Taxi fleets are increasing the share of cars from China

The growth in imports of passenger cars from China has led to a sharp increase in the share of such cars in Russian taxi companies. The current figure is estimated at 30%, and by the end of 2023 it may grow to 40–45%. Taxi fleets are experiencing a shortage of new cars, and despite the fact that some passengers are skeptical about the safety and comfort of Chinese cars, they are the ones who can reduce the shortage in the high fare segment.

The share of Chinese cars in Russian taxi fleets increased from 3% to 30% over the year, analysts of the investment transport company GTK-Holding calculated. By the end of the year, the figure may increase to 40-45%, predicts the company’s founder Said Zaliev. According to GTK-Holding, this year the Chinese JAC entered the rating of popular cars in taxi companies for the first time. VTB Leasing notes that Chinese Chery, Geely, Haval and JAC are among the most popular brands of taxi companies, and in the first quarter of 2022 Hyundai, Kia and Renault headed the rating.

The share of Chinese cars in the Citypark taxi fleet has also grown, says Dmitry Kovalenko, managing director of Citymobil and Taxovichkof, without specifying specific figures. In addition, he says, in the regions the company acquires Lada Granta and recently signed an agreement on the supply of Moskvich-3. In the increased tariffs of Yandex.Taxi, Chinese cars occupy about 10%, says Ivan Zapolsky, director of business development in Russia and the CIS at Yandex.Taxi.

The import of new passenger cars in the Russian Federation in the first half of 2023 increased by 3.2 times year-on-year, to 227.2 thousand cars, Avtostat calculated. Cars from China accounted for 75.7% of deliveries. Today, more than 70% of imports of passenger cars account for Chinese brands, confirmed in the July review of the car market of the Central Bank.

Difficulties arise with the use of Chinese cars in taxi services, GTK-Holding notes. According to analysts, every tenth taxi passenger in the Comfort Plus segment refuses to order a car made in China, fearing a low level of safety and a less comfortable ride. Although the number of failures is gradually decreasing, adds Said Zaliev. The “cautious attitude” of Russian buyers to Chinese brands is also noted in the review of the Central Bank. Drivers, says Mr. Zaliev, do not yet observe significant problems in the operation of Chinese cars, but “they are mentally prepared to contact the service more often.” And Dmitry Kovalenko points out that such cars break down more often and are less prepared to work in a taxi.

Despite the growth in imports of Chinese cars, market participants note the continuing difficulties with replenishing the taxi fleet. According to the estimates of the National Taxi Council, the shortage of cars for taxis by the end of the year may exceed 60%. For the stable operation of the industry, replenishment of 50-60 thousand new cars annually is necessary, while this year 24 thousand cars are expected, says the executive director of the organization Natalia Lozinskaya. The capacity of local production is still not enough to cover the entire demand of the industry, she adds.

Ivan Zapolsky points out that Chinese-made cars make it possible to reduce the deficit for increased Yandex.Taxi tariffs. So far, the most acute shortage of cars is felt in the economy segment, where inexpensive, but reliable and repairable models are needed, he clarifies. Dmitry Kovalenko also notes a significant increase in the cost of new cars and an increase in the cost of servicing taxi cars by about two times a year.

The growth in the cost of cars and the cost of their maintenance, taxi ordering services are among the reasons for the correction of pricing policy. According to the “Check Index”, in the first half of 2023, the average taxi bill in Moscow increased by 12%, to 771 rubles, in Russia as a whole – by 4%, to 435 rubles, year-on-year (see “ Kommersant, July 10). In GTK-Holding, citing polls, they indicate that Russians consider the cost of an average taxi ride at the level of 450 rubles to be acceptable.

Alina Savitskaya