How BAIC is Changing its Strategy in Russia: Analysis

The Chinese company BAIC entered the Russian market in 2023. Cars began to be assembled using the SKD method at the Avtotor plant in Kaliningrad in April 2023. However, the company's business in our country is not going too well. In 2024, just over 10,000 cars were sold. This forced BAIC to revise its development strategy in Russia. What will change?

Front-Wheel Drive Crossovers to Leave the Russian Market

Seven BAIC models are assembled and sold in our country: the BAIC U5 Plus passenger car, the X-family crossovers with front-wheel drive: BAIC X35, BAIC X55, BAIC X7, BAIC X75, as well as the all-wheel drive frame SUVs BAIC BJ40 Plus, BAIC BJ60.

The company has decided to completely exclude front-wheel drive crossover models from sales in Russia, which can be considered "illiquid" - low demand. BAIC believes that it is necessary to expand the range of all-wheel drive vehicles.

According to the plan, in 2027, the X-family crossovers will begin to be supplied to our country, but with all-wheel drive. Perhaps their assembly will be established at Avtotor. Such cars will have hybrid power plants, but there are no other details yet.

The only passenger car, and, accordingly, front-wheel drive car, U5 Plus will remain in the BAIC lineup in Russia. It will be sold to corporate fleets.

More SUVs for Russians

BAIC offers two frame SUVs - BJ40 and BJ60. The first of them is the only one in Russia with a removable roof. It is planned that the BJ41 model will appear on its base. Its roof will be non-removable. The model will retain all the key characteristics of the BJ40: an all-wheel drive system with the ability to connect the front axle and two turbocharged engines to choose from - a gasoline engine with a capacity of 218 hp and a diesel engine with 162 hp.

The second model BJ60 is comparable in size to the Toyota Land Cruiser 300. It is available with the same diesel engine as the BJ40, but it also has a 14-horsepower electric motor. In the future, the car will have a gasoline modification.

The Chinese also intend to bring the BJ30 hybrid to Russia. Its filling is as follows: a 1.5-liter turbo engine (ICE) and two electric motors with a total power of 409 hp.

Increase in Warranty Period and Changes in the Logo

As part of the new strategy, BAIC has also increased the warranty period for cars from five to six years or 150,000 kilometers of mileage. This should strengthen consumer confidence in the brand.

The new version of the logo, which was presented in China, will replace the existing design with a simpler one: a two-dimensional image with the brand name in red.

Read more materials on the topic:

• BAIC Decides to Recall Almost 20 Thousand Cars
• Avtotor Presents BAIC U5 Plus CNG on Methane
• BAIC X55 Assembled in Russia Has Risen in Price by a Million Rubles