In 2022, following Russia’s attacks on Ukraine, many Western nations reacted strongly and imposed economic sanctions on Russia.
Subsequently, almost all international car manufacturers such as Honda, Toyota, Mazda, Ford, and BMW withdrew from this market.
However, recently, the BMW Group discovered that some employees of a BMW dealership in Hanover, Germany, had defied the embargo and smuggled over 100 BMW luxury cars across the Russian border to sell them for illegal profits. These employees were immediately dismissed after being caught.
It is unclear if BMW will face any legal troubles due to this incident.
Since the famous car brands left Russia, the buying and selling of cars through the “black market” to funnel into Russia is considered a new business, bringing many profits to the merchants. Mainly, the models sold come from brands such as Mercedes-Benz, BMW, or Audi.
BMW has tried to stop this smuggling activity but seems to face challenges as there is demand in the market.
Western car brands are trying to comply strictly with the embargo regulations and combat the sale of cars through the Russian “black market.” However, this very act benefits car brands from China. Currently, Russia is a “lucrative” market for China.
At present, nine out of ten best-selling car brands in Russia are from China. According to data from the China Passenger Car Association (CPCA) in the first nine months of 2024, China exported a total of 849,951 cars to Russia. Russia is currently the most important export market for Chinese car brands.
TH (Tuoitrethudo)
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