Russia's Tire Market Witnesses a 12 Fold Surge in Demand Mainly Fueled by Imports from China

International Prominent Tire Brands Exit the Russian Market

In a recent development, global tire manufacturer Michelin announced its decision to sell its tire manufacturing companies, MRTMC and Camso CIS, located in Russia, to the local tire distributor Power International Tires, according to a report by Reuters. This move marks Michelin's exit from the Russian market after 26 years, making it another major Western brand to leave the country following its entry.

The company's operations in Russia produced 2 million tires annually, primarily catering to passenger cars in Russia and the Nordic countries. Michelin is just one among hundreds of leading Western companies that have temporarily suspended their business activities in Russia. Additionally, tire industry players such as German brand Continental and Finnish brand Nokian have also sold their factories in Russia.

Chinese Tire Brands Experience a Massive Boost in Sales

As reported by the Russian newspaper "Businessman," the new summer car tires from Chinese brand Triangle have become the most popular choice among Russian consumers in their respective category for spring 2023. Avito's Head of Development for New Spare Parts and Car Services, Avito Golovenko, stated, "Among the newly launched summer tires in 2023, the Chinese brand Triangle is the most popular among Russians, accounting for 11% of Avito's summer car tire sales. The average price for a set of Chinese brand summer tires this year is 512,000 rubles (4,500 RMB)."

According to the Russian Advanced Technology Development Center, in spring 2023, China remains the primary source of imported tires in Russia, with South Korea ranking second in this aspect. A previous survey conducted by the Russian automotive magazine "Driving" revealed that over 40% of Russian car enthusiasts are considering switching to Chinese tires. The survey also highlighted that only 11.9% of Russians have purchased Chinese tires so far. Meanwhile, 16.6% of respondents plan to purchase Chinese tires due to limited alternatives, 8.7% intend to buy more expensive tires despite financial constraints, and 6.6% are interested in trying out new tire models.

Over the past year, Russia's demand for many Chinese tire brands has skyrocketed by a staggering 12 times. With the ongoing Russia-Ukraine conflict, the Russian market remains a significant player in the tire industry's supply chain, manufacturing, and sales.