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21 February 2025

Russia Launches New Auto Brand Tenet With Chery Models

The partnership with China aims to produce vehicles suited for local conditions by 2025.

The Russian automotive market is gearing up for the introduction of the new brand Tenet, marking the next chapter in the collaboration between Russia and China. The announcement was officially made on February 20, 2025, when officials from AGR Automotive Group, the manufacturing partner operating out of Kaluga, signed a technological partnership agreement with the Chinese company Defetoo.

Vladislav Shapsha, the governor of Kaluga, shared specifics about the Tenet models during the launch presentation, emphasizing their design which is intended to cater to Russian conditions. "The car Tenet has been created specially for Russian conditions: reliable, comfortable, technological," he stated during the event. Serial production is planned to begin by the second quarter of 2025, as efforts are put forth to prepare the assembly line at the former Volkswagen plant now managed by AGR.

Under this initiative, the production process will be phased, starting with large-unit assembly and eventually progressing to full-cycle production. "This project has been approved by the governments of Russia and China," noted Andrey Pavlovich, chairman of AGR Holdings. There is optimism about the depth of localization planned for the assembly, which is expected to lead to significant economic benefits and job creation in the region.

A significant feature of the Tenet brand is its focus on rebranding existing models from the Chery lineup. Initial models set to hit the market include the Chery Tiggo 7L, which has been unveiled as the primary offering, along with the Tenet 3XT and Tenet 31T, corresponding to Chery's Tiggo 4 and Tiggo 8 Pro Max respectively. These adaptations appear to be straightforward rebadges, prompting speculation among industry experts about the originality and true innovation behind the new brand.

Industry expert Andrey Morozov bluntly remarked, "It's exactly the same as with the 'Moskvich': old 'Chinese' under a new name." His sentiments reflect the broader perception of the new Tenet brand. Dmitry Popov, another automotive analyst, reinforced this idea, stating, "Talking about this being a new brand is not quite right. Most automotive manufacturers initially copy others." The foundations of the Tenet lineup seem to rest on established models without introducing groundbreaking advancements.

The approach taken by AGR and Defetoo highlights their strategy to establish credibility and market presence in the competitive Russian automotive market. By leveraging well-established Chery models, they aim to quickly gain consumer trust. This practice is not unfamiliar; the Russian market has seen similar tactics with brands like Moskvich and others opting to brand familiar models with local names.

During the presentation, the designs of the new automobiles were previewed. They bear significant resemblance to their Chery counterparts, especially the Tiggo series. The notable variations lie only within cosmetic changes, emphasizing the need for caution among consumers eager to establish brand loyalty to Tenet.

Activists and automotive enthusiasts have voiced mixed reactions to the incorporation of these rebadged models. Many recognize the pragmatic decision to utilize existing vehicles to keep production rolling, but there's skepticism about the long-term allure and unique value proposition of the Tenet brand.

Market responses so far have indicated a divided opinion. Some consumers show readiness to invest in these vehicles, especially with reports of initial improvements over previous offerings like the Moskvich, which had faced severe quality control challenges. Others, like Morozov, warn about the hidden disadvantages of rebadging and question the necessity of masking established brands as new entries.

While Tenet expands its local offerings, it stands to navigate the rapidly changing automotive industry. The gradual strategy of increasing localization not only aims to support their infrastructure but also aligns with the Russian government's push for self-reliance within the sector, especially following the exit of major Western automakers.

It remains to be seen how the brand will evolve and capture market share against both local competitors and the remnants of the Chinese automotive sector, which faces its challenges amid fluctuated demand following the exit of many Western brands. The pressure to innovate, manage consumer expectations, and build brand loyalty will be persistent tasks for the new brand.

Although the official price details have yet to be released, estimates suggest new Tenet models could start at around 2.8 million rubles, placing them within proximity of similar offerings from competitors.

Expectations are cautiously optimistic as the production gears up for launch. This will test the resilience of local partnerships and their ability to satisfy the demands of modern consumers under the shadow of earlier automotive missteps. The next few years will be pivotal for Tenet and its positioning within both the Russian and broader world markets.