Nowadays, there is strong demand in the Russian automobile market, but high import tariffs have become a major obstacle for China automobile companies to go abroad. Direct export costs are high and competitiveness is weak. Bishkek, the capital of Kyrgyzstan, relies on its unique location and policy advantages to perfectly circumvent tariff barriers and add triple dividends of policy, logistics and profits. It has steadily become a "gold rush" for China automobile exporters. More and more businesses are clustered together, and the core reasons are clear at a glance.

Core advantages: Bypass high Russian tariffs and significantly reduce costs

In recent years, Russia has continued to increase import tariffs on complete vehicles and directly exported cars to China. Tariff costs remain high, and the selling price advantage of complete vehicles has been greatly weakened, making it difficult to compete with local and other competing products. Kyrgyzstan and Russia belong to the Eurasian Economic Union. The two countries have signed an exclusive tariff agreement. After cars are exported from China to Bishkek for customs clearance and then transshipped to Russia, they can enjoy preferential tax rates far lower than direct exports. A rough calculation can save nearly 20% of the tariff cost directly lowers the terminal price of the whole vehicle, making Chinese cars more price-competitive in the Russian market.

Policy friendly: convenient customs clearance, low trade threshold

Bishkek has loose policies on cross-border automobile trade, simplified customs clearance procedures, high approval efficiency, no cumbersome additional restrictions, complete supporting foreign trade services, and can quickly complete full-process procedures such as customs declaration and vehicle inspection. Compared with other transit countries, there are no additional trade barriers here, and small and medium-sized exporters can easily implement operations without having to spend a lot of time and energy connecting complex processes to meet the needs of rapid turnover and high efficiency in automobile exports.

Smooth logistics: excellent location, saving time and money for transportation

Bishkek is located in the core of Central Asia, close to the western port of China. Road and railway intermodal transport lines are mature. Starting from domestic ports such as Xinjiang, it can be quickly reached directly to Bishkek, and subsequently transferred to core cities such as Moscow and St. Petersburg in Russia. The entire logistics is stable and has low loss. Moreover, the transportation cost of this transfer line is controllable. Compared with other remote transfer locations, it can further reduce logistics expenses. The entire link is mature, and the freight forwarding, warehousing and other supporting facilities are complete, so there is no need to worry about the problem of transfer chain interruption and cargo detention.

Considerable profits: leverage high profits with low costs and seize market opportunities

The decline in the dual costs of tariffs and logistics has directly increased the profit margin of a single vehicle. At the same time, the low-price advantage can allow China vehicles to quickly open up the Russian market and seize the blank share of Western brands after the withdrawal. Whether it is a new car or a second-hand car, transit through Bishkek can achieve "low-cost sailing and high-profit return". The light asset-light layout can leverage the big market of Russia without having to bear the high cost pressure of direct exports, and the cost performance ratio is full.

To sum up, Bishkek has accurately solved the core pain point of China's automobile exports to Russia. Its advantages of low cost, high convenience, and high return are irreplaceable. It has naturally become the preferred transit springboard for automobile exporters, and its popularity continues to rise.

Source: New energy at the forefront of the sea

[Disclaimer] The content of this website (including pictures and texts) originates from the Internet, and the copyright belongs to the original author. Respect the rights and interests of originality, and select content is only used for information sharing. If copyright disputes are involved, please contact us to handle the deletion in a timely manner.