According to the Financial Times, Geely has doubts about the future in Russia, and that Chinese automakers will be able to achieve great success in the country even after the departure of many competitors.
Geely has suspended operations at a plant in Belarus that exports products to Russia and has begun an audit assessing reputational risks for the brand. The Beijing-based group, which owns Volvo and Lotus and a minority stake in Mercedes-Benz, will review potential supply chain issues and local market conditions, according to the Financial Times.
The potential exit of Geely from Russia is contrary to the expectations of analysts and some in the industry, who believe that Chinese companies can do well after the departure of competitors and gain a foothold in the Russian car market, especially as they face pressure from Beijing to increase export.
Chinese car imports to Russia tripled last year to 123,000 from 43,000 in 2020, while China’s overall exports doubled to 2 million units. China plans to bring this figure to 5 million cars by the end of the decade.
Automakers from Europe, Japan and Korea have stopped sales to the Russian market after the escalation of the situation in Ukraine, while many privately said they may refrain from resuming supplies even in the event of peace.
Geely’s doubts and the shutdown of its factory in Belarus highlights the dilemma faced by Geely and other Chinese companies.
Source: ixbt
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