Prices of Chinese cars ruble plunged extended its own brand is not easy to attack Russia

Posted on 12/19/2014 5:37:51 PM

By falling oil prices, the impact of Western sanctions and other factors, the Russian economy is facing difficulties, the ruble slumped more than 20 percent for two days of this year fell by more than 100%. Although the State Administration of Foreign Exchange and industry experts have said that the devaluation of the ruble have impact on China, limited, but this crisis is bound to cast a shadow on bilateral economic and trade cooperation, and car VRZ head rotor 149701-0520 price private label have been affected significantly.
Geely, for example, in the first 11 months, the company sold a total of 16,122 in Russia fell by 34%. Geely had also issued a profit warning, said the loss of foreign currency exchange devaluation of the ruble, net profit this year will be about five years in the accident, news dragged share price of the company fell 22% in intraday trading.
In addition, BYD November 18 were found in the H shares and A shares of the two cities, "Black Swan" stock prices style cliff fell by more than speculation in the market, there is a devaluation of the exchange losses of ruble caused by his grave. Despite subsequent bursts BYD announcement to clarify the relevant rumors, but the reasons for the sudden drop in its share price so far remains a mystery.
Russia: auto-export center
In foreign brands dominate China's auto market, independent brands have been suppressed, but this did not stop, "going out" pace, other markets in the eyes of others to foreign brands, while Russia is an important export market for its own brand.
In 2003, the first to enter the Russian market Zhongxing Automobile, after several years of years of exploration, in 2006 China's auto exports to Russia reached 38,000, "Chery", "Great Wall", "FAW" "Boom", "Hafei" "Yutong", "Di brand" is entering the Russian market, car SUV, pickup, low-end cars, trucks, buses and other mainly.
Independent car prices in developing Russia has not been easy, the "door policy", "protective door" has continued, in 2013 sales of its own brand in Russia to reach 96,000, Lifan and Geely, which tied in the first place with 27,000, followed by Chery and Great Wall then there are 20,000 sales. Combined sales of all brands of less than 100,000, total sales accounted for only 3% of sales in Russia, but Russia has its own brand last year, the largest export market.
According to data from the Automobile Association, 2013 annual export brands were 948,100, a Russian market accounted for more than 10%.
Ruble devaluation: Geely Lifan gun lying fear
Yes, holders of Geely again, this is the third time in three days. Geely brilliant debut fame, "do Millet Soy" again demonstrates Li's personal charisma, but this third holders but neither beautiful nor humorous, this matrix Russian ruble plunged into the north wind is Geely really feel the cold.
Car Sohu learned that the ruble devaluation, much more than the gun auspicious lie, there is a big wave of independent car prices have suffered, including the head Lifan injured.
From these data, Lifan car prices in China are all sold in Russia the highest in the first 11 months of total sales of 19,753, up 19 percent, although the decline is less than auspicious, but the importance of the market Russian is much larger than for Lifan, Geely have.
There are statistics that Lifan sales in Russia last year accounted for 24 percent of all sales, the first 11 months of this year, there are still 17%, while the proportion of Geely, Great Wall and Chery, only 2 % -5%. If the Russian economy continues to slump, Lifan, in addition to recent injuries, I fear most is fear.
Localization strategy clouded
The fall in the face of falling Russia, Geely has said it will increase the selling price of the car in order to reduce the impact of the devaluation of the ruble, while accelerating the localization of production in major markets exports, reduced foreign exchange risk in these markets.
. "We're not there to sell products to earn some money left, you should consider the long term," director of public relations for Geely Yang Xueliang long before the ceremony at the output in the Middle East said: "the external strategy is to grow the brand Geely consider long-term perspective."
Obviously, Geely has always planned to invest in factories abroad, the international strategy to go further, the current devaluation of the ruble lost more determined to bring Geely localization strategy.
Russia has always been a strong ally in the world, not many, in recent years in the diplomatic obvious signs that China's friendship and the importance of bilateral economic and trade exchanges continued to increase, independent car companies build factories in Russia this year, the news frequently.
Wall Tula factory pioneer in August, 3.2 billion investment, the design capacity of 150,000, scheduled to begin in 2017; Chery announced in early August in Russia plant "Oldsmobile" assembly, the first phase of 1,000 per month, monthly design capacity of 3000; or August, Lifan shares issued a proclamation declaring investment in factories and production and sales of vehicles in California to invest more than 900 million yuan.
Although localization strategy helps reduce the risk of foreign exchange, but just beginning to find ruble fell, the economic difficulties of Russia, the independent car prices in Russia cast a shadow over the prospects. From sales data from November to visit in Russia, only Chery and hippocampus contrary growth, and the rest showed a decrease in the state of independent brands, BYD, FAW, car Luxgen not even sell.

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