expectations, so far there are no signs of increased Russian exports to China, where surging Covid cases and severe mobility restrictions have cut economic activity and oil demand.”

Source: Read Full Article