Low prices make Chinese cars accessible in Russia, but that does not guarantee a long-term future.

On March 16, 2023, the Kaiyi E5 sedan assembled at the Avtotor factory in Kaliningrad was officially sold in Russia, with an asking dealer price of 1,959 million rubles (about 637 million VND at the current exchange rate). The Autonews.ru page of RBC media group titled this event "Cheaper than only Lada" (translated from Russian). According to this site, on the Russian market at that time there was no cheaper car model with equivalent specifications.

A brand that is not afraid of a cheap image

Kaiyi entered Russia at a time when the market was empty after many Western firms withdrew. Autonews.ru said Kaiyi's representatives in Russia do not mind the brand's popular image, but consider it an advantage. The E5 model was also introduced as adapted for Russian conditions, with a reinforced suspension, an additional anti-rust treatment of the body and an engine capable of using A92 gasoline.

This new brand expanded at a fast pace. According to Autonews.ru, after only 2 months of opening for sale, Kaiyi has brought about 6,000 cars to dealers. In addition to the E5 sedan, this brand introduced the X3, X3 Pro and X7 Kunlun crossover models, all assembled in Kaliningrad.

Three years later, a transfer announcement

Kaiyi's journey in Russia ended with a short announcement on its website. From May 1, 2026, KAI RUS, the distributor of Kaiyi in Russia, transfers all warranty and repair obligations to Votur Motor Rus, the business distributing the Jetour and Soueast brands. According to Rossiyskaya Gazeta, this decision practically confirms Kaiyi's departure from the Russian market.

The numbers show that the retreat did not come suddenly. According to Rossiyskaya Gazeta, Kaiyi assembly at Avtotor started in 2023 but stopped in 2025. In the first quarter of 2026, the entire Russian market only bought 49 Kaiyi units, down 94.6% over the same period, and dealers had 38 units left in inventory.

In 3 years of presence, Kaiyi has sold nearly 22,000 cars in Russia. All of these car owners now have to work with another business, not the one that sold them the car.

The company's promise and the car owner's questions

Kaiyi representative said all warranty obligations for vehicles purchased at official dealers are still valid. "We thank everyone who has trusted the Kaiyi brand, and believe that the transfer of service functions to Votur Motor Rus will help maintain a high level of support," a company representative told Auto Mail.ru (translated from Russian). The company said dealers are renewing service contracts and spare parts supply is uninterrupted.

This commitment is necessary. But for the car owner, the responsible unit is now another business, re-signing contracts with each dealer, and the quality of post-transfer support is still nothing to measure.

"Natural selection" in an overcrowded market

Kaiyi did not withdraw because of an isolated incident. Mr. Oleg Barinov, CEO of the Russian Automobile Dealers Association (ROAD), called Kaiyi's departure from the market "natural selection" (translated from Russian). According to him, there are currently more than 60 Chinese brands selling cars in Russia, but most have low sales.

Kaiyi is also not the first case. Mr. Ismail Ismailov, Associate Professor of the University of Finance under the Russian Government, reminded that in 2025 the Skywell brand will leave Russia because it cannot stand with buyers. At the same Avtotor factory, the SWM brand only sold 101 cars in the first 2 months of 2026, down 91.3% over the same period, according to Life.ru.

On the contrary, according to Gazeta newspaper, BAIC Group decided to stay and invest in the distribution system in Russia. The difference between the two options shows that what determines the car owner's fate is not the price at the time of purchase, but whether the company has enough scale to stay or not.

ROAD proposes to regulate the responsibilities of all parties in the market under the "vehicle life cycle" initiative, including dealers, manufacturers, importers and service units. According to the association, buyers must be protected throughout the life of the vehicle, regardless of whether the brand changes its structure or withdraws from the market. That proposal shows that Russian agents also acknowledge the gap in the current buyer protection mechanism.

According to preliminary statistics from the Customs Department, in the first 8 months of 2026, Vietnam imported 44,335 complete cars from China, an increase of 45.9% over the same period last year. That increase comes with the appearance of many new Chinese brands in the domestic market. Data from Russia does not allow to conclude that the same thing will happen in Vietnam, but shows who bears the consequences when a market has more brands than it can accommodate.

In 2023, the Kaiyi E5 was welcomed as the cheapest option in the segment in Russia, and that price helped the brand sell nearly 22,000 cars in just a few years. When more than 60 brands share the same market, the slowest sellers will leave first, while the warranty commitment that buyers receive at the showroom is transferred to another business with a notice. The car is still in the owner's garage, and the company that sold it to them is no longer on the market.

PV