Lifan may leave the Russian market by the end of the year

Lifan may leave the Russian market by the end of the year


 

Rambler.- Chinese car manufacturer Lifan may leave the Russian market by the end of 2020.

According to the publication, the possible withdrawal of Lifan from the Russian market is related to the company’s debt obligations in China. The total debt of the company to creditors amounts to 31 billion yuan (approximately $4.4 billion), 60% of which has to be paid back in 2020. The situation has also coincided with the crisis in the Russian car market, as well as the bankruptcy of Derways plant, which carried out the imports and the assembly of the vehicles.

The publication has added that there are no new Lifan vehicles at the dealer centres of the company at the moment. Meanwhile, the sources of Gazeta.ru has stated that the support will continue for already-sold cars with spare parts.

As emphasised by experts interviewed by TASS, the companies which have no substantial production in Russia should leave the market during the crisis.

According to AEB data, Lifan sales have fallen by 74% in Russia in 2019, to 3960 units.