Luxury accommodations: The factors that established Hongqi's reputation in Russia
The Origins and Growth of Hongqi in China and Beyond
Hongqi, translating to "Red Flag," holds a distinguished position as China's premier automotive brand. Established in 1953, the First Automobile Works (FAW) marked the advent of China's auto industry, with Hongqi emerging five years later in 1958. This move was prompted by Chairman Mao Zedong's personal inspection of the first automobile and the necessity to provide leaders with ceremonial vehicles. Mao himself bestowed the name "Hongqi" on the brand.
In commemoration of Hongqi's 60th anniversary in 2018, President Xi Jinping championed an expansion of the brand's model range, intending to make premium Hongqi cars accessible to a broader customer base. Subsequently, Xi demonstrated his support by adopting a special-purpose vehicle similar to the CA770 limousine of 1963. Given Hongqi's historical association with China's government leadership and its status as the first automaker in the country, its reputation as "Brand No.1 in China" seems well-earned.
Hongqi ventured into the Russian market in May 2023, celebrating its 67th birthday. By May 25, 2025, the brand had showcased significant growth in the country. Chinese President Xi Jinping's visit to Moscow in May 2024, marking the 80th anniversary of the Victory Parade, served as a testament to Hongqi's mission as a symbol of prestige, respect, and trust.
The demand for Hongqi's business and representative models in Russia has risen steeply. In 2024 alone, 7,220 cars were delivered to customers, marking a 113% increase over the previous year. Corporate sales accounted for almost half of the total sales volume. In a bid to sustain this momentum, Hongqi expanded its vehicle portfolio to seven models, increased its dealer network by 45%, and launched three new models for 2025 – the liftback H6, large-sized crossover HS7, and luxury sedan L1.
The Hongqi L1, set to debut in Russia, will be the brand's first luxury offering, boasting design reminiscent of models intended for China's top leadership. Owing to the lack of direct competition in the luxury segment, Hongqi expects strong sales for the L1 model in Russia. With these strategic moves, Hongqi seeks to establish a foothold in the Russian market, aiming for sales of 12,000 cars in 2025 and expanding its dealer network to 60.
Moreover, Hongqi is expanding its presence globally, with plans to build five major manufacturing base clusters across Southeast Asia, Europe, and Latin America by 2030. The brand is leveraging its technological innovations, such as pure electric "Tiangong," hybrid "Honghu," and intelligent "Jiuzhang" platforms, to appeal to diverse customer segments, particularly younger, luxury-focused buyers.
While Hongqi faces some market resistance in Russia, experts have identified it as a Chinese brand poised for growth. Despite this, the brand remains undeterred in introducing innovative vehicles tailored to local tastes and continuing its push towards international expansion. Through strategic product releases, technology advancements, and strengthening its official import channels and dealer networks, Hongqi aspires to capture a larger share of Russia's luxury automotive market.
The expansion of Hongqi's brand range in 2018, initiated by President Xi Jinping, coincided with an aim to make premium Hongqi cars accessible to a broader customer base, thereby entering the finance sector through increased sales volumes. As Hongqi ventured into the Russian market, the brand found opportunities for growth in various sectors, particularly transportation, given the significant rise in car deliveries to customers in 2024. To further solidify its presence in Russia, Hongqi has been focusing on technology, unveiling new models like the H6 liftback, HS7 large-sized crossover, and the luxury sedan L1, aimed at appealing to younger, luxury-focused buyers in the technology sector. This international expansion strategy positions Hongqi as a player in diverse industries, including not only the automotive sector but also finance and technology.
